Diversified business failure cases

Question 1: Examples of companies failing due to diversification. I remember that when Nokia launched other TVs, it failed. Because corporate diversification does not mean the same user trust. Later they learned that only The right thing to do is to seriously mess with their mobile phones.

Question 2: Failure case of corporate diversification Yamaha Company: pulling back from the brink Across the world, "Yamaha" is almost synonymous with musical instruments, and it especially enjoys a reputation in the production and sales of pianos. In the early stages of Japan Yamaha's business expansion, brand expansion did not depart from its original expertise. For example, the production of guitars, trumpets, violins and electronic keyboards can all benefit from the company's original technology and the exquisite craftsmanship of its workers. But then Yamaha borrowed heavily and ventured into many unfamiliar areas, such as tennis rackets, televisions, video recorders, audio equipment, motorcycles, ski scooters, and yachts. Due to excessive diversification away from the original industry, the company did not understand the foundation and advantages of the company, and it expanded too quickly. Its management, technology, and experience could not keep up, causing the company to almost fall into a pit from which it could not extricate itself. After 1990, Yamaha's profits showed a downward trend and it fell into a debt crisis. Fortunately, the company's leaders woke up and stepped back from the brink. Under the leadership of the current president, Yamaha re-adjusted its business strategy and still focused on the core business of musical instruments, allowing Yamaha to get out of the predicament and regain the lost market. .

Question 3: Looking for cases where Chinese enterprises’ diversified business strategies failed! 5 minutes transfer failed, wrong account password, account frozen

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Question 4: Find cases of unrelated diversification strategies and the reasons for their success or failure. 5 points. GE is a typical success case. The main reasons for success are 1. CEO Welch’s leadership ability, 2 . three circle concept, 3. The principle of number one and number two

Question 5: Who can provide some cases of failure of blind expansion of once-famous enterprises in China? 1. Yamaha Company

Around the world, "Yamaha" is almost synonymous with musical instruments. It especially enjoys a reputation in terms of piano product sales.

In the early stages of Japan Yamaha's business expansion, brand expansion did not depart from its original expertise. For example, the production of guitars, trumpets, violins and electronic keyboards can all benefit from the company's original technology and the exquisite craftsmanship of its workers.

But then Yamaha borrowed heavily and ventured into many unfamiliar areas, such as tennis rackets, televisions, video recorders, audio equipment, motorcycles, ski scooters, and yachts. Due to excessive diversification away from the original industry, the company did not understand the foundation and advantages of the company, and it expanded too quickly. Its management, technology, and experience could not keep up, causing the company to almost fall into a pit from which it could not extricate itself. After 1990, Yamaha's profits showed a downward trend and it fell into a debt crisis. Fortunately, the company's leaders woke up from their dreams and stepped back from the brink. Under the leadership of the current president Ueshima, Yamaha re-adjusted its business strategy and still focused on the core business of musical instruments, allowing Yamaha to get out of the predicament and regain the lost value. market.

2. Adidas Company

The German Adidas Company is a large multinational company that produces sports shoes. Since Jesse Owen won the 100-meter gold medal in the 11th Olympic Games by wearing Adidas running shoes, It has repeatedly expanded its market, established a large number of branches around the world, and set foot in many new fields. The global market coverage soon reached more than 80%.

Bowerman in the United States took advantage of Adidas' repeated market expansion opportunities, devoted himself to studying its production and operation characteristics, and seized the opportunity of the rise of global running and fitness craze to fully imitate Adidas's production and operation methods, relying on the product's Novelty and quality quickly established a reputation in the sports world. However, Adidas's weaknesses are becoming more and more obvious due to its large business, long front line, and products that cannot adapt to all levels of consumption. At this time, its management and experience cannot keep up, and the quality of its people cannot keep up with the rapidly expanding needs, thus putting the company into a dilemma. Due to the debt-ridden and difficult situation, he was pushed out of the throne of alliance leader.

3 Claiborne Company

According to the US "Fortune" magazine: In 1993, Claiborne Company's growth rate was almost zero, profits shrank, and stock prices fell. What happened to the largest women's clothing manufacturer in the United States, with an annual turnover of US$2.7 billion? The reason is that its diversity level is too broad. From the original fashionable clothing for working women, it suddenly expanded to large-size clothing, small-size clothing, accessories, cosmetics, men's clothing, etc. In this way, Claiborne also faced the problem of over-diversification. The company's managers began to be unable to master the core products, and a large number of products that did not meet market demand prompted many customers to drift away, and the company suffered serious financial losses.

After the new chairman Jero Xiaren took office, he refocused his business on ready-made clothing for working women. In order to respond to the needs of consumers again, Xiaren emphasized the rigorous design, fit and quality of products. These senses of value have enabled it to create top-notch sales results in many department stores

Question 6: Is Shanghai Baosteel Group a case of failure in its diversification strategy? 10 points I really didn’t know that Baosteel has diversified. Its core business has always been steel.

If you want to talk about the failure of diversification, Youngor is really worthy.

