Research On Diversification Motivation And Performance Evaluation Of PZH Company

In recent years,with the increasing degree of global integration and the rising market economy,enterprises are facing increasing competitive pressure.Many enterprises try to improve their competitiveness by implementing diversified management strategy.However,some enterprises have achieved leapfrog development through diversification,while some enterprises are gradually declining because of diversification.It can be seen that the results of diversification practice of different enterprises are different,and the impact of diversification on enterprise performance still needs to be analyzed by specific enterprises.Based on this,this paper selects PZH company as the research object to deeply study its diversification motivation and diversification performance.The research ideas of this paper are as follows: firstly,sort out the relevant literature at home and abroad and clarify the concept of diversification,the classification and measurement methods of diversification and the concept of enterprise performance;Secondly,it expounds the general situation of PZH’s diversification from three dimensions: the type of diversification,the process of diversification and the degree of diversification,and analyzes its diversification motivation combined with relevant theories;Thirdly,the professional operation comparison enterprise group is selected as a reference to analyze and evaluate the diversification performance of PZH company from three aspects: financial indicators,enterprise value and the realization effect of diversification objectives;Finally,according to the diversification practice experience of case enterprises,this paper summarizes some enlightenment to provide reference for the diversification of other enterprises.Through the research,this paper draws the following conclusions:(1)the number of business units of PZH company has increased to 4 by 2019,and the Herfindahl index has reached 40.97% in 2019,with a high degree of diversification.The main motivation for PZH company to implement the diversified transformation strategy is to give full play to the advantages of resources,disperse business risks,create new profit growth points,create synergy and the strong rise of big health industry.(2)From the three aspects of financial indicators,enterprise value and the realization effect of diversification objectives,diversification has played an obvious role in promoting the performance of PZH company.(3)According to PZH’s diversified practical experience,we get some enlightenment,such as stabilizing the main business,cultivating core competitiveness,paying attention to diversified strategic planning,preventing blind expansion and promoting diversification at a steady pace.