Research On The Performance Evaluation Of Diversified Operation Of Royal Group

The new normal of the economy in China has coming these days.The development mode has changed from pursuing rapid growth to seeking stable and comprehensive strategic thinking.The traditional single business development model has been difficult to provide continuous motivation for enterprise growth.More enterprises are rapidly expanding their diversified businesses through mergers and acquisitions,investment,and expect to bring economic benefits and diversify their business risks.Therefore,it is a business model which has many advantages for companies.However,with the prevalence of diversified operations,many diversified business enterprises that frequently cross-border have stopped,which have not brought about significant improvements in corporate value or even business failure.The research object of this paper is a typical case of this situation.The advantages and disadvantages of diversified business operations need to be evaluated according to specific situations.Therefore,this paper selects the diversified business case of the Royal Group to conduct research and make deep analysis of its operating results,so we can understand the impact of diversification on corporate performance in an objective and comprehensive way.Based on the transformation and diversification of the Royal Group,this paper selects the financial data and business data of the Royal Group since its listing,and conducts research on the diversified operating performance of the Royal Group.The article is broadly divided into the following sections: First of all,the case introduction and diversified development process of the diversified development of the case enterprise,and then the case analysis,including the analysis of the degree and the motivation of diversification and the performance evaluation of the Royal Group.The performance evaluation is evaluated from the financial ratio indicator,enterprise value and non-financial indicators of the case enterprise.Finally,for the conclusions and recommendations of the study,the conclusions of this paper are analyzed and summarized through the contents of the previous chapters,then the suggestions for the diversification of the Royal Group are made.From the study of the performance and resource integration of the Royal Group's diversified development,it is concluded that the diversified operation has significantly increased the performance of the Royal Group in the short term,while the long-term performance is not significant and achieved certain synergies.There are three aspects to the diversification of the Royal Group,diversifying business risks and expanding the market to enhance corporate competitiveness and managerial preferences.Combined with the motivation and performance of the diversified operations,it can be seen that the diversified operations of the Royal Group have not diversified the risks of the company and brought long-term sustainable development.Finally,summarizing the problems found in the analysis and the factors affecting the performance of the Royal Group,and Based on the actual situation,we proposes its diversified development to achieve high growth and sustainable development of the company.