Cj Company, From The Diversification Strategy

At the beginning of 1990s, our country set off the tide of diversified management, the real estate which developed rapidly needed to expand it's scope urgently. Meanwhile, in order to evade the high degree of risk, most real estate enterprises chose strategies of diversification and got considerable development. However, until the second half of 1995, effected by national macroeconomic regulation and poor diversified performance, many real estate enterprises had to withdraw from the field of diversified operation, some really couldn't bear the heavy load of diversification, so they had to go bankrupt. Should real estate enterprise exactly implement strategies of diversification? The author points out that strategies of diversification is considered to be the effective factor in expanding the scope and reducing the business risk , but when it is used concretely, you should pay attention to it's relating conditions. Countless practices have proved that: diversification is both a strategy behavior and also an ability problem in an enterprise. Proceeding from the diversified strategy theory, according to the characteristic of the real estate, regarding the rise and decline of CJ Company as a fact, the thesis proves the necessity and importance of diversified theory in trade practice. The thesis is mainly divided into 5 parts, the first part puts forward the problem of diversified management of real estate enterprise, states the meaning of research. The second part elaborates the development of diversified theory and the theories involved in the paper. The third part introduces the development situation of real estate in China, analyses the profit ability and proves that the generous profit is the material basis of enterprise based on the 5 strength models, also according to the trade characteristic and concrete national conditions, it states the feasibility of choosing strategies of diversification in the real estate. The fourth part introduces the basic information of CJ Company and it's development of strategies of diversification. The last one analyses the rise and decline of CJ Company from strategies of diversification, uses the diversified theory to analyze the diversified behavior motive of CJ Company. During the diversified management of the company, the main problems it states are: pursued the scope of the company excessively; ignored the development of the staple while managing in diversification blindly; ignored the risk of diversification. The reasons for producing these problems are: ignored it's relating conditions while using strategies of diversification; and also the enterprise had poor ability in managing diversification. Also according to the understanding to strategies of diversification, human resource, organization, competitiveness, resources using and so on, it sums up the enlightenment from the failure of diversification of CJ Company.