Study On The Diversification Development Strategy Of XJ Company Based On Issue Shares

XJ company is a private enterprise for producing, selling and developing foodmachinery, chemical machinery, and military machinery. Along with the development of theenterprise, there appear some problems in the operation and management of the enterprise.For example, its less sustainable funds limit the speed the development of the company, thecompany needs to improve its management efficiency, the research and development abilityof the company remains to be improved, etc.In this paper, with the current financing difficulties of our country’s privatelyoperated small and medium-sized enterprises and the development of private enterprisesconditioned by the state policy, taxation, personnel as the background, based on thematerials obtained through on-the-spot investigation, communication with the people incharge of various departments, and visiting the head of the companies, the author analyzesthe data to determine the companies’ core competitiveness, and sums up the strategies toimplement the diversified development for technology-based small and medium-sizedenterprises by adopting the combination of five model and SWOT analysis method, throughthe analysis of the diversified development theory, of the companies’ external environment(macroeconomic environment and industry overview) and internal managementenvironment (finance, production, sales and development), of the companies’ listedfeasibility (public share issue) and of the companies’ core competitiveness. The authorproposes that small and medium-sized technology-based private enterprises can obtain astable financial support by way of the combination of debt and equity, and promote the fastdevelopment and expansion of enterprises on the basis of the companies’ corecompetitiveness, through active carrying out development and accumulation of newtechnologies with their own funds and supportive funds, decentralization management andreserve using its own funds and access to funds, decentralization management, and theforming of more new stable management teams for the development, production and salesof new products.As a small and medium-sized enterprise and technology-based private machinerymanufacturing enterprise, XJ company’s development represents the developing process ofthis industry to some degree. The authors hopes that the research of XJ company’sdevelopment strategy can provide a certain significance and reference value for other small and medium-sized technology-based enterprises.