Research On Financial Risk Under The Strategy Of Enterprise Diversification

The diversified development of enterprises has always been a common means for enterprises to grow and develop in market competition.In order to diversify their business risks,enterprises seek a wider space for profit growth and use mergers and acquisitions to expand into other fields.However,the diversification strategy as a way of enterprise development,its implementation effect is very different.Some companies can therefore seize more markets and improve their competitiveness.However,some companies will blindly expand and diversify limited technology and resources,causing them to lose their original core competitive advantages,resulting in a comprehensive financial crisis and failure to achieve the desired results.In general,enterprises should carefully use the double-edged sword of diversification strategy in accordance with their own situation and market environment.This article selects the representative TCL technology in the field of manufacturing consumer electronics as the research object,mainly using quantitative research methods and case studies.Based on literature research,the overall financial risk level of TCL Technology Group was analyzed by entropy method and efficiency coefficient method,and then the causes of TCL Technology financial crisis were found through specific analysis of profitability,solvency and other risks.The study found that the series of diversified layouts of TCL Technology has made the group's overall funding tight,leading to greater risk of corporate debt servicing,profit quality and operating risk,but the overall trend is good.After analyzing and summarizing the causes of the financial risks of TCL Technology,this article puts forward some targeted countermeasures and suggestions.Finally,the article summarizes the case studies and draws conclusions,hoping to reduce the financial situation for other diversified enterprises.The risk is to provide some reference help.