Case Study On The Integration Of The Whole Industrial Chain Of Mengniu Dairy

After the 2008 melamine scandal,the domestic dairy industry faced a severe crisis.Mengniu dairy as a leading enterprise also encountered the same problems.The incident also exposed the serious quality and safety problems of the domestic dairy industry.Domestic dairy enterprises faced with many difficulties,such as foreign brands' constantly encroaching on the domestic market,consumers' lost confidence in domestic dairy enterprises and so on.In order to revitalize domestic dairy industry and enhance consumers' confidence in domestic dairy products,the state has issued a series of related policies to promote the restructuring and integration of the dairy industry,reduce the vicious competition of the industry,accelerate the increase of market concentration within the industry,and constantly strengthen the entry threshold of the dairy industry.These measures are making small enterprises face losses and even bankruptcy,while leading enterprises in the industry are accelerating the pace of mergers and acquisitions and industrial chain integration.Mergers and acquisitions are frequent in the dairy industry.The trend will be even more pronounced in the future.After the industry crisis in 2008,Mengniu dairy industry began to actively integrate the whole industrial chain.As a leading enterprise in the dairy industry,Mengniu dairy has extended and laid out its industrial chain in various ways,such as self-construction,equity investment and strategic cooperation and so on,and has been throughout the entire dairy industrial chain.The first chapter of this paper combs the literature related to the connotation of the integration of the whole industrial chain,the motivation of the integration and the impact on enterprises,and the theoretical basis related to industrial chain integration.In addition,this article also elaborates the research background,significance,method and content of this paper.The second chapter describes the development status of the dairy industry and the basic situation of Mengniu dairy industry,and combs the layout of the whole industrial chain of Mengniu dairy,including the layout of horizontal diversification and vertical integration of the industrial chain.Chapter three analyzes the motivation of the integration of the whole industry chain of Mengniu dairy,and conducts trend analysis and comparative analysis for its financial indicators.After evaluating the financial data of the integration of the whole industrial chain of Mengniu dairy,it is found that its financial performance is unsatisfactory after the implementation of the integration of the whole industrial chain.In addition to the favorable increases in inventory turnover and sales gross margin indicators,most of the other financial indicators,such as profitability,operation ability,debt paying ability and growth ability,are lower than before.In the fourth chapter of this article,in view of the Mengniu dairy financial problems existing in the process of integration in the whole industry chain,this article will put forward to the following four suggestions:(1)strengthen cost control,(2)strengthen the integration of enterprises in the industrial chain,(3)continue to increase product research and development,(4)pay attention to the payment of industrial chain integration.The main purpose of this study is to improve the financial performance of Mengniu dairy,and at the same time,it also hopes to provide a certain level of reference for other enterprises which wish to integrate the whole industrial chain.