Corporate Diversification Strategy In China Problems And Countermeasures - Also On Analysis Of Supply And Marketing Cooperatives Foreign Trade Company Development Process And Strategy

The diversification strategy is one of the strategic choices of many contemporary medium and large sized enterprises in the world, and also is disputed frequently by the theory circles and business circles both home and abroad. In 1960s to 1970s, the enterprises in Europe and the United States once raised the upsurge of diversified operation. In 1980s, this upsurge began to fade away. In early 1990s, many enterprises of our country were wild about the diversification strategy, raising an upsurge of diversification. However, the actual results were far from expectation. As for the reasons of very high failure rate in the diversification process of our enterprises, the author sums up the three points,i.e.,the excessive use of irrelevant diversification strategy, the mismatching the organizational structure of enterprise with its strategy, there existing some obvious tactic problems during the process of promoting the diversification strategy. The objective reasons influencing an enterprise to adopt the diversification strategy cover two aspects, external environmental factors and internal condition factors. In 1990s, the enterprises in China excessively adopted the irrelevant diversification strategy, this was due to the influence of the specific system factors and market factors of our country, and the lack of internal and external limitation and supervision mechanism on the managerial personnel. In view of the existing problems in diversification strategy of our country, the author puts forward the suggestion from the two aspects. The suggestion on perfection of business environment for enterprise includes the following aspects: further deepen the reform on state-owned enterprise and consummate the system of modern enterprise, normalize the management structure of enterprise, develop the capital market and manager talent market. For the self-construction of enterprise, the author puts forward the revision mode of diversification strategy for the enterprises in our country, i.e. "under the precondition of focusing on the major businesses and establishing the core competitive advantages, gradually promote the development of restrictive relevant diversification strategy". The author suggests that the enterprises should learn the foreign advanced theories and experience during their diversification process, and should carry out the reform on their organizational structure so as to cooperate with its diversification strategy. Enterprises make great efforts to establish and improve the core competitiveness of its own, consolidate the base for development of diversification strategy.