Study On The Diversification Of G Company From Financial Perspective

Diversification has always been a hot spot in academia, scholars of relevant disciplines have researched on diversification from their own perspectives. However, whether diversification can improve corporate value has not reached a consensus. In practice, when enterprises develop to a certain extent, they often face choices of specialization or diversification. Because of increasing competition in market, lots of enterprises chose diversification in China, but most of them don’t achieve desired goals. By contrast, enterprises in western countries have stripped unrelated business and return to the main business after diversification development boom. Because of difference in diversified situation between China’s enterprises and western enterprises, Combining with the actual environment, the research on diversification of our country’s enterprises has become a pressing need.Based on reviewing the literatures on diversity theoretical analysis and empirical research, this dissertation takes the typical enterprise of Chinese liquor-making industry-G company as research object, regards the diversified development of G company as the main line, uses the financial analysis tools to evaluate its diversification performance, sum up the problems in the process of its diversified development and make Suggestions for the problems and its future development. This dissertation mainly used the combining research methods of qualitative analysis and quantitative analysis, theoretical research and case study.This dissertation is divided into five parts. The first part is the introduction part, mainly introduces the research background, research significance and research methods of this dissertation, reviews and sums up the main research points of view of scholars both at home and abroad. The second part is the diversified related concepts and theories, mainly introduces the basic concepts of diversification, diversification effects and measures of business performance. The third part is the analysis of the diversified situation of G company, mainly analyzes the types, process, motivation and performance of its diversification. The section of diversification performance analysis mainly uses financial indicators analysis, from four dimensions of profit ability, operation ability, financial risk and income risk, to comprehensively reflect diversification performance of G company. The fourth part based on the above analysis, summarizes the problems in the diversification process of G company and puts forward the corresponding improvement Suggestions. Then, this part uses the SWOT analysis to the diversified situation and external environment of G company and puts forward Suggestions on its future development. The fifth part summarizes the research conclusion and revelation, prospects the future research direction.This dissertation chooses the typical enterprise of Liquor-making industry-G company as research object, combining of the diversification theory and financial analysis tools, more fully illustrating the diversified situation of G company. Relative to the existing research literatures on diversification, this dissertation uses a case study, making the research more in-depth and meticulous, to help to understand the diversification motivation and economic consequences of enterprises of our country in reality.