Risk Analysis And Control Of Diversification Strategy Of Construction Enterprises

With the rapid development of market economy, the business demand in construction market is growing; the scale of the construction enterprise becomes greater. As we enter the WTO, open the door to the international market, the competition becomes increasingly severe. In order to maintain the competitive position in market, Chinese construction enterprises need to make operational strategy to meet their development. Diversification strategy has become the inevitable choice to develop further. However, due to the uncertain market factors and environment changes, risk exists in any strategy decision-making.As to avoid the risk loss from diversification strategy and ensure the strategic performance, the paper provides the basic theories and methods of analyzing and controlling risks derived from implementing diversification strategy for construction enterprises, basing on summarizing the domestic and international research on risks of diversification strategy. First, the paper clears the meaning and classification of diversification strategy; present the construction enterprise's development trend of diversification now and then analyze the according cause. High profit in real estate market and the rapid growth of the industry make a lot of construction companies choose it as the preferred industry when diversifying, the paper emphasis the risk when the construction enterprises enter the real estate industry as implementing the diversification strategy, it analysis the risk source, use expert-scoring method which is a qualitative and quantitative combination to measure the risk size in figure, according to the analysis result, it rises management and control measures basing on the risk management theories.