Research On The Performance Of BYD’s Diversified Operation Based On The Combination Of EVA And Five-dimensional BSC

With the increasing demand for automobiles in the domestic market,the competition between domestic and foreign automobile enterprises has gradually intensified.At the same time,China has a shortage of non-renewable energy and environmental problems.The government has actively introduced relevant policies to support the development of new energy industries in order to promote the sustainable development of the national economy.The case company BYD selected in this paper conforms to the trend of the times and implements diversified operations into new energy vehicles and other fields.According to its profit growth and risk dispersion,BYD can be described as a successful case of diversified operations,but its performance is also unstable and unsustainable.Therefore,this paper uses a more comprehensive performance evaluation system to analyze its diversified operation effect,in order to summarize the successful experience and optimization suggestions of BYD ’s diversified operation.The research ideas of this paper are as follows : Firstly,the relevant concepts and theoretical basis are clarified,and the general situation of BYD ’s diversified operation is expounded from three aspects : the development process,type and degree of diversified operation and macro environment analysis.Then,the motivation of diversified operation is analyzed,and the mechanism of diversified operation on enterprise performance is sorted out.Secondly,this paper discusses the current situation and problems of BYD ’s existing performance evaluation system,selects the performance evaluation method combining EVA and five-dimensional BSC,and subdivides the overall goal of diversified operation into five dimensions of finance,customer,internal process,learning and growth,and social responsibility from the perspective of enterprise strategy.Thirdly,28 final evaluation indexes including EVA are selected to construct a diversified business performance evaluation system based on EVA-five-dimensional BSC.Multi-dimensional performance analysis is carried out by using the data of two stages of diversified solid accumulation and comprehensive upgrading from 2016 to 2021,and the entropy method is used to calculate the annual comprehensive performance score.Finally,the research conclusions and case implications of this paper are summarized.Through case studies,this paper finds that the comprehensive performance scores of BYD ’s diversified operations from 2016 to 2021 show a positive U-shaped distribution,in which the profitability and development capacity performance of the financial dimension show a trend of decreasing volatility,while the long-term solvency and operating capacity gradually increase after the trough in 2019,showing a positive U-shaped change as a whole,and the short-term solvency continues to weaken as a whole.In the non-financial dimension,the performance of the customer,learning and growth dimension is generally good,the performance of the internal process dimension is positively U-shaped,and the performance of the social responsibility dimension rises rapidly after short-term fluctuations.Based on this,this paper puts forward the successful experience and optimization suggestions of BYD’s diversification,in order to provide reference for other enterprises to implement diversification.About its successful experience,including rich product matrix,accurate positioning,the whole industry chain layout,strict cost control,the national channel store layout;the optimization suggestions include strengthening the main business,appropriately divesting low-contribution business,improving solvency,improving capital structure,improving the monitoring system of market environment changes,continuously optimizing brand image and improving the overall competitiveness of enterprises.