Research On The Causes And Countermeasures Of The Financial Crisis Of Baofeng Group Under The Diversification Strategy

In the face of global economic integration and the aggravation of competition environment,enterprises often seek strategic transformation and business upgrading by means of new establishment and M & A,but not all diversified enterprises can disperse business risks and achieve the synergy effect of business and finance.Therefore,for the implementation of diversification strategy,we should make analysis according to the specific situation of different enterprises.Stormwind group went public in 2015 and implemented a diversified strategy,with a market value of more than 40 billion yuan.In the past four years,its actual controller has been charged,and its market value has been greatly reduced,so the research on the financial crisis of Stormwind group has a strong practical significance.This paper uses literature analysis,case analysis and other methods to conduct case study on the financial crisis of storm group.Combined with its diversified development strategy after listing,it analyzes some financial indicators from 2015 to 2018,and concludes that there are financial crisis performance of storm group,such as large financial risk,reduced profitability,cash flow shortage,etc.Based on the above research,the paper also analyzes the reasons why storm group fell into financial crisis,and finds that storm group’s early abandonment of its main business led to the lack of core competitiveness of enterprises,blind diversification of investment led to capital dispersion,coupled with the mismatch between its strategy and capital,weak cash management and control ability,lack of financial management system,single equity structure,etc.under the diversification strategy,which led to financial crisis The crisis broke out and intensified.Therefore,in view of the above research,this paper puts forward some countermeasures,such as cultivating the "hematopoiesis" function of enterprises to improve the core competitiveness,strengthening the industry research to avoid blind investment,establishing the corporate culture matching with the strategy,and enriching the equity structure.I hope it can provide solutions for storm group to get out of the financial crisis,and also provide some reference for the layout of diversified development of related enterprises,in order to effectively prevent the occurrence of financial crisis and maintain a healthy and stable development trend.