Refocusing Strategy Transformation And Its Performance Analysis

Since the reform and opening up,China’s economy has developed rapidly.Many enterprises have expanded their own scale through diversified operations,developed multiple profit sectors,and improved their market position.However,some enterprises have also experienced imbalanced diversified structures that have led to difficulties in their development.At present,China’s economy has entered a period of high-quality development,with higher requirements for enterprise quality.In the Report on the Work of the Government in 2022,the state clearly stated that the inevitable requirement for enterprises to achieve high-quality development is to "focus on the main industry,strengthen industry,slim down,improve quality and efficiency".More and more enterprises are realizing the importance of focusing on the development strategy of their core business,and it is necessary to ensure the effective implementation of the refocusing strategy,improve the operational status of the enterprise,and thus enhance the profitability level of the enterprise.Therefore,this article will take Shanshan Co.,Ltd.as the research object,analyze the reasons,paths,and implementation effects of its transformation from diversified business strategy to refocused strategy,and provide reference and reference for other enterprises.This article adopts a case study method.Firstly,it introduces the basic overview,diversification,and refocusing operation process of Shanshan Co.,Ltd.,and then deeply analyzes the implementation motivations of Shanshan Co.,Ltd.’s refocusing strategy transformation combined with internal and external environmental factors;Secondly,analyze the implementation path of the strategic transformation of Shanshan Co.,Ltd.in detail;Finally,the Tobin Q value,entropy weighted TOPSIS method,and a combination of financial and non-financial indicators were used to comprehensively evaluate the performance of Shanshan Corporation’s normalization.The study found that the implementation of Shanshan’s refocusing strategy in the short term was hindered by the changes in core business,the continuous adjustment of new energy policies and the impact of the COVID-19,which further affected the implementation performance of refocusing.The positive impact was not significant.However,in the long run,the continuous strengthening of enterprises’ R&D and innovation capabilities,the increasing attraction of high-quality talents,and the continuous investment of core resources have a very significant positive effect on enterprise performance.Therefore,enterprises should continue to pay attention to the changes in their internal and external environment,maintain sensitivity,continuously adjust their business strategies,seize the appropriate time for refocusing transformation,and at the same time,identify their own enterprise positioning and always implement the principle of focusing on the main business.Only by doing precision and optimizing core business can the performance of the enterprise continue to improve.