The Diversified Business Strategy Selection Of Anhui Salt Industry Corporation

As a traditional industry in China, the salt industry has long been planned to manage and be executed by the country specialize in. In May2009, after the issue of ’The Views Regarding Deepening Economic Reform in2009" by National Development and Reform Commission, the Chinese salt industry reformation began. To meet the arrival of the salt industry reform and promote its own long-term development, Anhui Province Salt Industry Corporation, adjusted its development strategies and implied industrial restructuring relying on the rich resources from its many years of operations. Based on its main business, the company compatibly conducted the expansion of its competitive businesses and the compression of its weak businesses, which targeting to a company with multi-industry and multi-field development.By using basic theories of the diversification, taking the theory into practice, as well as combing with the implementation of diversification in the industry-leading enterprises, this article conducted an empirical study based on the case of Anhui Province Salt Industry Corporation. Considering the company’s current business strategy and analyzing company’s development environment, we proposed a novel method of diversification development. In addition, the feasibility analysis is completed.This article is organized as follows. The first part is introduction including brief background and significance of the topics, the ideas, content and novelty of this thesis are presented. In the second part, an overview of the basic theory of corporate diversification is presented, including the connotation of the diversification, the implementation conditions, methods and correlation theories. The third part includes a basic business analysis of Anhui Province Salt Industry Corporation. Some problems and deficiencies of management are pointed out. Then the feasibility regarding the selecting diversification strategy for the Anhui Province Salt Industry Corporation. By analyzing, a diversified development based on core competencies is presented. The fifth part is the development environment of Anhui Province Salt Industry Corporation is introduced. Using core competence analysis, SWOT analysis, the main business portfolio analysis, a comprehensive and in-depth discussion on the company’s internal and external environment is completed. In addition, this article designs business diversification strategy for Anhui Province Salt Industry. The future objectives, tasks, main business development plan, a moderate compression of the business restructuring plan as well as new business development direction are proposed. Then various reasonable comments and suggestions are also discussed. The Final part concludes the research work and presents its limitation as well as the future research directions.