Study On The Optimization Of S Company’s Diversification Strategy

As a state-owned enterprise with a history of 110 years,after more than ten years of exploration of diversified development paths,the industrial structure of S company has been transformed from the single industry of railway freight cars to the coordinated development of multiple industries,and has gradually become a railway freight car,wind power equipment,steel structure,vacuum drainage,environmental protection water,intelligent equipment and other leading large state-owned enterprises.With the in-depth development of S Company’s diversification,it has faced a series of problems,such as overcapacity and weak growth in the core business of railway freight cars,insufficient profitability of diversified business segments,lack of outstanding core competitiveness,backward technological innovation,and lack of professional talents.Etc.,the company is large but not strong,and the multiple sectors are scattered and lack synergy.How to optimize the company’s diversified development strategy,adjust the diversified industrial structure,improve group management and control,improve the market-oriented operation mechanism,focus on the main business,become stronger and bigger,and seize market opportunities to expand emerging industries with strategic prospects,is an urgent need for S company to solve problem.In order to solve the above problems,this thesis will carry out a series of quantitative and qualitative analysis on the diversification development of S company,and combine the diversification strategy and company capability theory and related analysis tools to explore the diversification strategy optimization plan and measures of S company,and propose safeguards for the implementation of the strategy.First,by synthesizing domestic and foreign theories and literatures on diversification strategy and enterprise capability,it provides theoretical support and basis for subsequent analysis,and introduces five effective analysis tools.Secondly,it expounds the general situation,development history and current situation of diversification development of S company,combined with the income and performance of diversified industries,and then summarizes the problems and reasons of diversification.Thirdly,analyze the company’s external environment through PEST,and then analyze the industry competition according to Porter’s five forces model,draw and analyze the development prospects of the multi-industry sector,and analyze the internal environment combined with the company’s resources and capabilities.And through the EFE matrix/IEF matrix analysis to evaluate the opportunities and threats of the company’s external environment,the advantages and disadvantages of the internal environment.Then through SWOT analysis and Boston matrix analysis,the company’s diversified industry portfolio is analyzed and evaluated,and corresponding strategic choices are made.Finally,combined with the analysis,evaluation and positioning of diversified operations,the overall optimization plan for the diversification strategy at the parent company level is proposed,and the diversified development idea of "two major industries+concentric diversification" is put forward,focusing on "rail transportation equipment" and The two major industries of "wind power equipment" firmly follow a concentric and diversified development path with high-end equipment manufacturing as the core.Integrate existing business segments,focus on the main business,and divest and exit businesses that do not match the company’s core capabilities and resources,such as environmental protection and water affairs.On the basis of the two major industries,put forward the development orientation of "212" business segments,deepen the core business,strengthen the pillar business,expand the cultivation business,moderately carry out concentric diversification,optimize the diversified development strategy,and realize the resource sharing and coordination of multiple business segments.developing.And put forward specific strategic improvement measures for each sector,and then put forward the guarantee measures to promote the implementation of the diversified strategy optimization plan from the aspects of the company’s scientific research innovation,system and mechanism reform,development mode change,basic management improvement,human resources optimization,brand culture building,etc.,to ensure the implementation of the strategy.Through scientific research and systematic analysis,this thesis provides solutions and solutions for the diversification of the century-old state-owned enterprise S Corporation.In the context of the reform of state-owned enterprises,combined with the current situation of the company’s capabilities and resources,a new direction of diversification and optimization is proposed to promote the S company to become stronger,better and bigger,and achieve high-quality development.And provide reference and help for similar enterprises.