Enterpirse External Growth Strategy And Enterprise Value Realization

For the transformation of economic growth mode in China’s food industry, it is veryimportant to build leading enterprises with a diversified capital structure, high-technologyproducts and strong market competitiveness through enterprise value growth modes such asalliances, mergers and acquisitions (M&As), and to improve industry concentration and corecompetitiveness. In this paper, a systematic research was performed on how to implementexternal growth strategies of enterprise and enterprise value (EV) assessment in the foodindustry in China and around the world, by investigating strategic alliances and M&As in theglobal market, and analyzing characteristics and status of the food industry. Relativelyaccurate EV assessment in food industry, as well as social responsibility to ensure "foodsecurity"(FS) was focused. Finally, effective selection and implementation of basic externalgrowth strategies in the food enterprises were proposed.The main content is as follows:Chapter1: Introduction. The background and purpose of the topic were clarified. Theentry point, as well as research ideas, research methods and innovations of this paper were setforth.Chapter2: Review of research. The existing research on EV and its assessment, as wellas enterprise external growth strategies and performance was sorted out and commented on,based on the objective, scope and content of this paper. The theories on which the presentstudy are based, including monopolistic advantage theory, transaction cost theory, theory ofM&As, theory of alliances, and theory of EV, were introduced and commented on, providinga basis for the framework of theoretical analysis of this paper.Chapter3: A theoretical analysis of external growth strategies and value realization offood enterprises. Firstly, an overall theoretical analysis framework of this paper was builtbased on the above comments and theories. Enterprise values, and EV assessment methodsand systems were discussed, to build an EV assessment model in the food industry. Secondly,external growth strategies in food enterprises and their selection model were constructed.Finally, the relationship of value-added strategies with external growth strategies and EVrealization in food industry was analyzed and investigated, including the relationship ofinternal business strategies and EV realization-based external growth strategies with EVrealization and assessment, in particular the interaction mechanism between external growthstrategies such as alliances and M&As and EV realization.Chapter4: An empirical analysis of food industry. Firstly, the development status,characteristics and trends of China’s food industry were analyzed. Besides, its M&As history was reviewed and the future in this field was prospected. Secondly, the concrete scope ofempirical analysis was defined on this basis, a quantitative analysis model was built based onthe theoretical analysis model, and the source of the data was stated. Finally, a quantitativeempirical analysis, direct and indirect, of the food industry was performed.Chapter5: Enterprise external growth, social responsibility of FS, and M&As strategies.The most prominent FS problem and new FS problems in the context of new technology inChina were analyzed. On this basis, food enterprises’ selection strategies in M&As wereproposed from the perspective of enterprises’ willingness to invest in traceability systembased on the Hidden Markov Model (HMM).Chapter6: Development strategy of China’s food enterprise. Based on the theoretical andempirical analysis, practical suggestions were proposed for food industry EV assessment,enterprise growth strategies and their selection model, and strategies to take securityresponsibilities in food enterprises’ growth and development, and external growth strategiesand their selection model.Chapter7: Conclusions and outlook. The main content and innovations of this paperwere summarized, while its limitations were stated. Areas that require further studies, as wellas future research directions were presented.The main innovations of this study include investigation of the relationship between EVrealization and external growth strategies in the food industry, and establishment of aselection model of external growth path of food enterprises and a model of relationshipbetween external growth path and EV, based on the construction of a selection model of EVrealization-based external growth strategies of food enterprises. Furthermore, by combiningthe external growth strategies of the food industry and social responsibility to ensure FS, theformation of fruit&vegetable processing enterprises’ willingness to invest in traceabilitysystem and its main influencing factors were investigated by a simulation method using theHMM; and general principles of food enterprises’ selection in M&As were thereby presented.