The Research On Diversified Strategy Of YK Company

In an increasingly competitive market conditions, strategic management plays an important role in the enterprise’s development. The enterprise’s strategic analysis, strategy implementation and strategic control have been the key point for the enterprise’s development and operation. The diversification strategy is the hottest strategy chosen by the enterprise, which plays a better role than that of professional development mode especially in the large enterprise group. However, the diversification strategy is not suitable for all the enterprises. The key point of diversification strategy are making effective use of an enterprise’s core competence and developing it. So the first problem for an enterprise is to find out the suitable diversification strategy and applying it.YK Company is a key provincial state-owned enterprise, whose mine development began in the late1960s. It has developed into multi industry of coal, coal chemical, aluminum coal, complete sets of electrical and mechanical equipment manufacturing, construction and installation, real estate, logistics and property development during the40years. At present, it has3chemical parks in headquarters and5bases located in Guizhou, Shanxi, Mongolian, Xinjiang and Australia.On the basis of diversification strategy management theory research and advanced practical experience of domestic and international cases, this paper makes a research on diversification strategy in YK Company. It makes the SWOT analysis of its external environment, industry environment and internal conditions and gets the company’s strengths of technical creation ability, good capital operating platform, brand advantage and abundant resources storage, weakness of short industry chain, unreasonable talent structure, opportunities of continuous growth of power demand and national policy good for company going-out and merging, and also threats of national control of high energy-consuming industries and paying more attention to environment protection. Through the Boston Matrix analysis, it proposes the target of optimizing the company’s industries, adjusting the industry structure, and the measures of diversification strategy and support system for diversification strategy. Measures of the diversification strategy: First, acquiring external resources and fostering the coal industry; second, reducing cost and developing coal chemical industry; third, increasing investment and extending the industry chain of power generation&aluminum produce; forth, expanding the market and developing machinery manufacturing; fifth, cleaning up vulnerable industries and entering strategic emerging industries. Support system for diversification strategy:first, setting up a management and control system according to strategic management; second, improving security system for personnel and human resources; third, building the financial security system; forth, improving the technological innovation system; fifth, improving the modern information technology systems.This paper is a combination research of theory and practice, which is meaningful for the other similar enterprises’ development.