A Study On The Performance Of Refocusing Strategy In Enterprises

With the development of the global economy,more and more enterprises begin to attach importance to their own diversified development.Diversification originated in western countries at the earliest.Diversified management is a double-edged sword for enterprises,which can not only open up the market for enterprises,and may weaken the core competitiveness of enterprises and even make its decline.Many enterprises realized the importance of refocusing after being damaged by diversified development.The good strategic development of refocusing not only restores the core competitiveness of enterprises,it can also coordinate the use of resources among the various businesses of the whole enterprise in an integrated way,and form an effect that all the parties gather together to play an integral role and stabilize the main business.Therefore,the specific analysis of these enterprises is a better choice to evaluate the impact of refocusing strategy on enterprise performance.Wei Wei Food and Beverage Co.,Ltd.(hereinafter referred to as Wei Wei shares)in the food and beverage industry in a leading position,after more than a decade of blind diversification,the company chose to refocusing strategy,mainly through the contraction of non-core business and expansion of core business,and gradually achieve its "big food,big strategy" business objectives,but VIVI shares still has not been a short time to restore its strong core competitiveness to its original leading position.So what are the reasons for the failure of corporate diversification?What are the factors that influence the implementation of refocusing strategy? And what is the economic effect of the refocusing strategy? Therefore,this article uses the theory and the case study method,analyzes the enterprise's refocusing implementation effect.First of all,the paper sets out from the background of the refocusing of the enterprise,analyzes the operating performance of the diversified branch industries of Weiwei stock to the contribution of the enterprise,namely,the tea industry,the wine industry and the real estate industry,based on the core competence theory,this paper analyzes whether the diversified industries develop around the core business of the enterprise,and concludes that the reason of the refocusing development is the damage of the enterprise diversification.Secondly,the paper analyzes two paths of refocusing development strategy: First,after the overall analysis of the core competence of the enterprise,based on refocusing theory,the non-core business of the enterprise is gradually shrinking,especially Enterprise's thin dogbusiness,must carry on the prompt contraction,lest continues to consume enterprise's resources,affects enterprise's development.Second,for the core business of the enterprise to carry out an overall analysis of the cash flow business such as Weiwei soy milk,to continue to maintain its industry leading position,increase research and development efforts and marketing channels;To evaluate the development prospects of other diversified core businesses of the enterprise,identify problems in time and make improvements,and expand the cash flow and other resources of such businesses on the premise of not affecting the development of the enterprise,strive to achieve a stable position in the industry.Finally,the paper analyzes the business performance of various aspects after the implementation of the refocusing strategy,and makes a detailed analysis of the subdivided industries of Weiwei shares,based on the analysis of profitability,debt paying ability,operation ability and enterprise value,as well as the comparison with the financial index of the same industry enterprises,this paper sums up that the implementation effect of the refocusing strategy of the enterprise is not good,The conclusion of this study can give some enlightenment to other enterprises with similar management difficulties,such as choosing the right time of diversification,strengthening the core competence,perfecting the internal governance structure,and paying attention to strategic planning and synergy effect.