Research On LHJK Strategic Transformation Under The Background Of General Health

With the rapid economic development and the continuous improvement of the national income level,the state has vigorously promoted the development of the health industry,and many policies have promoted the development of the industry.At the same time,the public has paid more attention to health.With the increase of the elderly population and the relaxation of the two-child policy,the demand gap in the health industry has been increasing.If the big health industry is on the rise,it is the only choice for enterprises in need of transformation to move into the big health field.At the same time,the environmental protection policy is tightened,MSG products are cold,prompting many MSG production enterprises to develop new product lines or implement strategic transformation into new fields.The starting point of this paper is how traditional enterprises realize strategic transformation by taking advantage of the "big health" era background.This paper selects LHJK,a traditional monosodium glutamate leading enterprise in China,as the case study object.Firstly,SWOT analysis method is used to analyze the motivation of its transformation and judge the correctness and necessity of its transformation.Then,financial and non-financial performance analysis and economic value added method are used to evaluate its transformation performance and explore whether the strategic transformation is successful or not.Finally,through the difficulties faced by enterprises since the transformation and the results of the transformation measures,the problems existing in the transformation are analyzed and suggestions are put forward.Analysis shows that the transformation of LHJK is a favorable attempt to combine the original accumulation advantages of the enterprise and conform to the national key development direction,aiming at creating new sources of income and sharing industrial risks.This strategic transformation is very necessary for the enterprise.But the shift in performance has not been a mark of success,financial performance and non-financial performance,poor profitability,floating,low price,the stock market of strategic transformation event feedback early late positive negative,the added value of economic performance is negative didn’t reach new value creation,comprehensive look at this stage transition,temporarily unable to realize its transformation.This paper aims to reveal some key problems faced by traditional enterprises in the process of strategic transformation and provide reference experience for other traditional enterprises in the process of strategic transformation.Based on this case,the following suggestions are put forward: Before the transformation,assess the enterprise’s own development and possible risks and challenges in the future,and ensure that the enterprise is fully prepared for the strategic transformation before implementing the transformation.At the initial stage of transformation,a feasibility plan should be made to refine the implementation steps,and timely adjustments should be made according to the actual situation to avoid unnecessary waste of resources.Increase r&d investment in the middle of the transition to make the company more competitive in the new market.