A Study Of Diversification Strategy Based On Circulation Economy Of XD Company

With the establishment and gradual improvement of China's socialist market economic system, especially with the deepening of the electricity reform, the diversification of the electrical enterprises is facing a new situation and new problems, and is also faced with an important development opportunity. So it is a state of emergency to build up their diversification strategy that is fit for their capacity and environmental changes. How to combine the characteristics of the electric producing with the generalities of the market economics and according to the external objective environment and its resource condition, low cost and developing efficiently have been the important topics that the electrical enterprises have to face when they use diversification strategy efficiently by combining the practical demand with the possible condition.The proposing and the implementation of the circulation economics provide a new development opportunity for the diversification of the electrical enterprises. China is strengthening the environment government year by year, carrying out"the charge of the zero pollution"standard to the smoke and the dust that electricity enterprises give off instead of"the charge of exceeding quota"standard. And this will increase the operation cost and the electrical enterprises will be influenced on the benefits. The electrical enterprises have to consume a great deal of coal when producing electricity. Then how do they handle with the by-products? Can they carry out the diversification strategy in the view of the circulation economics. It means they should combine the diversification strategy with the circulation economics, which is not only good for environmental protection, but also can generate the benefits that the other industries can have. This is the core of the paper.This paper studies the diversification strategy of the electrical enterprises from the totally new view. That is, according to the diversification theories and the circulation economics theories, firstly the external and internal practices of the diversification and the circulation economics are studied; then a realistic example is taken——XD Company (XD). This paper analyzes the present situation, the problem and the reason of XD. Then it puts forward its diversification strategies it should choose and discusses the implementation of them after that.This paper is divided into seven chapters. Chapter One mainly introduces the research background, research contents and research aims, and then discusses the basic train of thought and the frame of the paper. Chapter Two analyzes the related theories of the diversification and developing circulation economics. Chapter Three studies the real experience of diversification and the circulation economics of the foreign companies. Chapter Four reviews and analyzes the background of the diversification and the present operating status of XD. Then it discusses the problems of the diversification and analyzes the reasons of them. Chapter Five discusses the aims and principles of choosing diversification strategy and analyzes the external environment and the internal condition of developing circulation economics. And then it points out that XD should take the circulation economics as a foundation, mainly develops the related diversification and gives the reasons why XD should do it. Chapter six discusses the measures that XD should take when it carries out the relater-diversification strategy on the foundation of the circulation economics. Chapter seven is the conclusion of the paper.The innovative parts of the paper lie in: it combines the diversification theories with the circulation economics; it puts forward the related-diversification model based on the circulation economics and then it gives the operative measures.