Study On The Refocusing Strategy Of China's Listed Companies Based On Core Competency Theory

In the 1990s, most of China's listed companies implemented diversification. But a large amount of them didn't achieve their intended purposes, some of them even failed. In this new century, some listed companies start to implement refocusing strategy, focusing their resources on the core businesses. After the adjustment of strategy, the operating performance of the listed companies improved a lot, especially the core business develops rapidly. Therefore it is of great theoretical significance and practical value to study the background, cause, characteristics, and patterns of the refocusing strategy of China's listed companies.Firstly, this thesis studies the relationship between core competency and refocusing strategy, finding that refocusing could enhance the core competency, and the purpose of refocusing is the enhancement of the core competency. Secondly, this thesis illustrates the refocusing strategy, based on the core competency theory, forming a theoretical framework, which includes the definition of refocusing, the definition of core-business, the timing of refocusing, and the approaches of refocusing .Thirdly, it analyzes the practice of some sample listed companies in China, concluding that the cause of refocusing of China's listed companies is diversification failure, the main character of refocusing of China's listed companies is getting return to core business and reengineering the core business, and there are two main refocusing patterns for China's listed companies: dominant business strategy based on core competency, related businesses synergy strategy based on core competency. Last, it analyzes and proves those two patterns with three specific cases, concluding those two patterns are suitable to learn and use for other listed companies in China.