Chuan Yun Group's Development And Diversification Investigation

1. The motive and significance of this research Since the beginning of the reform and opening up policy, Chinese village and township enterprises have developed quickly, and have become an integral part of the national economy. Because of the changing market environment and their own problems, enterprises are facing many new difficulties and challenges.This paper provides a case study of the development of Chuanrun (Group) Company Ltd., and seeks to discover the cause of quick development of village and township enterprises and the problems they are facing.2. The logical structure of the researchChapter 1:Introduction of Chuanrun development and the reasons for the company's rapid development as analyzed by the author.Chapter 2: Analysis of the current state of Chuanrun's development by introducing its expansion through diversification.Chapter 3: Problems currently facing Chuanrun. Chapter 4: Author's suggestions for Chuanrun's future development.3. The main contents and views of the paperThis paper points out that the development of Chuanrun was largely due to both internal and external advantageous factors. In terms of the external environment, the reform of China gave the village and town- ship enterprises opportunity to grow. In terms of internal environment, the right decisions of the leadership (family business) as well as and innovative spirit both played important roles.Diversification was a significant means for the company to expand, but it also carried with it many problems for Chuanrun. Diversification is a double-edge sword.Innovation is a key method to solve the problems, which Chuanrun are facing at present. Chuanrun has to initiate the second mass development based on continuing creativity, cultivating core competence, reforming the management system, establishing the modern enterprise system, and on products and technology innovation.4. The contribution of the paperThe paper presents a real life case, gives a concrete analysis and discusses, in detail, the problems small companies face.The author worked as an assistant general manager and is thus familiar with the firm's operation, and all suggestions stem from his own experience while working there.