Research On Countermeasures To Operation And Management Of Unrelated Diversified Businesses Of YD Group

For over two decades, especially with the advance of mergers and acquisitions at home and abroad, the development and management of unrelated diversified conglomerates has become a hot topic. Judging from the performance of domestic enterprises, in spite of the geometrical expansion based on the diversification strategy, there is no distinctive growth in business quality and achievements. What's worse, some enterprises suffer from deficits, loss of control, or even bankruptcy. By comprehensive analysis, the macro political and market environment and cultural background are factors contributing to such problems, but more importantly improper management could be the main factor.This paper objectively analyzes the successful experience and problems in carrying out the management mode based on YD's current development status. In addition, with the reference of some excellent management cases of relevant conglomerates, how the platform of headquarters and professional platform of sub-companies are established for unrelated diversified conglomerates and how a coordinated development can be realized by passing down orders through strategic, investment, human resource and financial management to sub-companies, are discussed in this paper. The first chapter of this paper mainly introduces the background, purpose and significance of the research, current status and trend, and provides the definitions of diversification and unrelated diversification. The second chapter presents the current status for unrelated diversification of YD, including basic information and history of the enterprise, background of the unrelated diversification and analysis of internal reasons, and representations of unrelated diversification. The third chapter summarizes six ordinary problems of management, in unrelated diversification and ordinary problems of management in related diversification, and analyzes risks of unrelated diversification management both internally and externally, based on the management situation of YD's unrelated diversification. The fourth chapter explains the major actions and performance evaluation of YD's management of unrelated diversifipation, including adopting the road to diversified conglomerate and professional sub-companies, improving the structure of the company, optimizing the functions of headquarters, improving budget management system, establishing professional platform systems, enhancing system construction and performance evaluation and upgrading the information system. The fifth chapter proposes five suggestions for improvements for relevant enterprises, based on YD's practices regarding unrelated diversification management. The concluding part summarizes the aspects of unrelated diversification management and puts forward existing problems and aspects need to be improved. Judging from the current status and performance evaluation of YD's unrelated diversification management, there are some good measures and experience with regard to successful management. However, there are still some unsatisfying aspects.In conclusion, by research of the cases of YD and relevant enterprises, the author hopes that this paper will have some significance for reference with regard to the management of unrelated diversification, upgrading and restructuring of industries, mixed ownership reform and the management of various businesses, etc..