The Motives And Performance Analysis Of The Non Related Diversification Strategy Transformation Of ROYAL GROUP

At present,many companies carry out strategic transformation in order to cope with their internal and external environment changes.As China's leading buffalo milk enterprise,ROYAL GROUP chose to enter the cultural industry facing the adverse internal and external environment,and implemented an unrelated diversification strategy transformation.After the transformation of ROYAL GROUP,the dual main industry model of "Culture + Dairy" was formed.Taking ROYAL GROUP as the research object,this paper interprets the case of ROYAL GROUP's unrelated diversification strategy transformation,analyzes the reasons for its strategic transformation,summarizes its strategic transformation goals and business synergy effect.Then,we use the financial index analysis and EVA evaluation method to analyze the performance after transformation.Finally,we summarize the successful transformation experience of ROYAL GROUP,and hope that the experience of successful transformation can provide reference for other traditional dairy enterprises in China.Through the case study,we have drawn the following conclusions: the transformation of group's strategic objectives,the first is dispersed dairy business risk,bring new profit growth point;second is the dairy industry as the backing,the cultural industry as the locomotive pulling the growth performance of enterprises;third is the enterprise continues to build the cultural industry,cultural industry chain mode.ROYAL GROUP transformation strategy operating synergies,first,by the cultural industry enterprises gradually break the regional barriers;second,the cultural industry can effectively reduce marketing costs;third,the use of cultural industries to strengthen the ROYAL GROUP's brand influence;fourth,into the culture in ROYAL GROUP's marketing channel and marketing innovation.In addition,ROYAL GROUP transformation to obtain a good effect in the early stage of the strategy,but in between the transformation of business integration,resource allocation and management ability is still uncertain,the need for timely correction of possible defects in the operation and management,and constantly improve the management level of the enterprise,in order to meet the needs of the sustained and healthy development of the company.