Research On The Financial Performance Of Hengshun-Vinegar Industry Refocusing

With the acceleration of the pace of global economic integration,enterprises will choose diversification as their business development strategy in order to achieve rapid expansion,but there are many enterprises that ultimately fail to implement diversification strategy,and many enterprises have paid a painful price for this.Some enterprises that fail in diversification hope to gradually reverse their financial performance through the strategic adjustment of refocusing.However,the refocusing strategy will have different effects on different enterprises,different operators and different industries.Some enterprises gradually improve their financial performance through the refocusing strategy,and achieve another development,but there are also enterprises that are difficult to get out of the excessive diversification dilemma.The research on the process of enterprise refocusing and its impact on financial performance will help to evaluate the impact of refocusing strategy on enterprise development.After nine years of diversified development,Hengshun-Vinegar Industry gradually fell into the dilemma of over diversification.In 2010,Hengshun-Vinegar Industry began to implement the refocusing strategy,returning to the seasoning field,and achieved good results.Due to the unique characteristics of Hengshun-VinegarIndustry in China's condiment industry,the case study on the implementation of the refocusing strategy of Hengshun-Vinegar Industry has extensive theoretical and practical significance.This paper takes Jiangsu Hengshun-Vinegar Industry Co.,Ltd.(hereinafter referred to as Hengshun-Vinegar Industry)as the specific research object,using the literature analysis method,case analysis method,combined with strategic management theory,core competitiveness theory and resource capacity theory,studies and analyzes the impact of the implementation of the refocusing strategy on the financial performance of case enterprises.First of all,it introduces the general situation of Hengshun-Vinegar Industry,analyzes the strategic motivation of Hengshun-Vinegar Industry to implement the refocusing,combs the process of the refocusing and analyzes its degree of refocusing;then,it uses EVA evaluation system,financial index analysis and non-financial index analysis to compare the financial performance effect of the refocusing of Hengshun-Vinegar Industry vertically,and analyzes the performance after the refocusing of Hengshun-Vinegar Industry horizontally.Finally,the paper puts forward optimization suggestions for the future development of Hengshun-Vinegar Industry through this case study.It is found that with the increase of the degree of refocusing,the economic value-added of the case enterprise has improved significantly,the solvency,profitability,operation ability and development ability have improved as a whole,the market share,R & D investment and employee retention rate are at a high level,and the overall development is rapid and has great potential.However,compared with the condiment benchmarking enterprise Haitian Flavor-Industry,Hengshun-Vinegar Industry still has problems such as unreasonable financing structure,single sales area and marketing channel,low market share,less investment in R & D and staff,low R & D conversion rate,etc.In view of the problems and deficiencies found in the horizontal comparative analysis of Hengshun-Vinegar Industry's refocusing,the paper finally puts forward: optimize and upgrade the main business,enhance the competitiveness of enterprises;strengthen the construction of marketing terminals,expand the market share;improve the financing structure,improve the risk response ability;increase investment in research and development,improve the innovation ability of enterprises and other suggestions.