A Study On Strategic Transformation Of FC Group Based On Refocusing Theory

Strategic Management is an art of multi-functional decision-making process, whichaims for exploring and creating new opportunities continuously. Diversification strategyand Refocusing strategy, both closely related to the modern enterprise growth anddevelopment, have gradually become an important topic for many entrepreneurs andscholars. Although we can find a large amount of cases which firms use diversificationstrategy and succeed, the example of the failures is also not uncommon. In China, due tochanges in business environment and enterprise performance, more and more companiesbegan to rethink on their diversification strategy; a far-reaching change on the Refocusingstrategy is unfolding.Based on analysis of FC Group’s currently operating difficulties, we reclassified avariety of businesses according to the Boston Matrix Theory. Considering the domesticmacroeconomic environment, the Group’s core resources and competitive advantage, wemade an in-depth analysis on futures of different types of businesses in FC Groupprospectively. Then, we developed a five-year Strategy Plan for the enterprise consideringall those factors listed above. After these, we discuss in more specific details on four majorfunctional aspects: the strategy and corporate culture; operation structure and humanresource management; products development and market promotion; financialmanagement and risk control. The overall conclusion we made is that disconnecteddiversification strategy can drag enterprises into a plenty of operation and financialdifficulties. We must fully consider the Group’s own resources advantages, use strategicview, to make a scientific, rational and comprehensive strategy plan for the Group.Hopefully, rigorous analysis and strategic plan according to the Refocusing Strategy inthis thesis can help FC Group management board clearly notify its core resource andcompetitive advantage, change their current operating strategy in order to get rid of itscurrent operating difficulties, let the subsidiaries think unitedly, fully use their key abilities,make reasonable investment decisions, in order to achieve the final overall businessperformance improvement.