The Study Of The Refocusing Strategy Based On Core Competence

As a strategic way to avoid risks and enlarge scale to make grow rapidly, the strategy of diversification has been adopted by many companies home and abroad. But since 1980, many diversified companies have suffered great losses for over-diversification. A trend called refocusing appeared and accepted by these companies. They began to reduce their business units to be less diversified and try to focus on their main business. The management strategy of diversification has been the topic of many researches and is a hot one these years in our country.Lots of academic and positive researches indicate that corporate diversification must base on the core competence to gain outstanding achievements. Under the situation of over-diversification in the companies at home, this dissertation, proceeding from the present researches of the company strategic development, and combined with the latest achievement of the company core competence researches, puts forward the Refocusing Management Strategy. It also discusses about the current situation of diversification management and analyses the basic process of the implementation of refocusing management strategy. There are five chapters in this dissertation.Chapter one analyses the research background, research goals and the significance of this dissertation, and introduces the present situation of refocusing strategy researches both abroad and at home. It also defines the refocusing strategy in theory and elaborates it essentially. Besides, the researching methods and the innovative points are also included in this chapter.Based on the relative development of the diversification strategy, the refocusing strategy and the theory of core competence, chapter two points out the final goal of the refocusing strategy is to achieve the diversification management strategy based on the core competence. It also analyses the dialectical relationship between core competence and diversification, as well as the methods of dealing with theirrelationships during the implementation of the diversification strategy. Besides, some examples are given to prove that the launching of diversification should be based on the core competence.Chapter three analyses the special backgrounds and motivation for the implementation of diversification management in the companies at home, on which the current situations of diversification management of the companies in China are summarized, and the reality of over-diversification is inferred. The actual situation of the implementation of diversification in the companies at home is illustrated by some examples.Chapter four analyses the practicality of the implementation of the refocusing strategy in China. Besides, the effects of the implementation of the refocusing strategy are illustrated by some examples. In the end, the dissertation pointed out the problems during the implementation process of the refocusing strategy in the companies in China.Chapter five points out that when implementing the refocusing management strategy based on the core competence, the company should firstly determine the goal and judge the managing situation, and then identify the core competence and select the core business. During the implementing process, the company should concoct everything together. And after the implementation, there should be an evaluation.