Strategic Investment Of XX Corporation

As the globalization of economy came into reality, it is possible to share the information and resource in the market .On one side it has brought serious pressure of competition to company. On the other side, it also has brought more opportunity to invest in corporation. And it makes the competition of corporation branded by decision economy more and more under the new economic situation .At the same time, the competition displays some new characteristics as follows:The globalization of economy incites the socialization of competition, and it has shown that the competition in future will happen in the area of strategic investment.In the decision economy time, the competition of strategic investment will be that of opportunity choosing. Capital operation has been practiced more and more by corporation——the giant corporation owning abundant capital and certificated corporation especially.The globalization of information, fortune and resource will necessitates the globalization of market opportunity, and it shows that the competition among corporations will be expanded abroad that is to meet the challenge against more broad market backgroundStrategic investment is a process that goes through the birth, growth and transform of corporation and it directly sometimes even decisively affect the vigor and period of corporation. At the same time, the outcome of strategic investment usually deviates from its expectation in practice because of the intricacies of the decision and operation circumstances. So it makes the corporation face the bewilder that it has to make progress but it is very hard to do that .All of these factors make it necessary to include strategic investment in whole strategic of corporation. Corporation has to make its strategy more intellectual and more efficient for its existence and development and it has to learn to study capital and apply capital. Also corporation has to identify and take the strategic investment opportunity that is currently existing and matching the internal and external situations This article tries to find the common characteristics of corporation strategic investment through the analysis of the repeated failures of XX corporation in strategic investment practice; (1) To allow the room to develop for corporation, how to choose the inciting industry; (2) To win the competition superiority, how to take the market opportunity in which strategy matches for resource ;(3) The globalization of economy will bring what wind of influence to decision-making of corporation strategic investment and what kind of character and knowledge that the decision-maker is expected to own and I study it in the expectation that it can brings some popular suggests and advices in the practice of strategic investment for those domestic inferior -private enterprise especially, in which the resource is in shortage and the operation is bad .I construct this article's researching outline through the related theory of strategic management, summarizing the commonly used five basic models that is: low cost strategy ,divergence strategy ,the best cost strategy, the focusing on the low cost strategy and focusing on diversity strategy.Also it summarizes the five typical practices and appropriate characteristics that is: related diversity, unrelated diversity, mixed diversity and cooperation tactics, combining the strategic investment experience of XX corporation in the period of ten years of operation Through the introduction to polyester industry and chemical fiber industry background and the analysis to internal and external circumstances that corporations face. This article chiefly discusses the main decision problems that the managers face in coordinating the corporation's strategic objective, resource, capability and market opportunity when they practice strategic investment.