Refocusing Strategy To Enhance The Competitiveness Of Multinational Business Enterprises

With the advent of New Economy, the problems of diversity operation which was once canonized by many enterprises begin to show fulsome. Many negative influences come forth. The decentralization of resources makes core business of enterprises developed insufficiently. Under this condition enterprises will lose their advantage in the drastic market competition and lead the main business to downfall or even ruin the whole business. Under this background, Refocusing strategy is the proper strategic choice for enterprises to deal with fulsome diversity operation. Refocusing strategy is to return to the core business and centralize the resource to the business which is most competitive and profitable and develop these core businesses solidly and dynamically with the clear and correct cognition of core business. The main point of focusing strategy formulation is to analyze the core business correctly and definite the core business exactly and efficiently. It is not easy to definite the core business. Correctly discerning the own asset of enterprise and market environment and making series of main judgment are needed .The core business of an enterprise is not static. The definition of core business is a dynamic process which develops with the practice of enterprise. The expansion to joint businesses of core business under the restriction of a series of conditions and core business has to be redefined with the change of the market environment. The principle of formulating a refocusing strategy is to develop the enterprise's core competition and the goal of formulating a focus strategy is to realize continual profitable development of enterprise. The basic means of implementing focusing strategy are expanding and shrinking. The enterprise should have different focusing strategy arrangement in different life cycle. The potential of core business is enormous . In the implementation of focusing strategy .The potential of core business should be fully exploited. The purport of focusing strategy is that it can improve the core competition efficiently. It can be manifested in some aspects conformity, predominance alliance creation ,environmental such as value chains adaptation improvement, better international competition ability etc. After the mass expanding in 1980s many enterprises in our country have faced the problem of fulsome diversity operation by now. because of the special historic condition and economic condition. The implementation of focusing strategy will bring a lot of proceeds to the enterprises and support the continual development of enterprises in order to make them built to last.