Case Studies Of The Diversification Of China's State-owned Enterprises

Emerging and developing in western enterprises, diversified operationalso exerts influences at a certain degree on the operation of the Chineseenterprises. State-owned enterprise is an important component of China'seconomy and holds an important position in China's economy. As theeconomy develops swiftly in China, state-owned enterprises are developingrapidly as well. More and more state-owned enterprises are facing the choicesbetween diversified operation and specialized operation.In the first chapter of this thesis, the history of diversified operation inoverseas countries is reviewed at the beginning, followed by the presentsituation of diversified operation in China and the research significance.Lastly stated are the reasons for state-owned enterprises to adopt diversifiedoperation, some existing problems, and the research contents of this article.In the second, third, and fourth chapters, the drawbacks of diversifiedoperation adopted by state-owned enterprises are illustrated by amplifying thefollowing facts: the background of the diversified operation adopted byShenzhen Special Economic Zone Real Estate (group) Co., Ltd., theimplementation situation, the results, and the analysis of the reasons thatcaused the failures to its diversified operation.In the fifth chapter, the successful specialized operation of China VankeCo., Ltd. is taken as the research object. Firstly, an introduction of thecompany's success in specialized operation is given. Then a parallelcomparison is carried out, between China Vanke Co., Ltd. and ShenzhenSpecial Economic Zone Real Estate (group) Co., Ltd., to illustrate the mainreasons leading them to different results, success or failure.In the sixth chapter, some enlightenment on diversified operationadopted by state-owned enterprises is dissertated. There are several importantissues that must be noticed when state-owned enterprises start diversifiedoperation: to build a real system of modern enterprise;to improve its owncore competency;related diversified operation should be considered as themain target when considering diversified operation;to improve the level ofmanagement, to adjust the organizational structure, and to reserve humanresources. It is only in this way that risks can be avoided in the diversifiedoperation process for state-owned enterprises and their core competency canbe improved. Thus, the enterprise can become larger and stronger. Hopefully,there will be more Chinese enterprises to be listed among the world's top 500enterprises in the future.