The rapid development of diversification strategy in China has attracted much attention. There are so many companies succeeded but more failed through diversification. Diversification is the main strategy of Chinese business groups and has much influence on the performance of enterprises. Based on the existing literature of this theme, this paper has synthesized some conclusions from domestics and overseas to find out the relationship between diversified strategy and performance. After the review on these articles, we can find that related diversification outperforms unrelated diversification and single business strategy. So it is very urgent for Chinese business groups to return to the core competency and to gain international competitiveness.

A reasonable enterprise performance evaluation system not only is conducive to the scientific nature of enterprise internal management, but also can accurately reflect the shortcomings in development and provide effective guidance for the high-quality and efficient development of enterprises. Therefore, based on the relevant theories and research of performance evaluation and balanced scorecard (BSC), this paper analyzes the shortcomings of the current performance evaluation system of enterprises and the necessity and feasibility of applying BSC to design performance evaluation system. Then, we design a performance evaluation system with the characteristics of listed companies (LC). Finally, we use the analytic hierarchy process (AHP) to conduct a comprehensive performance evaluation of enterprise A and propose corresponding safeguards for the smooth implementation of the system according to the evaluation results.