Research On Performance Evaluation Of Diversified Strategy Of Gree Electric

In recent years,the competition between enterprises has become more and more fierce.It is difficult for enterprises relying on a single industry or product to gain an advantage in the fierce competition.In addition,many enterprises develop to a certain extent,resulting in surplus resources.When using this part of resources,enterprises will consider whether to continue to increase investment in the original business or to develop new business,products or markets.In order to make the development of enterprises to a higher level,some enterprises will implement the diversification strategy.However,there is no final conclusion about what kind of impact the implementation of diversification strategy will have on the performance of enterprises.Some enterprises have achieved scale expansion and profit growth through diversification.Similarly,some enterprises are deeply in financial crisis after diversification.At present,the implementation effect of diversification strategy is the focus of many enterprises,so it is of great significance to evaluate the performance of diversification strategy.This paper selects Zhuhai Gree Electric Appliance Co.,Ltd.as a case study to analyze whether the implementation of the diversification strategy of Gree Electric produces a positive effect on performance.Firstly,on the basis of defining the concept of diversification,this paper sorts out the diversification theory and balanced scorecard theory,and sorts out the relevant literature at home and abroad on the relationship between diversification and performance,and the direction of diversification strategy performance evaluation.Secondly,it briefly introduces the situation of Gree Electric’s diversification strategy,including the general situation of Gree Electric and the development of its diversification strategy.On this basis,it analyzes the motivation of enterprises to implement the diversification strategy,and uses the Herfindahl index(HHI)to measure its degree of diversification.Thirdly,in the part of performance evaluation,the feasibility of Applying Balanced Scorecard to Gree Electric strategic evaluation is explained.After that,the performance evaluation department selects the representative indicators of the financial,customer,internal process,learning and growth dimensions of the Balanced Scorecard to analyze the changes before and after the implementation of diversification.In the part of comprehensive performance evaluation,the performance evaluation system is constructed and combined with analytic hierarchy process,the judgment matrix is determined by expert scoring,and then the weight of each index is determined to determine the influence degree of each factor on the performance of diversification strategy.Then take the average of the two years before the implementation of the diversification strategy as the reference value,and the average of the three years after the implementation of the diversification strategy as the actual value,calculate the difference rate between the two,and get the corresponding score.Multiply the weight of each index by the corresponding score,and the total is the performance score of the whole diversification strategy.Finally,according to the score,the paper evaluates the performance of diversification strategy and analyzes its reasons,and puts forward relevant optimization suggestions.This paper draws the following conclusions: Gree’s diversification strategy is more successful,but there are still shortcomings.This paper not only enriches the theoretical system of diversification strategy performance evaluation method,but also provides reference for other enterprises who want to implement diversification strategy.