A Study On The Failure Of HNA Group's Diversification Management From A Financial Perspective

With the gradual acceleration of the process of global economic integration and the continuous circulation of technology,trade,financial capital and other resources,it has become a trend for enterprises to choose diversified operations to achieve industrial synergy and avoid risks.However,in practice,the effect of diversification is often not as expected,and may even bring financial risks.Hna group rapidly expanded its diversified operation volume,but caused a liquidity crisis.Finally,it sold assets and diversified operation failed.Enterprises often pay attention to whether to adopt diversified management,but ignore the problems that need to be considered and dealt with in the process of diversified management.Therefore,this paper takes the process of diversification of hna group as a sample of case study to discuss how to carry out diversification.In this paper,from a financial perspective to hna group from 2011 to 2019 half year,the diversification of development as the research object,through to the hna’s financial performance and operating performance of financial analysis and combining the theory of hna group diversification analysis of existing problems,put forward corresponding Suggestions for improvement of hna group,and intention to carry out diversified business enterprises need to consider in the process of implement and dealing with problems are suggested.The paper is divided into five parts:The first part introduces the research background and significance,research overview,research contents and methods,and innovation points.The second part introduces the concept of diversification,the form of diversification failure and the theoretical basis of diversification.The third part introduces the general situation of the case diversification,including:the introduction of the enterprise,the diversification map and the diversification degree,the analysis of the internal and external environment of the diversification operation by using PEST and SWOT analysis model,and the analysis of the diversification operation problems from the financial performance and business performance of the enterprise;The fourth part,based on the theoretical basis of diversified management,analyzes the reasons for the failure of diversified management of hna group from four perspectives:whether the diversified management can exert synergies,disperse financial risks,enhance the core competitiveness of the enterprise,and conform to the development life cycle of the enterprise.The fifth part introduces the conclusions and Suggestions.By summarizing the above analysis results,the paper draws a conclusion,and puts forward specific Suggestions on the current situation of hna group,and puts forward Suggestions on the enterprises that intend to carry out diversified management in advance,in the middle and afterwards.In the matter,the analysis of how to implement diversification;After the event,how to improve the governance of the part that has been expanded.