Research On The Motivation,Path And Effect Of Enterprise Refocusing Strategy

Since the reform and opening up in the last century,along with the rapid development of China's economy,a large number of diversified enterprises have emerged.Many enterprises have rapidly expanded their scale and strength by vigorously developing diversification,and have gone abroad and marched into the world.According to the statistics of Fortune magazine in 2019,129 of the world's top 500 companies are Chinese companies,and the above Chinese companies have implemented diversified development strategies without exception.It can be seen that the diversification strategy has become a great weapon for the development of Chinese enterprises.However,it should be noted that the excessive development of diversification has led to the diversification of corporate resources and the weakening of the competitiveness of the main business,which has also affected the sustainable development of enterprises.Some enterprises even face bankruptcy and reorganization.To this end,some enterprises began to carry out refocusing adjustments,concentrated resources to develop core business,gradually reverse the business performance and achieve development again.Based on the summary of relevant literature and theoretical basis,this paper summarizes the related literatures on the motivation,path and effect of refocusing strategy based on the actual situation of domestic and foreign enterprises,and defines the basic concepts involved in the research.The market evolution matrix theory,core competence theory and the resource-based theory are analyzed,and on this basis,the theoretical framework of the refocusing strategy implementation is constructed.The framework believes that the implementation of the refocusing strategy can be divided into three steps: the first step is to sort out the existing business of the enterprise,analyze it according to the product-market evolution matrix,and judge whether there is diversification imbalance in the enterprise.The second step is to identify the core competence of the enterprise and determine the core business.On this basis,according to the development potential and related situation of the core business and non-core business,select the appropriate refocusing path for implementation,including shrinking Paths and expansion paths.The third step,to ensure the effective implementation of the refocusing strategy,managements should make appropriate adjustments to the organizational structure of the company to adapt it to strategic changes.based on this framework,this paper conducts an indepth study on the implementation process of Shanshan's refocusing strategy,and verifies the practicability of the theoretical framework while comprehensively analyzing its refocusing strategy.In addition,this paper also studies the effect of Shanshan's refocusing strategy,and comprehensively explores its effects from the perspectives of market risk and financial performance,and evaluates the success of Shanhua's.based on theoretical analysis and case study,the paper draws the following conclusions:(1)Excessive diversification is the main reason for the refocusing adjustment of enterprises;(2)The core of successful implementation of the refocusing strategy is to correctly locate the core of the enterprise capabilities and business;(3)Enterprises should adopt the development strategy of expansion and contraction when implementing the refocusing strategy.