| With the increasing competition in the market and changes in the industry environment,it is difficult for enterprises operating only a single business to sustain a competitive advantage in the market,and many of them have chosen to promote diversified businesses.Among the many diversified enterprises,some have achieved the expected results and successfully laid out diversified industries,but at the same time,some diversified enterprises have lost out in the market competition and fallen into financial difficulties leading to corporate restructuring or even bankruptcy and liquidation.The successful promotion of diversification strategy can reduce the degree of profit fluctuation;integrate existing resources,reduce the operating costs of enterprises and achieve operational synergy;enhance the market power of enterprises,increase the development potential of enterprises and provide new breakthrough points for the sustainable development of enterprises in the future.At the same time,inappropriate diversification strategies may also increase the agency costs of enterprises,negatively affect their cash flow,disperse their resources and damage their value.Therefore,whether and how to promote diversification has become an important research direction.Taking Fosun Group as a research sample,the article firstly analyses and summarises the promotion process of Fosun Group’s diversification strategy on the basis of combing the literature related to diversification strategy,summarising the definitions and theories related to diversification strategy,corporate strategy promotion and performance evaluation.Secondly,the effects of Fosun Group’s diversification promotion are analysed from two perspectives: market performance and strategic performance.Nine landmark events in the process of Fosun Group’s diversification expansion are selected and the cumulative excess returns of key events are measured to analyse the short-term market performance during the implementation of the diversification strategy.The analysis of the Fosun Group as a whole,its major segments and representative subsidiaries was carried out from the perspective of financial performance,brand and market,internal business process efficiency and learning and growth capability,to form a comprehensive evaluation of the performance of the Fosun Group.Lastly,the analysis combines risk diversification theory,synergy theory and market power theory to summarise the impact paths of strategic advancement on Fosun Group’s performance and make corresponding recommendations based on the impact paths.Through the analysis of theories and cases,it is found that although the implementation of Fosun Group’s diversification strategy has reduced the degree of profit volatility,increased the Group’s brand value and market share of some businesses,improved the technological research and development capability of some businesses,and promoted talent training,there are also problems of poor market performance at the early stage of strategy advancement,the choice of strategy advancement methods has increased financial risks,and the speed of advancement has led to However,there are also problems such as poor market performance at the early stage of strategy promotion,increased financial risk due to the choice of strategy promotion method,and reduced management efficiency due to the speed of promotion.In response to the above problems,the article proposes improvements based on the construction of an impact path to focus on in-depth industrial operations on the basis of the basic completion of the internal industrial layout,continue to enhance the competitiveness of existing segments,be cautious about the expansion of non-related diversified businesses,control risks by means of reasonable control of debt ratios,expand diversified financing channels and optimise corporate management efficiency by improving the internal management system and continuing to strengthen the construction of talent teams The recommendations are intended to serve as a reference for other enterprises promoting diversification strategies. |
