Research On M Group Diversified Management And Performance Evaluation

At present,many large-scale enterprises in our country have taken a leading position in the industry by virtue of their abundant capital,technical strength,management strength and perfect organizational structure.However,with the economic development,their industries are gradually saturated,and enterprises are facing fierce market competition,which makes it difficult to break through the bottleneck of operation.Under this background,many enterprises have chosen diversified management to expand their business territory and find new growth points.However,the results of diversified management are not all successful.Some enterprises have realized the transformational development due to diversified management,while others are in deep loss predicament due to diversified management.The problems existing in diversified development are gradually revealed.The impact of diversified management on enterprise performance needs "specific problems,specific analysis" and corresponding optimization plan of one enterprise and one policy is put forward.In this paper,M Group is selected as the research object for case analysis.Since the implementation of diversification strategy,M Group has made outstanding achievements in the industry,and the scope of its diversification implementation has been involved from related diversification to unrelated diversification.Therefore,taking M Group as the research object has strong practical significance.Through analyzing the influence of M Group's diversified management strategy on its performance,this paper finds out the problems existing in diversified management and puts forward corresponding optimization schemes,hoping to provide some reference for other enterprises that choose diversified management.First of all,this paper analyzes the diversification strategy of M Group from the aspects of diversification process,motivation and degree.It is found that M Group implements diversification in order to disperse management risks,improve asset efficiency and other reasons.Its diversification degree is relatively high and is mainly related to diversification.Secondly,it analyzes the impact of diversification on performance from two aspects of financial performance and market performance.In financial performance,it mainly analyzes relevant financial indicators in combination with diversification motivation.At the same time,it selects Gree Group as a comparable company to carry out horizontal comparative analysis.It finds that there are some deficiencies in financial performance,such as poor profitability and rising financial risks after unrelated diversification expansion.In terms of market performance,through the event research method and Tobin's Q value,it is found that for M Group,whose main business is declining,diversified operation has enhanced the market value of the enterprise.The implementation of unrelated diversification has transformed M Group from traditional household appliance industry to science and technology industry,enhancing the confidence of market investors.Finally,according to the problems existing in M Group's diversified operation,corresponding optimization suggestions are put forward.