The Study On The Problem Of The Diversification Strategy For The Equips Manufacturing Enterprises Of FAW

As the company reforming and strategy resetting of FAW, as the strategy carrying of the strengthening the base and take out the necessary .that is the every firms work alone in the market. There is a changer on giving equips them in FAW. Some equips manufacturing enterprises had been put to market that they are plant of FAW. The no worry about way of production and sale are facing to market competition. All the givers get in competition all over the world. In this case, equips manufacturing firm of FAW that work for FAW production can get little resources from the other firms of FAW. It is very hard that the enterprises run. Equips manufacturing of FAW set up a diversification business on automotive parts production. Whether is the diversification a long term strategy or not. The managers have not same opinions, so that the discussions had been set up. As the huge developing of automotive industry has been, it is expanded in equips and automotive parts, not only had taken the chances, but also had faced the challenger. it was an important question that the equips manufacturing enterprises of FAW had to face. The diversification is a busy formation that enterprises want to get a long term stand running and the most benefit to study the developing product, scoring and putting other field enterprises for their products system. The enterprises can get extrudes benefit on diversification but for what the every business should get. It is choosing that the relate diversification is choosing in developing term and field underground, the strategy is not bad thing but there a huge risk in the strategy, it can conduct a lot of loss for the enterprises. The specials of the automotive equips manufacturing enterprises are many kind of, a small amount of, has high technique and much investment and automotive equips manufacturing company has some thing with automotive manufacturing. There are a big developing change in FAW and Equips manufacturing enterprises of FAW. The FAW is change from the first automotive work plant. FAW had bridled up by CCCP. It is also one of the 156 projects of the 1st five year plan in our state. The whole organization of production and had been set up by the developing level of our state economy. FAW has reformed in 1999. it is advanced level that the whole trucks and equips in that time over the country. After reforming, the car manufacturing technique has catch developing of world. Equips technique is undeveloped. Equips manufacturing of FAW had finished separating from FAW. They are in bad in busyness. Equips manufacturing has developed in and out country. The developing tend of international equips manufacturing is the market needs of the automotive equips manufacturing is increased slowly. The more competition has taken place in the globe automotive equips manufacturing, the place that the world automotive equips manufacturing market would have increased mostly in the future is in the east. The biggest user is and will be in Asia. Many companies in the developed countries have built up their factories or increased their investment in china and Indian. Our state industrial policy is developing equips manufacturing. Equips manufacturing of FAW have a chance that automotive equips manufacturing develop hugely and much risk that there are many the strong competitors, Equips manufacturing of FAW have many advantages and disadvantages. The enterprises need diversification for living and developing. The diversification works have finished: 1) using the resources to do the diversification projects; 2) released enterprises 3) become a new economy increasing; 4) help for developing of enterprises. The problems are 1) some diversification projects had not tested in sciences; 2) the entrance resistance is lower; 4) the problem on diversification projects needs to developing; 5)management fighting; 6) scattering the enterprises resource. Equips manufacturing enterprises of FAW should be in diversification running: 1) the choosing of diversification projects is use mutual aid to get out of management risk; using resource and advantages of enterprises; having mutual aid and cooperation. 2) Increasing the core competitions; 3) Using the divided power management to decrease management fighting 4) Making the diversification projects into the money resource ; 5) Going on developing advantage on friendships with FAW ; 6) Developing their core projects along the advantaged direction.Equips manufacturing enterprises of FAW have been cleared in diversification running direction: A good future, huge market needs and developing potentiality; Equips manufacturing enterprises of FAW have got much money from the production automotive parts; It is more advantaged than disadvantaged that equips manufacturing enterprises of FAW produce automotive parts; Diversification management strategy is using the resource as much as they could; Using the divided power management to decrease management fighting Preparing change their direction into a good fields.