Relevant Financial Research Of Yatai Group Diversification

The business scope is not just limited to one product or an industry, but the implementation of cross-product and cross-industry business, is the implementation of the diversification. The advantage of this kind of operating is that it can reduce the financial risk. In the market economy, enterprises are self-financing, if the product is relatively simple business, business professional fields focus. The ability to resist the market risk will fall if the business scope get large without control. In fact, there are many enterprises in diverse development process in a serious financial problems, the results are failed, for example, Williams and Chunlan. Due to the importance of financial management, this article means to improve the financial presence of Yatai Group diversified development.Firstly, the use of matrix analysis of the six industries Boston Yatai Group is diversified, including cement, real estate, finance is Yatai Group’s three business star business, and coal, medicine, commerce is Yatai Group’s three business the business problem. Then through the analysis of the profitability of each business and the whole group, development capacity, solvency, operational capacity and cash flow derived Yatai Group’s financial problems exist.Then, from both external and internal factors to analyze the impact of financial problems Yatai Group’s diversified business reasons. External factors are mainly political. And economic environment, internal factors, mainly from Yatai Group’s existing financing investment, existing financial budget, financial management and other aspects. Corporate financial management analysis is carried out, and pointed out its irrational factors.Finally, based on the foregoing analysis, against Yatai Group diversified financial problems exist, as well as its impact factors are put forward corresponding financial policy from Boston matrix and non-business related diversification development.