A Case Study On The Implementation And Performance Evaluation Of Jilin Chemical Fiber Refocusing Strategy

Since the concept of diversification strategy was proposed,it attracted wide attention,and was regarded as an important magic weapon to cope with external risks and achieve group development.However,excessive pursuit of diversification also brings hidden risks such as dispersing corporate capital,weakening enterprises’ core capabilities.As a correction of wrong diversification,the concept of refocusing strategy was put forward.This thesis selects the case of Jilin Chemical Fiber Co.,Ltd.(hereinafter referred to as "Jilin Chemical Fiber")which implemented the refocusing strategy in 2013 as the study object.Based on the analysis of its external environment and financial situation of Jilin Chemical Fiber,it is concluded that the motivation of implementing the refocusing strategy is mainly to adapt to the competitive situation of the industry and get rid of the business difficulties caused by excessive diversification.Through the performance evaluation of Jilin Chemical Fiber after the implementation of the refocusing strategy,it is found that its economic added value shows a trend of sustained growth,and its overall operating situation has been improved.This thesis also uses the EVA-BSC strategic performance evaluation model to comprehensively evaluate the enterprise performance of Jilin Chemical Fiber from four perspectives: Financial,Customer,Internal Processes,Employee Learning and Growth.It is found that after the implementation of the refocusing strategy,Jilin Chemical Fiber’s profitability has been greatly improved,its operating ability and debt-paying ability have been improved,its customer stickiness has been strengthened,its internal management level has been obviously improved,its innovation and growth ability have been rapidly improved,and its core competitiveness have been strengthened.At the same time,Jilin Chemical Fiber still has some problems in the process of implementing the refocusing strategy,such as unreasonable financing structure,insufficient R&D investment,deviation in strategy implementation,etc.Through in-depth analysis,this thesis gives an objective evaluation of the role of the refocusing strategy in helping Jilin Chemical Fiber get rid of the dilemma of diversification,and affirms that Jilin Chemical Fiber grasped the opportunity in time and chose the core business reasonably in the process of implementing the refocusing strategy.This thesis puts forward suggestions for the problems existing in the process of implementing the refocusing strategy of Jilin Chemical Fiber.First,to improve the financing structure and carry out diversified financing;Second,to increase the proportion of R&D investment and improve the independent innovation ability in core business areas;Third,to formulate long-term plans and continue to shape the core competitiveness of enterprises.In view of the current more complicated external environment,returning to the main business has become a strategic choice for more and more enterprises.Although the case selected in this thesis is early,it is still highly representative.The conclusions of this thesis are expected to provide useful practical experience for other enterprises in this industry to implement the refocusing strategy in order to concentrate resources for developing main business and strengthening core competitiveness of enterprises.