Diversification Strategy Optimization Of Jiuquan Steel Group Based On Finacial Perspective

Because of the international financial environment and the impact of falling domestic demand, China’s steel industry is suffering a hard time recent years. Jiugang Group is a large state-owned company in the steel industry, hoping through the strategy transition of diversified companies to seek new growth point when its operational effectiveness is continuing to decline. However, strategy transition of enterprises is a long process, coupled with Jiugang Group’s huge, complex system, so the degree of difficult transition is obvious. How to form the evaluation system meeting the situation of the company, which also can pecify the direction of improvement, seems important.Firstly, this thesis reviewed the theory of corporate strategy transition and financial characteristics, focusing on the financial characteristics of diversified companies. Based on these theories, this thesis through the case of diversification strategy of Jiugang Group, using financial indicators and financial indicators, in-depth analysis possible problems and propose appropriate countermeasures in both group level and subsidiary level. Strategy transition is related with all aspects of the company reforming process, which lasts a long time and faces risks, so in this process company should pay attention to every detail. We believe the financial information analysis can be the effective mean to ensure the strategic transformation of companies.