Research On Financial Risk Of Electronic Information Enterprises Under Diversification Strategy

Diversification strategy is one of the strategic ways for many enterprises to develop to a certain scale.Many enterprises implement diversification strategies to expand their business scale,occupy more markets,improve economic benefits and disperse business risks.In fact,the diversification strategy has both advantages and disadvantages.While bringing economic benefits to the enterprise,it may also bring many unknown financial risks to the enterprise.If it is not controlled,the enterprise may face serious financial crisis and even bring serious consequences of business failure.Therefore,only by truly identifying the financial risks under the diversification strategy and taking effective control measures can we truly realize the value of the diversification strategy.China’s research on diversification strategy mostly stays in real estate enterprises and Internet leading enterprises,and there is less research on other industries.Therefore,this paper selects the typical case of Founder group,an electronic information enterprise,as the research object.Founder Group has been expanding horizontally since 2000,involving many fields such as real estate,education,medical treatment,finance and securities.In February 2020,Founder group was applied for reorganization by Bank of Beijing,which declared the complete failure of Founder Group’s diversification strategy.In the process of implementing the diversification strategy,the lack of identification,prevention and control of enterprise financial risks is the main reason for the failure of Founder group in implementing the diversification strategy.Based on the literature related to diversification strategy,this paper takes the diversified development process of Founder group as the object to identify and analyze the changes of financial risk of Founder group before and after the implementation of diversification strategy,and puts forward corresponding control measures.Firstly,by combing the business status information related to the diversification strategy of Founder group,and combined with the diversification related business and development process,this paper makes an in-depth analysis of the motivation of Founder group to adopt the diversification strategy.Then,the financial risks in the process of implementing the diversification strategy of Founder group are identified through the two identification methods of qualitative identification and quantitative identification,and the identification results are analyzed with the help of the efficacy coefficient method to obtain the changes of the enterprise financial risk level before and after the implementation of the diversification strategy,so as to analyze the impact of the diversification strategy on the enterprise financial risk.Finally,according to the above calculation and analysis results,scientific and reasonable prevention methods and control measures are put forward.Finally,the following conclusions are drawn: first,the main purpose of Founder Group’s diversification strategy is to maintain the growth of enterprise economic benefits,improve competitiveness,disperse enterprise business risks and make full use of the remaining resources of the enterprise.Second,after the implementation of the diversification strategy,the overall financial risk index of Founder Group has increased,and its financing risk index has the lowest index value in the quantitative identification of financial risk,so the financing risk level is the highest.Third,Founder Group’s implementation of diversification strategy is too fast and its business choice is unreasonable.The enterprise lacks prudence in the overall analysis of diversified business,and the low level of internal governance and the lack of risk early warning system lead to the low profit level of diversified business selected by the enterprise,which is prone to large financial risks.The expansion speed in the later stage of enterprise diversification is too fast,which leads to the high debt ratio and huge debt repayment pressure.Fourth,Founder Group has high or low risks in the four abilities of financing risk,investment risk,operation risk and growth ability risk.Enterprises need to implement targeted control,such as establishing a scientific and reasonable enterprise risk early warning system,cultivating core competitiveness,improving internal governance,improving the level of risk control and allocating high-level professional talents.