Influence Of The Diversification Strategy On The Enterprise Performance

Strategy of diversification, short for Business Strategy of Diversification, refers to such a kind of business strategy mode that enterprises engage in several industry fields simultaneously in their production and management processes. H. I. Ansoff, a great American strategist, took the lead to raise the concept of diversification in his paper Strategy of Diversification in1957。Since the concept of diversification strategy was first proposed, it’s been over half a century. Under the complex environment that industry characteristics, market structures in supply and demand differs a lot, enterprises thrived in the waves of diversity and declined in the refocusing tide time and time again. However, the scholars’pace of diversification strategy research has never slowed down, which have been trying to clarify the nature of the economic phenomena behind diversification from different angles and in different levels.With the deepening reform of China’s economic, the rapid development of private enterprises fills the industrial blanks that caused by the recession of the state-owned enterprises from the restructuring trade. In recent years, China’s private economy develops rapidly and grows strongly, which has gradually become an important force in stimulating national economic growth. The diversification also gradually becomes an important way for private enterprises to expand their businesses. Facing China’s accession to the WTO under the new situation of market competition, private enterprises need to accumulate more core competencies to respond to the great challenges posed by economic globalization.As to research China’s private enterprises,150private listed companies on the Shanghai Stock Exchange are selected as samples. According to the actual characteristics of China’s national conditions of China’s private enterprises, empirical assumptions are raised and the index system is determined with the selection of the specified dependent variables, the independent variables and the control variables. After filtering the samples, the overall sample data is calculated and analyzed with the analysis of the correlation between variables. SPSS.17.0is used to make the descriptive statistical analysis of the data collected. Total samples and grouping samples are analyzed separately, and thus the hypotheses are verified. According to the characteristics of the statistical data, a model of the empirical research is constructed.On this basis, this paper analyzes the economic environment and the development of the private enterprises, combining with realistic characteristics of China’s private enterprises and the results of empirical analysis to put forward some constructive advice to the diversification of the road of China’s private enterprises.