Corporate Professional Management And Diversification Of Strategic Choice

Concentration and diversification are two different strategic choices for a corporation. the strategic choice determines the corporation's fate of success or failure in face of limited resources. So, it is very important to make a right strategic choice.Chinese enterprises face some problems in strategic management and strategic choice. Impacted by the old economic system in China, They don't pay much attention to strategic management. In the strategic choice, they give more attention to short-term benefits.And they don't know how to foster their core competence.This article attempts to analyze the pros and cons of concentration and diversification through case studies.The author suggests that concentration strategy is more effective and easier to succeed in current market economy for most Chinese enterprises.