Reserch On Transformation And Effect Of Non-related Diversified Business Of Shanshan Co.,Ltd

China is currently undergoing a period of high-caliber economic growth and restructuring of its industrial structure.,the original diversified business structure is difficult to satisfy the requirements of long-run development of enterprises with the alterations in the external market and the internal functioning of businesses,Realizing transformation and upgrading from traditional industries to high-tech industries has become the choice of many enterprises.Diversified business transformation is divided into two categories:related diversification and non-related diversified business transformation according to the correlation between the businesses operated by the enterprise.Because the transformation of non-correlated diversified business will face problems such as resource allocation and risk control in new fields,few enterprises have successfully achieved non-related diversified business transformation in practice.As the first listed garment company in China to the leader in the polarizer industry today,Shanshan Co.,Ltd.The importance of examining the transformation process and outcome is immense,as it serves as a model for successfully transitioning from one non-correlated diversified business structure to another.Based on the resource base,core competitiveness and risk diversification theory,this paper conducts a case study on the transformation of Shanshan non-related diversified business according to the research idea of "motivationpath-effect".Firstly,the external expansion and internal optimization drivers of Shanshan Co.,Ltd.’s non-related diversified business transformation are analyzed in the case of considering the internal and external environment.Secondly,the non-relevant diversified business transformation process of Shanshan Co.,Ltd.is analyzed in detail,and the key points worth noting are refined and summarized when analyzing the transformation process: the rational arrangement of the spin-off and listing plan in the early stage of transformation is to determine the core business advantages and transformation direction;In the mid-term of transformation,the active layout of the non-core business equity sale plan is to strengthen the advantages of the core business and enrich the cross-border resource reserve;The rapid completion of crossborder acquisitions in the late stages of transformation is intended to accelerate the cultivation of new growth poles.Then,this paper comprehensively evaluates the transformation effect of Shanshan Shares’ non-related diversified business from both financial and non-financial aspects,and in terms of finance:business restructuring significantly enhances the profit level,develops new businesses significantly increases the growth rate of enterprises,optimizes business structure to improve enterprise turnover rate,and stabilizes the debt repayment level of enterprises through business adjustment;In terms of nonfinancial aspects: after the spin-off and listing adjusted the business plan,the focus of development was clarified,the equity sale plan was laid out,a buffer period was added for the transformation,and cross-border acquisitions consolidated the market leading position and expanded the scope of the industrial chain,accelerating the integrated layout.Finally,the conclusion of the successful transformation of non-related diversified business of Shanshan Co.,Ltd.is concluded,the research enlightenment and research prospects of the thesis are proposed.