Research On The Impact Of Strategic Transition Of XDF Group In The Context Of The Internet On Enterprise Performance

Coincident with the integration of Internet Plus initiatives and the education industry,the number of online education users has increased exponentially,a large amount of capital has poured into the field of online education,and the competition in the education and training market has been unprecedentedly fierce,forcing many education and training enterprises to transform and reform.XDF Group,as a leading enterprise in China’s education and training industry,is also affected by the tremendous impact of Internet informationization.In 2014,XDF Group implemented the "four circles" development strategy and carried out enterprise strategic transition,which improved the enterprise performance,but still encountered many problems such as low asset utilization and declining customer loyalty.This paper mainly analyzes the impact of strategic transition of XDF Group in the context of the Internet from the perspectives of financial performance and non-financial performance.Primarily,in terms of financial performance,the paper,based on the financial data of XDF Group from 2012 to 2018,vertically analyzes the profitability,operating ability,solvency and growth ability of XDF Group before and after the strategic transition.In the meantime,it is compared horizontally with the financial data of HWL Group,the biggest competitor of XDF Group,in the same period.This paper analyzes and finds the problems existing in the enterprise.The findings can be briefed as follows.As for profitability,the net interest rate of assets is not high.In view of operating capacity,XDF Group boasts higher operating efficiency and lower operating risk whereas the turnover rate of current assets decreases slightly and the turnover rate of total assets decreases gradually.From the perspective of solvency,XDF Group has very strong solvency.The liquidity of the enterprise is sufficient and the ability to protect the interests is strong.As for growth ability,the enterprise operating income also increases,and the operating profit margin is not high.Moreover,the analysis of non-financial performance is conducted through a questionnaire survey of student and employee satisfaction,from such dimensions as customer,internal operation process,learning and growth to analyze the changes of non-financial performance before and after the strategic transition.The findings can be listed as follows.In the dimension of customer,customer loyalty is low.In the dimension of internal operation process,online courses can help to improve the work efficiency of employees.As for learning and growth,the strategic transformation helps to promote employee growth and development.The research illustrates that the strategic transformation of XDF Group has exerted a positive impact on enterprise performance,and such problems are found: asset utilization rate and net interest rate of assets are not high,and customer loyalty decreases.The Group should expand its business scope,stimulate customer demand,and increase the number of customers in order to improve asset utilization.It is suggested to adjust the organizational structure and reduce operating costs to increase operating profits.Staff training should be strengthened in an effort to enhance customer experience and customer loyalty.