Pathfinder Diversification Motivation And Performance Research

In recent years,Chinese economic growth has slowed down,and GDP growth has continued to decline.Beginning in 2012,the GDP growth rate was less than 8%.In 2019,the GDP growth rate dropped to the lowest point.Affected by the macro economy,competition among enterprises has become increasingly fierce.Market competition is becoming more and more fierce.In order to diversify business risks and seek coordinated business development,companies with surplus resources choose diversified operation.The ultimate goal of a company’s implementation of its business strategy is to improve its performance and increase its value.Therefore,analyzing the diversified operation strategy of company is a meaningful research topic.As a leading company in chinese outdoor products industry,TOREAD chooses a diversified business strategy when the market environment changes,but its diversified business performance is not good.Therefore,the dissertation selects it as the case analysis object,sums up its diversified experience,and aims to provide some practical experience for enterprises to implement diversified operation.First of all,based on the reasearch paradigm of Hoskisson and Hitt(1990),the dissertation takes "process→motivation →performance" as the frame,then sorts out the relevant literature research on the connotation,motivation and performance of diversified management,and proposes the related definition and theoretical basis of diversified operation.On this basis,the dissertation analyzes the influence mechanism of diversification on enterprise performance from two dimensions of positive effect and negative effect.Then,using the case analysis method to analyze the process and motivation of TOREAD implementation of diversification strategy,according to the relevant theoretical basic research,the motivation for its implementation of diversification investment strategy is obtained: use surplus resources to seek new profit growth points;disperse the risks brought by a single business;realize the synergy of multiple sector.Thirdly,the dissertation analyzes the performance of its diversified operation from two aspects: financial performance and non-financial efficiency.Through comparative analysis,it is found that its poor performance in diversified operation is manifested in the continued decline in the company’s share price;growth and profitability have declined,while the company’s investment efficiency has declined.The main reason lies in its tourism sector.And the investment achieve the purpose of using surplus resources to diversify corporate risks and achieve synergistic effects.Finally,the dissertation analyzes the problems existing in diversified operation of TOREAD,combining the analyzed problems,put forward relevant suggestions for the diversified operation of the enterprise: carry out diversified operations within the scope of its own capabilities;control the diversification process,and gradually develop from related diversification to unrelated diversification;develop diversification based on core competitiveness in diversified investment,pay attention to control the risk of impairment of goodwill;maintain the stability of the management and improve the management level.The dissertation hopes to study the motivation and performance of enterprise diversification from a theoretical and practical perspective,and to add new content to the research on enterprise diversification.