Research On Financial Performance Of TCL TECH. Refocusing Strategy

In recent years,with the acceleration of economic globalization and the continuous development of knowledge economy,the global economic form and international competition pattern are also undergoing profound changes,and the global industrial development and competition are intensifying.Focusing on core business is a necessary condition for an enterprise to maintain long-term and healthy development,which is not only a new trend under the background of globalization,but also the demand of the times for enterprise development.More and more enterprises begin to rebuild their core competitiveness through refocusing strategy to ensure the sustainable and healthy development of enterprises.TCL TECH.was once a well-known enterprise in China’s home appliance industry.In 2017,the company began to implement the refocusing strategy,focusing on the semiconductor display industry and transforming into a global intelligent technology group.Based on the above background,on the basis of combing the literature related to the refocusing strategy and financial performance,this paper adopts the paradigm of case study and takes TCL TECH.as the case study object.Firstly,it analyzes the motivation of TCL TECH.to implement the refocusing strategy.Secondly,by using the enterprise core competence theory and the enterprise value chain analysis method,It constructs the implementation path of the refocusing strategy of identifying core competence-determining core business-selecting the refocusing strategy mode-coordinating and integrating business elements.Finally,it evaluates the impact of the refocusing strategy on TCL TECH.’s financial performance from the two aspects of financial index analysis and value creation ability,summarizes the experience and shortcomings of its refocusing strategy,and puts forward corresponding suggestions and Countermeasures for the deficiencies in the implementation of its refocusing strategy.The research results show that the impact of the external environment faced by TCL TECH.and the numerous crises in the internal operation of the enterprise are important reasons for its implementation of the refocusing strategy.TCL’s implementation of the refocusing strategy has a significant effect on improving the financial performance of the enterprise as a whole,but the promotion of the refocusing strategy has the problems of weak short-term value creation ability and high pressure on the overall solvency.Finally,the enlightenment and suggestions are obtained through the case,in order to provide reference for TCL TECH.and enterprises that also have the same vision of implementing the refocusing strategy.