The Probe On The Diversification Of China Tobacco Chuanyu Industrial Corporation

Actually, the tobacco industry is the sunset industry. Although nowadays Chinese tobacco industry owes many advantages such as the large market scale, the highly growth of the market, the highly monopolistic market, and so forth. The information I gathered from the change of both home and abroad environment, the tobacco industry has no capability of the sustainable development.From the view of the enterprise life cycle, all enterprises must comply with the process from the foundation to the maturity and further on to the decline. Although there are some particularities on the manage mode of the Chinese tobacco industry, the doctrine that either the firms and organizations becoming ruined or beginning to undergo metamorphosis are predetermined by fate. The ways of reallocating interior and external resources of company, developing the core competitiveness of company, and then carrying out the multi-line operation are the only ways out for the Chinese tobacco industry in the fierce competition.First of all, this paper studies certain theories of the diversification of the enterprise, including the theory of enterprise strategic management of the diversification and the theory of enterprise life cycle. And it also discusses the necessity and inevitability of the industry's development according to these theories. Secondly, the author collects widely the history and the situation of the industry, and analyzes the importance and the urgency about the diversification of the industry according to the PEST and the SWOT. At last, it integrates with the author's work experience, discusses the execution of the multi-line operation about the China Tobacco Chuanyu Industrial Corporation. Furthermore, this paper connectes between theory and practice to probe the feasibility and the reality of the multi-line operation of the company.