Study On The Path And Effect Evaluation Of Salt Lake Stock Under Refocusing Strategy

With the increasingly fierce market competition,the survival and development space of enterprises is constantly being challenged.Many enterprises seek new business growth points to diversify risks,but risks and benefits coexist.More and more enterprises are trapped in financial difficulties due to excessive diversification.In this context,more and more enterprises have realized the importance of implementing a refocusing strategy.For enterprises in financial difficulties,implementing measures to overcome difficulties under the refocusing strategy is a very wise measure.By divesting non core businesses with losses,focusing on core businesses,and subsequently conducting investment activities around core businesses,it can quickly reconstruct the core competitiveness of the enterprise and restore its business performance.At the same time,China’s economy has now moved from a stage of rapid growth to a stage of high-quality development,and we need to focus more on "highlighting our main business and improving our professionalism".The report of the 20 th National Congress of the Communist Party of China also proposed that state-owned enterprises should focus on their main responsibilities.In this context,this article selects Salt Lake Corporation as the case study object.Salt Lake Corporation,as the “king of potassium fertilizer”,suffered huge losses at one point,but its business performance was greatly improved by implementing measures to alleviate difficulties under the refocusing strategy.First of all,the company is introduced and summarized.Through analysis,it is found that due to the influence of multiple factors of internal and external environment,the financial situation of the company is tight,the payment is difficult,and the company falls into debt default.Secondly,the analysis finds that because the enterprise has the conditions and opportunities to implement the refocusing strategy,the enterprise first carries out the refocusing contraction stage: complete the debt repayment,stripping off the loss assets;Then carry out the refocused expansion stage: strengthen the core business,promote the stepwise development and utilization of resources,and improve the governance capacity.Thirdly,from the single and comprehensive aspects,the research found that the operating performance of Salt Lake Shares has been significantly improved,the conclusion is that the internal and external influences caused the financial distress;Under the refocusing strategy,the escape path effectively improves the financial situation of the enterprises;The success of the enterprise lies in choosing the right path to get out of trouble.However,due to its shortcomings in accounts receivable,liabilities and other aspects,the following suggestions are put forward that enterprises should strengthen accounts receivable,management,pay attention to optimize the structure of enterprises and improve the level of project investment management.Finally,according to the results of case analysis,the relevant enlightenment is obtained.It is hoped that this paper can provide reference for the enterprises which get into financial difficulties due to the failure of diversification strategy to implement the measures to get out of difficulties under the refocusing strategy.