Enterprise Analysis Of Diversification

This thesis is on the corporate diversification, which is mostly related to the growth and development of an enterprise, and is also a strategic choice after a certain stage of a corporate development.The aim of a corporate diversification is to maintain a long-run and sustainable corporate development, thus keeping up with the surrounding environments. It is not only supported by the economic theory of the economies of scale and scope, but also a result of the external grounds and internal operating conditions.As the corporate diversification is an effective means for an enterprise to expand its scale, it is also a direct help to our China抯 enterprises. Contrast to the well-known enterprises in the world, the enterprises in China are mostly small-scaled and less competitive. That is why in most important cases of trade there is little voice from the enterprises in China. Nowadays it has become an important strategic problem for China to help to create some giant enterprises and groups of enterprises.With the beginning of analyzing the concept and categories of the corporate diversification, the author discusses some reasons and problems in implementing the diversification strategy on the ground of some cases. The author also illustrates how to deal with the diversification strategy and what is its corresponding reasons and importance, especially paying more attention to the 搑elated diversification*, which is the correct choice of diversified corporations because it can enhance the initiative and reduce the blindness and fallacy in the process of operations.Corporate diversification is a combination of the up-sizing and the overall quality improvement. It is also an innovation and improvement of strategies, aims, management, organizational structure and its culture. So, in the second half of the thesis, we treat with the organizational structure and management of a diversified corporation, especially with and crisis management in details. We have done that justbecause we aim to provide the enterprises with some theoretical and practical foundation when implementing a diversification strategy.