Liaoning Of Diversification Development Strategies

Liaoyang Petrochemical Fiber Complex, under the administration of China Petrochemical, is one of the four chemical fiber bases founded in 1970s with sets of imported equipment. During the development, the business diversification centered around such major industries as mass refinery, mass chemical, mass petrochemical fiber. The enterprise went through reorganization in 1999. Major industries and aiding equipment were grouped into the branch of China Petrochemical Corporation (CPC) while the remaining body, LiaoHua Co., became a large-scale state-owned enterprise as an independent corporate organization. Most of its revenue is gained by supplying comprehensive and accessory services for the CPC branch. With the successive cancellation of three subsidies and some of the preferential from the CPC, the remaining body faced tough and severe situations. It is major the topic to solve that how should LiaoHua Co. properly practise BDS around the main body, the public limited company came out.The paper consists of 5 chapters. Chapter 1 :Preface.Analysing the current diversified of LiaoHua Co. from the perspectives of diversification types, operating results and operating characteristics. Chapter 2:Analysing the major problems in the process of business diversification and their reasons. The major problems are: the great reliance of the business diversification, employees' heavy burdens, low diversification level, small industry scale, a lack of the advantage of competition, etc. Chapter 3: In light of the special occasions in LiaoHua Co. and relative strategic theory of enterprises home and abroad, a basic principle and general idea for LiaoHua is made to develop diversification. Its content is: boosting LiaoHua's advantage in accordance with the principle of capacity, moderation and relevance; seizing the market opportunity; avoiding policy risks; adjusting structure appropriately and expanding the major industries attentively. Chapter 4: Drawing up counter-measures in the business diversification in LiaoHua Co. from the aspects of establishing organization systems, adjusting industry structures, cultivating enterprise's core skills. ChapterS: Conclusion.The major conclusion of this thesis will offer a reference for LiaoHua Co. to implement BDS.