The Study On Enterprise Financial Risk Under The Background Of Diversification Strategy

At present,China is in the early stage of the "14th Five-year Plan".In terms of sports construction and development,China takes the construction of sports power as its long-term goal.While the sports industry is highly concerned,related enterprises are developing rapidly like bamboo shoots after a spring storm.Enterprises adopt different business strategies in seeking breakthrough and development,among which diversification strategy is a common strategy for development or transformation of enterprises.Diversification strategy has double-sided characteristics for enterprises.On the one hand,it can bring favorable development results such as profit growth and scale expansion.On the other hand,blindly adopting diversification strategy may lead to higher financial risks and financial difficulties.After K-bird was listed in 2014,this paper selected diversified strategic business model,from traditional single sports shoes and clothing business to building and developing the whole sports industry chain,in order to occupy a leading position in related industries.However,its blindly excessive and frequent investment and acquisition behaviors failed to achieve high returns for the enterprise,but caused high financial risks due to its poor operation in various fields and the concentration of repayment period of large debts,and later caused delisting risks due to successive years of losses.Based on the concept of diversification strategy and financial risk,this paper takes K-bird enterprise as an example to sort out and summarize its diversified investment and acquisition events in recent years,and then makes statistics and analysis of its financial data in the past seven years since its listing.According to the analysis results of the selected model,the existence of financial risks in the enterprise is judged,and the specific quantitative analysis of financial risks is carried out to evaluate the annual operating status of the enterprise.The results show that there are serious financial risks in the K-bird enterprise from 2018 to 2020.The main problems of the K-bird are the single way of financing,low efficiency in the use of financing,high investment frequency,scattered investment fields,etc.Data analysis is combined with the actual operating conditions of the enterprise,and then causes of its financial risks are analyzed based on the four aspects of enterprise financing,investment,capital operation and business development.Through the causes of risk analysis,countermeasures to avoid the corresponding financial risks are proposed.Finally,the case study is summarized and the deficiencies are proposed.There are relevant studies on the relationship between diversified strategic operation and financial risk in the academic circle,but there are relatively few typical cases.Therefore,this paper selects the K-bird as a case study to improve the relevant academic area.As noble bird is the first sports related enterprises in domestic market,is also one of the few selection strategy of diversifying enterprise,noble bird enterprise in the strategy of diversifying operation experience and lesson is worth research,the research of this paper can be in the same industry the management and development of the enterprise to provide certain guidance,also has been in place for the upcoming or diversification strategy of enterprises to provide some reference.