Case Study On Financial Performance Under The Refocusing Strategy Of LMZ Co.,Ltd

In the context of China’s rapid economic development,many domestic companies have chosen diversification strategy to achieve rapid expansion in order to seek greater profits.However,due to the pursuit of diversification,many companies have dispersed their resources and failed to form their own core competitiveness in many business fields,resulting in business difficulties.Therefore,refocusing strategy becomes the first choice of the company after the failure of diversification,so that the company can return to the main business and enhance the core competitiveness,so as to stand firm in the current fierce domestic and international competition.This thesis mainly adopts literature analysis,case study and event study,with LMZ Co.,Ltd.as the specific research object,to evaluate the financial performance changes before and after implementing the refocusing strategy,and obtain inspiration and reference for the company’s refocusing.On the basis of elaborating on the relevant theories of the refocusing strategy and the process before and after the implementation of the refocusing strategy of LMZ Co.,Ltd.,the financial situation of LMZ Co.,Ltd.was analyzed,and the motivations for the company’s refocusing strategy were deeply analyzed from four dimensions: reducing diversification,allocating resources reasonably,focusing on its main business,and adjusting the internal capital market.By comparing and analyzing the value creation ability of the company after the implementation of the refocusing strategy through EVA indicators,research and development investment,changes in shareholder wealth,and other financial indicators,the impact of the refocusing strategy on the company’s operational performance was obtained.By analyzing the main business and measuring the efficiency of the internal capital market,the financial performance after the implementation of the refocusing strategy is analyzed.The competitiveness of its main business and the reasonable and effective allocation of its internal capital market are analyzed.The main drawbacks of the implementation of the refocusing strategy in the case company are: lack of clear strategic planning main line,insufficient value creation ability,low R&D investment of the company,and unreasonable debt structure Failure to fully leverage the role of internal capital markets,etc.Drawing inspiration and inspiration from relevant theories and cases: long-term adherence to the refocusing strategy;Strengthen R&D investment capacity;Utilize the company’s own advantages;Prioritize the cultivation of core competitiveness;Adjusting the asset liability ratio;Improving value creation ability;Reasonably allocate internal capital;Strengthen the management of the company’s main body.The research results of this thesis have certain enlightenment for related companies to implement refocusing strategy,and have certain reference value for companies to effectively improve corporate management and enhance core competitiveness.