Study On Diversification Strategy For Jiangsu XHL Group Company

The fast growth of local government debt and the huge contradiction between local revenue and expenditure make the local government is overwhelmed by huge debt payment pressure.A large amount of debt is from government-backed investment and financing units at all levels,especially those in the area with strong expanding demand.The scale of loan is bigger and bigger.Local government-backed investment and financing units are confronted with unprecedented challenges relating to positioning,survival and sustainable development.Questions that how to constantly contribute to the development of local economics and that how to achieve the goal of self-restoration of a city and the goal of sustainable development need to be answered.In the meantime,it is a vital chance for local government-backed investment and financing units to change their development model.If it is unduly solved,it would bring potential fiscal risks or in other words,systematic financial risks.The thesis is based on literature research,qualitative analysis,practical investigation and case study.The first part introduces the background of the topic,the purpose and the importance of the study and the content and method and theory of the study,followed by the introduction of strategic management theory and related domestic and foreign works of literature in the second part of the thesis.The third part analyses domestic factors that influence the Jiangsu XHL Group,showing the development trend of local government-backed investment and financing units and figure out the external environment of Jiangsu XHL Group,looking for advantages and disadvantages that impact the Group' s development In the fourth part,the strategic matrix of Jiangsu XHL Group is established by combining with the Group' s visions and goals and selecting diversity strategy.The last part of the thesis puts forward implementing approaches.The conclusion of this thesis is that Jiangsu XHL Group shall choose diversity strategy,with reforms in respect of equity structure,corporate governance,business direction and security system,solving survival challenges faced by the Group with a market-oriented goal.I hope that the development direction of a company would be concluded through this thesis and that I apply the business management I learned to actual practice,accomplishing social value of myself and a corporate.