Analysis Of The Impact Of Diversification On The Comprehensive Performance Of Shanghai Electric Group

With the development of economy,China has experienced a period of rapid economic growth after reform and opening up.At present,the momentum of economic growth has slowed down and gradually tended to be flat.In order to make enterprises develop better,many managers of enterprises are seeking new profit growth points and implementing diversified management.However,whether diversified management is beneficial or harmful to the development of enterprises is still uncertain.Therefore,starting from Shanghai Electric Group,this paper studies the impact of diversification on corporate financial performance through case analysis and qualitative and quantitative analysis.This paper not only analyses the financial performance indicators of enterprises,but also the operational risks and competitiveness brought by diversification,which makes the scope of performance analysis more comprehensive.The writing of this paper is mainly divided into six parts.The first part introduces the background,purpose and significance of the article.The second part elaborates the related theories of diversification,laying a theoretical foundation for analysis.The third part describes the development and diversification status of Shanghai Electric Industry.It analyses the diversification status of Shanghai Electric and studies the change and motivation of diversification degree of enterprises through the index of diversification rate.The fourth part analyses the impact of diversification on financial performance from the perspective of financial performance.Among them,financial performance mainly studies the impact of diversification through the analysis of financial indicators of profitability,operational ability and growth ability of enterprises,and evaluates the changes of economic value(long-term financial performance)of enterprises through EVA model.The fifth part analyses the change of enterprise’s operation risk and competitiveness from the angle of management performance,and further analyses the change of enterprise’s comprehensive performance.In the sixth part,through a comprehensive case study of Shanghai Electric,some suggestions are put forward for enterprises to adopt: in the process of diversification,diversification should be treated rationally and enterprise performance should be considered in depth;independent diversification should be implemented prudently to enhance synergy effect;industrialupgrading should be accelerated to promote structural adjustment;core competitiveness should be promoted to promote scientific research and innovation.