Analysis On Diversification Motivation And Financial Performance Of Youngor

Diversification has become a strategic choice for many enterprises which consider to transform.However,the influence of diversification on enterprises is not the same.Some enterprises enlarge their business territory and improve their financial performance with the help of diversification,while others are on the verge of bankruptcy.The key to the success of the enterprise's application of the diversified development mode lies in whether the original intention can be matched with the implementation results.If the original intention of diversification of an enterprise is consistent with the implementation results,the diversified development strategy is likely to improve financial performance,if not consistent,it is likely to fail.Therefore,the focus of this paper is to explore whether the motivation and results of diversification are consistent,and the deviation is the reason for the success or failure of diversification.This study selects youngor group co.,LTD.,a typical enterprise that conducts diversification earlier,and conducts a comprehensive and in-depth analysis of the case company by taking the motivation of diversification--financial performance--the realization degree of motivation as the context.Firstly,this paper analyzes the motivation of diversification based on the theoretical basis,and then analyzes the financial performance after diversification from the two dimensions of the traditional financial indicators and the actual implementation of the motivation of diversification.Through the analysis of diversified factors,and financial performance,found the younger in the diversification of financial performance conflict with diversified factors,and then dig out the diversified practical problems arising from the execution process,tracing the causes of the problem again,eventually become the research conclusion: youngor diversified development is too fast and resource integration is weaker and neglect cultivating core competence,these problems led to the youngor fluctuations in financial performance,the management situation,this article puts forward corresponding Suggestions on youngor after and write the case enlightenment,insufficient research and prospects.In this paper,to some extent enrich the research of diversified factors combined with diversified financial performance,at the same time help the youngor group co.,LTD.,challenge in diversified development in the future,to improve the business performance,in addition to other companies,especially in the same industry,from why to diversify to diversified financial performance,the degree of motivation to achieve each link to provide decision-making,analysis of ideas and Suggestions.