Research On The Risk And Control Of The Unrelated Diversification In Chinese Enterprise

The diversification have been given exclusive attention when the enterprise prosper, which arise the broad scale research and in-depth discussion in the theory circles and business circles. Our Chinese enterprise emerge the upsurge of the diversification in the nineties, but most of them have not gain the expectation effect, during the process of diversification, they did not carry their point and outsmart themselves and finally have been into a"trap". This article starts with the risk and control of the unrelated diversification, analyze the reason of the failure of unrelated diversification from the standpoint of risk, which means a lot to the theory and practice.This article uphold economics and management or relating theory as the guide, based on the linking theory with practice, using the method of qualitative analysis,theoretical analysis and comparative analysis, lucubrate the risk factor of the unrelated diversification enterprise, and finally evaluate and contain the risks. And then use the risk factor as the breakthrough point to analyze strategy of unrelated diversification, mark off the correlative risk factor according to different strategic stage. Ultimately, using the Haier Corporation and 999 group to do the case analysis, commentate the reason of between success of related diversification and failure of unrelated diversification and sum up the common fault of unrelated diversification in the Chinese enterprise.Since there are so many fail cases of unrelated diversification for Chinese enterprise, and hence many related diversification come to the top. So, here this article come to the conclusion: to the Chinese enterprise, it should emphasizes the own position of enterprise, build the mature core competency of itself, strengthen and expand existing business connected with the principal work, and then to think over the unrelated diversification, in other words, not to blindly learn the aimless power expanding from the foreign enterprise. So, the conclusion of this article are:1) To a certian extent the strategy of unrelated diversification diversify the Unsystematic Risk, but increase other operating risks when Implement the strategy, these can not equate the investment portfolio of the capital market.2) The risk factor of the unrelated diversification includes the internal and also the external ones. We should attach the importance to the policy risks, macroeconomic characteristics risks, Social culture risks, fresh target business risks which lies outside the enterprise, and also emphasize the internal ones such as the risks of financial, management, technical and integration. There is no better from the strategy of related diversification and unrelated diversification one, correct evaluation of enterprise itself and proper new business choosing are the premise of the successful unrelated diversification, the risk multianalysis and complete control are the guarantee to the smooth implement of this strategy.3) Chinese enterprise carry out the unrelated diversification blindly, and the"Corporation sickness"is so ubiquitous. The capability of themselves and the evalution of new business were underemphasised, there is no specific strategic objective, only emphasize the high yield while neglecting the high-stakes, no full understanding of risks and controlling of the unrelated diversification, which eventually led to the failure of the strategy.4) Chinese enterprise should work hard to improve its basic research and development and abilities of operating and managing, enhance the awareness of the importance of risk management, increase the efficiency, get the prior chance to gain the sustainable development.The innovations are :1) Systemicly analyzed the risk and control of the unrelated diversification in Chinese enterprise, elaborate their characteristic,effect and mechanism. 2) Analyzed the unrelated diversification from the standpoint of risks, proposed the flow chart of unrelated diversification.