The Research On Diversification Strategy For Chang Run Investment Group

State-owned Investment Companies were born in China’s reform period. In state-owned assets management organizations (such as the SASAC)--operators of state-owned assets of state-owned enterprise--a new three level of state-owned assets management system, state-owned investment company real play second levels of role. Chang Run investment group was founded in1994May, is authorized by the city hall of municipal state-owned assets operating organizations. As the city hall important subject of investment and state-owned asset manage principal part, Chang Run investment group undertakes state-owned asset maintains value rise in value, the focus of the project construction and financing. Chang Run investment group according to their own internal conditions, advantages and disadvantages exist in the external environment opportunities and threats, make the diversification strategy choice. In this case, the Chang Run investment group how to effectively carry out diversified research, not only has the important theoretical value, but also has a positive and practical significance.The new opportunities for development of Chang Run Investment Group are as follows:market system of state-owned investment companies comes to maturity gradually; financing difficulty of small and medium enterprises brings opportunities to growth of pawn and micro-finance; both central and local governments support the development of small and medium enterprises and investment companies as well; city-owned companies are too weak to take the task of urban construction; municipal party committee and government provide great support. At the same time, the threats it faces are as follows:the business of venture investment faces fierce competition for financing banks also attempt to grasp the opportunity for development; the central government tightens the regulation of real estate industry.The main advantages of Chang Run Investment Group reveal the following aspects: perfect corporate administration structure; excellent administration group and employees; effective mode of capital operation and high level of project management; good platform for venture and industrial assets operation; positive company culture. The initial disadvantages are as follows:the new industry just starts; narrow and ineffective financing channel; strong regional characteristics of project resources; weak stimulation system inside the group; limited areas of investment. This paper will analyze the typical industry of Chang Run Investment group using model of Boston Matrix and evaluate the market position and development prospect of every industry of this group in its market. The strategies concluded by this study are: intensifying work of employees and nurturing technology for new industry; sparing no efforts to develop financial services industry with reliance on the advantage of capital platform; providing urban services by constructing the industry of "pretty city, pleasant house"; optimizing structure of businesses.To ensure the effective operation of strategies above, this study presents the corresponding safeguards:constructing the project supporting system to provide solid foundation; constructing the capital supporting system to provide strong back; constructing management supporting system to ensure the effective operation of the group; constructing cultural supporting system to develop harmonious group; constructing human resource supporting system to provide professional group for capital operation.This paper discusses the strategy choice and road of implementation referring the actual situations of Chang Run Investment Group. Beside the realistic significance, this paper will be a guide on strategy choice for other companies with similar characteristics.