The Shandong Daiyin Textile And Garment Group Crunch Strategic Research

Corporation contraction is a concept against corporation extension. It is a kind of method in capital operation that can contract the main operating range and the scale of the company by restructuring the capital or asset. The methods of corporation contraction include divestiture, spin-off, equity carve-out, stock repurchase, targeted stock, voluntary liquidations etc. The methods of corporation contraction appeared since 1970' s in company with the rethinking of mix merging appeared since 1960' s. Now all kinds of corporation contraction methods are widely used in corporation restructuring in west, and people' s studying in the effect of using the methods of corporation contraction found that their impacts on the corporate financial performance were positive.The application of corporation contraction can help companies to overcome the shortcomings of blind diversify, strip non-performing assets, improve the financial situation and improve management efficiency. More importantly, it can plan t7he development of enterprises from a strategic perspective to improve the core competitiveness of enterprises so that the enterprises can make success in the fierce competition of the market.In this paper, the analysis method of combining both theory and practice is used. With the theory and research of contraction strategy , from the status quo of Dai-yin textile and garment group, this paper analyze the background of the implementation of the contraction strategy for Dai-yin Group and design the contraction strategy.The article is divided into nine parts. The first part is introduction and mainly about the background, significance and study methods of this research. The second part is literature; with review of domestic and international research on the contraction the readers of a basic understanding of the contraction. The third part is the brief introduction of the Dai-yin group, which offers background information to analyze the contraction strategy in the next step. The fourth part tell us the necessity of tightening strategy and analyze the internal and external factors that Dai-yin Group currently facing which is the reason for the implementation of contraction strategy. The fifth part gives the design for tightening strategy, including tightening strategic objectives, strategic planning and main elements of the strategy. The sixth part analyzes tightening strategy of Dai-yin Group. The seventh part analyzes the Refocusing strategy. The eighth part analyzes the implementation method of Core business expansion strategy. The final part of article is conclusion that gives the concluding remarks with the foregoing.