Nuclear Strategy, Based On The Ability Of Enterprise

How the firms can grow and how to judge the condition of the firms' growth are the issues that all firms mostly concerned. The reasonable strategy is the basis and assurance that make the firms grow steadily. Strategy management is the highest level, and also the highest stage in business management. The selection of strategy has direct relationship with a firm's life. The tide of the corporate diversification emerged in 1990's in China. But most of the corporation has not obtained the expected effect, and some of them overreached themselves on the contrary during the process of diversification. At the same time, many corporations in the worldwide turn their strategy to refocusing in order to enhance their core competence. The thesis attempts to research the refocusing strategy from the theory of corporation's competence aspect.The researches on the relationship between the corporate refocusing and the competence of the firm have the important theoretic significance and practical worth. This thesis attempted to ascertain the necessity relationship between them, offer a new point of view to understand accurately the strategy of refocusing and establish corresponding theoretical principle, and offer an operational real way to select the strategy of refocusing. In the detail, the thesis research the corporate strategy of refocusing based on the competence theory of the firm, appraising comprehensively the refocusing strategy. As a long-term strategy of development, the implications of "refocusing strategy" are divesting non core businesses, differentiating bad assets, returning to core business, and enhance core competence. There are two ways of refocusing: contraction and expansion. The contracting way consists of sell offs, spin offs and equity carve outs. The expanding way mainly refers to that, on the basis of renewing and reinforcing core business, firms try to realize the aim of strategic returning to core business by innovating, recombining resources, and reorganizing business.Firstly, it is interpreted the causes of the refocusing with the competence theory; secondly, it is researched the optimum degree, mode and the way of the refocusing depended on the existing level, the characteristics and the matching efficiency of the competence, and the relationship between the competence. It is also accounted for how to ensure the success conduct of refocusing by the effective management of the competence. From the example of VANKE and DELONG, we can conclude that refocusing strategy is a feasible and effective way to gain lasting competitive advantage, and Chinese firms which do not suitable for diversification should divesting non core businesses, concentrate on core business, and enhance core competence.