The Relation Between Diversification Of Chinese Catering Enterprises And Their Performance

In theory,the future of China's catering industry should be better and better with the improvement of people's living standards.However,in recent years,due to the slowdown of global economic growth,the increase of human resources,food materials,shop rents and other costs,the shortage of professional technicians and managers,and the introduction of the national anti-corruption policy,the growth rate of catering industry has slowed down significantly.Many catering enterprises have a single business model,slow income growth and high costs,which lead to poor business conditions.Many diners also responded to the desire to try more different and novel services,as well as more delicious and tasteless tastes.This situation reflects customers' pursuit of food culture and their expectation of better catering service.Therefore,for major catering enterprises,facing the advantages of such a large catering consumption market in China,diversification based on their core competitiveness to improve enterprise performance has become an important strategic decision of contemporary catering enterprises.However,diversification strategy is like a double-edged sword,which can lead enterprises to advance at full speed and also lead them to die out.Therefore,how to smoothly carry out diversification and improve the probability of success of diversification has become an urgent problem for catering enterprises to understand.At present,academia agrees that core competence is a deterministic factor that can increase the success rate of diversification.Therefore,this paper also wants to further explore whether core competitiveness can indeed increase the probability of success of diversification strategy through case studies.As a leader in catering industry,Quanjude's exploration of diversified management started early,and has been involved in many industries.Therefore,based on the diversified management strategy launched after Quanjude's listing,this paper analyses the general situation of the catering industry,paves the way for the analysis of Quanjude's core competitiveness,and then combines the development process of Quanjude's diversified management strategy.Quanjude's diversified business orientation is judged by using core competitiveness.Then,the influence of diversified business strategy on Quanjude is analyzed from three aspects: economic benefit,market benefit and social benefit,and the reasons for its success and the existing problems are summarized.Finally,some suggestions are put forward for Quanjude's diversified business.Finally,it summarizes the experience and puts forward the corresponding opinions for the implementation of diversification strategy of catering enterprises in China,thus providing certain reference value for the catering industry to realize sustainable development by utilizing diversification strategy.