| With the rapid growth of the economy,in order to improve their performance and overcome development bottlenecks,many enterprises in some traditional industries have adopted cross-industry mergers and acquisitions,fully combining the external environment and their own real world conditions,and constantly seeking new profit breakthroughs,thereby reducing its own business risks.In this context,cross-industry mergers and acquisitions have gradually become the focus of many companies wishing to transform.Relevant issues such as the choice of a transformation industry and the impact of strategic transformation on business performance have become the core of the transformation.The case company selected in this article is Milkground,which was Shandong Hualian Mining,which was mainly engaged in mineral trading before processing.Research on financial performance before and after the company’s strategic transformation is representative.This article first clarifies the background and importance of the research,and outlines related concepts and theories of strategic transformation and financial performance.Second,the overview of the development and processing process of the iron ore industry and the dairy industry in the early,middle and advanced stages of processing are presented,and the specific implementation of the process of transformation of Milkground is described.macro-environmental factors before the first stage of business transformation.The analysis shows that the downstream steel industry is affected by macroeconomic policies.Since iron ore is monopolized by international giants,the price of iron concentrate continues to fall,and the company has natural resource reserves.Adverse factors in the macroeconomic environment,such as rising mining costs,will cause enterprise performance to decline,and the development of the ore industry has entered the winter period.Therefore,companies urgently need to cultivate new profit growth points.At the same time,benefiting from the transformation and upgrading of the consumption structure,the dairy industry has huge development space in China.This is why the company decided to carry out the first stage of strategic transformation,transforming the dual main business of "mineral + dairy products".Later,due to the large scope of the dual main business,it was difficult to integrate resources,and the performance gap between the dual main business was too large,and the original main business was seriously slowed down,so that the company carried out the second stage of transformation,eliminating the original main activity and completely transforming into a large cheese dairy company.Third,this article evaluates the M&A behavior and strategic implementation results of Milkground in two stages from a performance perspective,and compares and analyzes horizontal financial indicators with the industry average of the same industry before and after the transformation,then analyzes them from the perspective of the evolution of the financial characteristics Use the financial performance in stages to evaluate the results of the strategic transformation of the company,it can be seen that the company’s strategic transformation is successful,the development prospects of the dairy industry are broad,the company’s profitability,growth capacity and operational capacity have been greatly improved,but its solvency has weakened.Study through this article,the following conclusions can be drawn: First,business transformation has improved their financial performance.Second,when the original lead company encounters operational difficulties,it is possible for companies to improve their capabilities through cross-industry mergers and acquisitions.Third,financial performance can be used to measure the effect of implementing strategic business transformation.Through researching this article,it can provide a reference for companies that have encountered business difficulties and attempted to seek new business directions through transformation. |
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