Strategic Management Perspective, The Empirical Study Of The Performance Of Corporate Diversification

With regard to the increasingly fierce competition in the real estate industry, ourgovernment had taken a series of measures to curb the overheated development of themarket. More and more companies have chosen the diversification strategy, but mostof them didn't achieve their expected benefits. Concerned with domestic and foreignscholar's research results, This paper will discuss the above issue in the view ofstrategic management process. Diversified listed companies in China to conducttheoretical research and empirical analysis, using the real estate industries in Shanghaiand Shenzhen stock market listed company financial data for the three years2008-2010,combined with these companies to carry out diverse operationssituation,we are trying to find the relationship between diverse types and corporateperformance.Firstly, the paper uses the method of strategic analysis to research the real estatelisted companies from both the macro and micro aspects. then the paper elaborates thedefinition types of diversification strategy and motivation theory Finally,the paperdoes some research to the enterprise diversification strategy and performance fromempirical analysis.We proved that in the current economic environment,the real stateenterprises expanded other business areas besides their main business.However, themean performance of enterprises which had inplemented the diversification strategyware less than the single ones.Neither with the strategy of related diversification northe strategy of unrelated diversification,the business performance ware decreased.Wecame to the conclusion that the total diversification degree,.the related diversificationand the performance showed significantly negative relation.Based on the above conclusions, the paper will provide some empirical basis andcarry out some corresponding recommendations for the corporate investors andmanagers to make appropriate decisions.