| Affected by the global economic crisis in 2008,today,the Chinese economy still in a downward cycle.Many companies were forced to seek diversified transformation,looking for new profit growth point.In 2012,the new central government came to power,"Eight Regulations" and "Six bans" files published,high-end catering industry performance droped rapidly.In 2013,as the first private catering company listed on domestic A-shares in China,Cloud Live Tech group business performance fell for the first time.Many high-end restaurant companies were reviewing the deformed development industry,which had experienced rapid growth for many years.Is diversification strategy an opportunity or a trap? This paper studies the diversification strategy of Cloud Live Tech group,which is the first of the "private dining A-shares".High-end catering industry was affected by the national policy under the condition of a serious recession,Cloud Live Tech group carried on the related diversification strategy and unrelated diversification strategy in 2012 and 2015,for four years,but did not achieve the desired effect,but more serious loss.Cloud Live Tech group is forced to take the way of the material assets reorganization to divest diversified business in December 2015,which declared Cloud Live Tech group diversification strategy operated for four years failed.Today,"Do all things,make money for all things" time has ceased to exist.The company which is to carry out the diversification strategy or has already carried out diversification strategy,need further research.Therefore,it is of great significance to study the diversification strategy of Cloud Live Tech group in the context of environment changes drastically.In this paper,first of all,the diversification strategy of related literature at home and abroad is reviewed and introduces the relevant theories of diversification strategy,including definition,classification,implementation path,motivation and effect,and introduces measure method.Then,the background of this paper is given,including the basic situation of Cloud Live Tech group,the motive of diversification and the development of diversification strategy.Focus on the analysis of the effect of diversification on Cloud Live Tech group,from four aspects,respectively on financial performance,market reaction,internal governance structure and the core competitiveness.And reveals the cause for the failure of diversificationstrategy,including wrong time,wrong path,lack of teamwork and weak financial management and corporate governance.Aim at failure,this paper put forward revelation,including choosing proper time,path,cultivating teamwork,lighten financial management and corporate governance.This paper hopes to provide some reference for other companies which are ongoing or planing to carry out the diversification strategy and avoid the fail path of Cloud Live Tech group. |
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