Comparative Study Of Specialized Operation And Diversified Operation Of Keyi Factory

China's economy is in for a rapid growth period. But its industrial structure is irrational; the barriers between industries are small; the industries are too scattered; and most enterprises have not attained economies of scale, making them uncompetitive on the market. On the other hand, as China's accession to the WTO is close at hand, Chinese enterprises are facing strong competition by multinational corporations. Against this background, enterprises are easily lured by diversified operations. This paper, through comparative studies of the theories of specialized operation and diversified operations and by drawing on the successful experience of specialized operations and diversified operations at home and abroad, has solved the problem of concentrating on something while ignoring others so as to enable it to find an operational model best suited to its development according to the balancing relations between changes in the environment and internal conditions and cultivate its own core operation capacity, thus solving the problem of forming its own line of thought for development so as to prevent blind investment and excessive diversification. In this regard, the paper is of practical significance.The paper reviews in its Chapter One the theories of diversified and specialized operations. Chapter Two makes a comparative study of the GE of the United States, Philips of the Netherlands and Far East Group of Taiwan that are engaged in diversified operations and discovers that the success of diversified operations requires the following conditions: first, no matter what diversified operations they are, whether or not each operation can become a flagship or the flagship in your own region; second, whether or not each operation can find a strong head sheep. Without enough entrepreneurs, it is hard to succeed in diversified operations; third, whether or not you have enough other resources to support diversified operations. Besides, we must also pay attention to the structural adjustments of companies with diversified operations, with the emphasis of operation being shifted from general manufacturing to service and information industries. We must have a sober understanding of these restrictive conditions. Otherwise, diversified operations are doomed to failure.Besides, the study of specialized operations of the Yuanda Air-Conditioner Co. Ltd., Zaocun of Hong Kong and Guqiao Electric Appliances Co. of Beijing shows that all of them have paid particular attention to technical renovations, which are carried out within the trade established. With market and customers as the guide, they have all developed centering round their core businesses. They engage in specialized operations within their sub-markets, which can ensure their successes for the capacity and growth rather than obstructing their development. These are the market conditions for specialized operations. In their own trades, they are not competitive enough to extend to other operations. Otherwise, with dispersed resources and inadequate capacity, the venture into diversified operations is sure to weaken the competitive power of their core businesses, thus depriving them of the advantages of their main operations. These are the resources conditions for specialized operations. For enterprises with limited resources, concentration of energy on specialized operations would make it easier to succeed.The comparison of the two cases shows that an enterprise must opt for operational mode according its own particular economic environment and technical characters, taking into consideration both the long-term and immediate interests and both long-term and short-term investment, and integrating both diversified operations of the group and specialization of its members so as to achieve unified arrangements and planning and a coordinated development. Specialized operations provide the basis for diversified operations and diversified operations are the products of enterprise development at a given stage and the products of highly developed socialized produc...