Study On The Relationship Between Diversification And Financial Performance Of Garment Enterprises

In 1965,the master of management took the lead in introducing the concept of diversification to the public,and many scholars in the academic circle had a great interest in it and started a heated discussion.In today’s society,the process of economic integration is accelerating,which makes the competition between enterprises is becoming increasingly fierce,as much as possible in order to grab the market,large and small businesses have begun to diversify the strategy,as is on the scale of new round the scale and the expansion of the market,make the whole enterprise better,and the development of related industries,ultimately achieve the maximum value.Until 1990 s this period,China’s enterprises set off a wave of development from specialization to diversification,but the European and American enterprises have been transferred back to the professional management of diversification.Although China’s large and small enterprises are actively using diversification,but the final achievement is not the same,diversification is mixed for the company,There are both advantages and disadvantages.How to use diversification to improve the performance of the company and the value of the enterprise is worthy of our in-depth study.The YOUNGOR group started very early so diversified,the implementation of a wide range of reasons it is what,whether to enhance the performance of YOUNGOR group and YOUNGOR in the future how to better use of diversification to maintain a competitive advantage,has a larger significance of these problems.This paper takes YOUNGOR group as an example,analyzes the financial report of YOUNGOR group 2001-2015 for 15 years,and studies the influence of YOUNGOR group on the performance.The four selected financial indicators related to YOUNGOR’s profitability,solvency,operation ability and growth ability were calculated and analyzed to evaluate the effect of diversification on YOUNGOR’s financialperformance evaluation;then based on the four theories of diversification of YOUNGOR diversified effect are analyzed,and then put forward reasonable suggestions according to the specific YOUNGOR’s diversification on its next step.