Question 7: A brief analysis of the causes of the failure of "Chundu", a well-known foreign-funded enterprise in China. One success and one failure.

On October 4, relevant leaders of the State Council reviewed the failure of Chundu Instructions were given. The leaders believe that it is a tragedy and a joke that Chundu is in desperation. Let all sectors of society know about it, and jointly discuss why a prosperous state-owned enterprise has reached this point.

There were miracles in Spring City. When talking about ham sausage, who wouldn’t think of Chundu? Since producing my country's first Western-style ham sausage in 1986, Chundu has become popular in most of China with its "dancing ham sausage", with a market share of over 70% and assets of 2.9 billion yuan. However, after only a few years of brief glory, this star company suddenly fell into a trough. Today, hundreds of production lines in Chundu have been shut down. The company has lost as much as 670 million yuan and owes a huge debt of 1.3 billion yuan. The scenes of bustling traffic and busy streets in the past are just beautiful memories of the people of Chundu.

What created the miracle of Spring Capital?

The predecessor of Chundu Group was Luoyang Meat Factory, which was founded in 1958. Under the planned economic system, it was unremarkable for decades. In 1986, after analyzing and inspecting the domestic and foreign meat product markets, Gao Fenglai, the head of Chundu, made a decisive decision to change his original business situation of solely engaging in pig slaughtering and storage business, deep-process pork, and develop high-temperature meat product production and processing business. It was the first to introduce a Western-style ham sausage production line and produce China's first ham sausage, which quickly became popular in the market. Sales revenue and profits doubled year after year, and huge economic benefits were achieved. The scale of the company became larger and it achieved sustained development.

By the early 1990s, Chundu had become a well-known large-scale meat product production and processing enterprise in China with revenue exceeding 1 billion yuan and profits exceeding 100 million yuan. "Chundu" ham sausage has been rated as "National Famous Brand Product" and "Famous Trademark" many times, and has almost become synonymous with Chinese ham sausage.

Chundu’s success during this period is undoubtedly due to its correct strategic decision-forward integrated development strategy.

What caused Chundu to decline?

Perhaps success came too easily. The minds of Chundu’s managers began to expand and heat up. Local leaders also demanded that Chundu “become bigger and stronger” as soon as possible, which played a role in fueling the situation. In a relatively short period of time, they invested heavily in a number of business projects such as medicine, tea beverages, and real estate, and acquired and merged across regions and industries, including Luoyang Xuanggong Building, Pingdingshan Meat Factory, and Chongqing Wanzhou Food Company, etc. 17 A company with no hope of turning around its losses has made its business scope include pig slaughtering and processing, cooked meat products, tea beverages, medicine, hotels, real estate, wood processing, commerce and other industries, embarking on a path of diversification and simultaneous development. The enterprise's business projects are complex, have low correlation with each other, and have no connection with its original main business. Moreover, the investment time is very concentrated, and the "development" is rapid for a while.

In terms of assets, Chundu's assets have increased at an average rate of nearly 6 times every year, rapidly expanding from 39.5 million yuan in 1987 to 2.969 billion yuan. The scary thing is that this rapid expansion not only failed to bring benefits to Chundu, but also put a heavy burden on the company. Of the 17 companies that Chundu merged and acquired, more than half suffered losses and nearly half closed down and stopped production, which undoubtedly made matters worse.

In August 1993, Chundu carried out joint-stock reform on the basis of the original Luoyang Meat Factory and established Chundu Group Co., Ltd., and raised 100 million legal person shares from 432 shareholders, raising nearly 2 billion. Having a lot of money is a good thing if you use it right, but if you use it wrongly, it can be a disaster. At this time, Chundu used this money to blindly diversify, first investing more than 10 million yuan to participate in the operation of 8 companies, and then investing 150 million yuan to control and operate 16 companies, which turned out to be a big burden.

In September 1994, Chundu established a joint venture with five foreign investors including the American Baoxing Investment Company, attracting foreign investment equivalent to RMB 290 million. However, after the joint venture, the foreign party discovered the problems in Chundu and found reasons to withdraw investment in 1997. According to the agreement, Chundu suffered a loss of more than 100 million yuan at a time, including principal, interest and dividends.

In December 1998, Chundu Group, which was already suffering heavy losses, decided to reorganize part of the group's assets and go public, raising 424 million yuan. The major shareholder Chundu Group and the listed company Chundu Food Co., Ltd. are actually one team, two brands, and their personnel, assets, and finance are not separated at all. In the third month after listing, Chundu Group withdrew 190 million yuan of raised funds from the listed company to repay other debts. Since then, it has successively "paid for occupation" of several funds from the listed company, totaling up to 330 million yuan, accounting for 10% of the listed company's total amount of funds. 80 of the total amount of funds raised, resulting in the 10 major investment projects that listed companies have promised to the public...gt;gt;

Question 8: Why do most companies develop to a certain scale? There are many examples of companies that will choose diversification to develop successfully in a single direction, such as Coca-Cola, Toyota, McDonald's, etc. There are relatively few successful cases of diversification.

The main disadvantages of diversification are: first, the management...gt;gt;