| With fierce competition between different enterprises, a number of enterprises make blind choice of diversification strategies, so as to improve their strategic competition advantages, avoid business decline as well as reap top-line profits. However, the enterprises'successes in diversified operation mostly depend on their correct choice of relative businesses in accordance with their resources, capabilities and core competence. Owing to lack of correct recognition of diversification, a lot of enterprises seek for diversified operation and decentralize their resources, accordingly reducing their performances and increasing business risks.Hunan Yuyang Group is a large-sized enterprise group quickly developed within short 10 years, venturing into real estate, petroleum, shipping, architecture & buildings, trade of construction materials as well as property management. However, accompanying with the quick dimensional expansion, it gained no tidy profits, on the contrary, its diversification resulted in unreasonable resources distribution and brought operation difficulties in major businesses. This thesis mainly utilizes the diversification theory to conduct analysis on diversified development atmosphere, existing resources and capabilities of Hunan Yuyang Group, and afterwards put forward solutions on issues emerging during the diversified development and also rectification and recommendations regarding the formulated diversification development strategies.Therefore, this thesis thought that decision of diversification development and choice of diversified type must take full account of outer environment and make full analysis of existing core competitive conditions, or else, just opposite to what you wish.The diversification issue of Hunan Yuyang Group has a certain representation of diversification development for small and medium-sized enterprises, with a lot of precious experiences and valuable lessons for our summary and reference. |
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