A Construction Company Diversification Strategy And Exploration

The strategy of multi-business is an important task faced by enterprises in their development. Since mid-80s of the 20th century, some domestic enterprises have been trying to adopt this strategy to develop their multi-business. About 10 years later ,these enterprises gradually come into polarization. On the one hand, some of them concentrate on the industry with promising market prospect and advantages through shrinking the scope of their business;on the other hand, others with considerable proportion are trapped in difficult situations, even into impasse. So, many disputes arise, and the discussions on the multi-business last so long that hitherto no definite conclusion is drawn. The strategy of multi-business, as one pattern of business operation, has its advantages and disadvantages in nature. Whether it is right or wrong, today, the majority of multinational companies in the developed nations are still introducing this kind of operation strategy. It is shown from the documents that 90% of the top 500 enterprises in the world adopts this strategy. This text will, through the combination of the inductive theory and commercial case study, make general explanations about the theory of multi-business, and draws the primary conclusion that the operation of multi-business should combine enterprises' internal and external advantages, based on the study of the motivation and the principle by applying the theory of enterprise priority to the decision of multi-business. Enhancing the core competitive edge of enterprises is the key to the success of their multi-business.Based on the theoretical analysis, in part two of this text, there is analysis of the multi-business operation status on the sampled enterprises, and the theoretical analysis of the success and failure of the their multi-business operation decision, and their reasons. To offer references for making the multi-business strategy of the building construction enterprises, this text applies the relevant theories to analyze the core competitive edge of the state-owned building materials enterprises, and propose the viewpoint to improve the core competitive edge of enterprises, the multi-business operation of integrating technology, manufacture and trade with the value chain as the center should be executed by combining the internal resources and the external environmental advantages of enterprises.