Studies On The Selection And Evaluation Of Core Business

With the development of modern technology, enterprises have to focus their resources in order to meet the needs of the market. Based on this background, enterprises started to sell the non-technical related subsidiaries they purchased during the time of diversity, or outsource those non-core businesses, thus raised the "refocusing" tide. The refocusing strategy is vital to help enterprises to improve their core competencies and acquire sustainable competitive advantage. As the precondition of the refocusing strategy, the selection and evaluation of core business has attracted great attention from the field of both theories and enterprises.The thesis conducts the research by combining demonstration research with normative research, quantitative research with general quantitative analysis. It discusses and verifies the difference of core business from both the theoretical and practical view, based on which the index appraisal system and the evaluation model are founded. The thesis comprehensively implements Core Business Theory, Core Competence Theory, Ameliorated AHP and Gray Clustering method during the research.Firstly, the thesis discusses the definition and characteristic of core business and analyzes the inner conjunction between core business and core competency, thus reaching the conclusion that the base of heterogeneous core business lies in business competency. Secondly, the thesis verifies the inner conjunction between core business and business competency from the view of practical perspective using the quantitative method. Thirdly, after establishing the conjunction between core business and business competency, the index appraisal system is founded based on two dimensions which are inside competency factors and outside performance, thus the selection and evaluation model can be established. Finally, the thesis makes some analysis to the evaluation model combining a real case, and makes an expectation to the future research.