Causes Diagnosis And Countermeasures Of Financial Crisis Of Yurun Group

With the development of economic globalization,enterprises are facing increasingly complex business environment,in order to occupy a place in the fierce market competition,many enterprises choose to implement the diversification development strategy,through mergers and acquisitions,new establishment and other ways to enter more fields,expand the size of enterprises,through the synergistic effect to improve the operating profit of enterprises,improve market competitiveness.However,in the process of diversified expansion,sufficient capital sources and supporting management mechanisms are needed,and neither of them is indispensable.Otherwise,enterprises are likely to fall into financial crisis.In 2015,the first short-term financing bond of Yurun Group could not be repaid due to maturity,and the debt crisis triggered by it pushed Yurun Group to the forefront of public opinion.Yurun Group is trying to seek profit growth points through diversified expansion under the circumstance of sluggish main business,but financial crisis broke out in the process of expansion.With Yurun Group as an example,this paper first introduces the related to enterprise financial crisis,diversified expansion theory basis and literature review,secondly introduces Yurun Group and its diversified expansion history and facing the financial crisis,again to Yurun Group's public sector and private sector financial analysis,thought to cause the enterprise financial crisis is the following reasons: 1.The yurun food industry the sluggish market as a whole and the influence of food safety problems 2.Diversified expansion 3.Management system and corporate governance.And put forward the following countermeasures and Suggestions: 1.Attach importance to high-quality development of enterprises,attach importance to core business.2.Avoid blind expansion 3.Improve the management system and governance 4.Establish an effective financial risk warning mechanism.Through in-depth analysis of the causes of financial crisis of Yurun Group,this paper puts forward corresponding countermeasures and Suggestions,and provides some preventive Suggestions for similar enterprises to avoid such financial crisis.