Research On The Optimization Of YC Group 's Diversified Development Strategy

In the overall international and domestic competition background,strategicmanagement gradually become the commanding center of the enterprise development,and hold the key of grasp the overall situation,flexible operation, searchingadvantages and seek winning for the Group. Diversification strategy become afavorable strategic choice among big group corporation, and as a mode ofdevelopment obviously overcoming specialized mode. But, it is not suitable for allthe enterprises. The key to success of the diversification strategy within the enterpriseis recognition,usage and development of core competence. Thus, the primary problemof most enterprise facing is searching for suitable diversified operational strategy, andmake it yield well in the development of enterprise.YC Group is state-owned provincial key enterprise. The exploration of Group’smining area began in the late1960’s, and after40years’ developmental construction,the main business of the Group has changed from coal mining single business modeto coal mining, coal chemistry, electrolytic aluminum and the manufacture of wholeset of electrical equipment as the three major business, besides the Group also hasindustries as a whole development pattern such as:Construction and installation, realestate, logistic and property management. The Group form "Three ChemicalIndustrial Park" in the headquarter of the Group, and Odors in Inner Mongolia,Guizhou, Yulin in Shanxi, Xinjiang, Australia as "Five Major Industrial Base" in theGroup’s layout.This paper is based on diversification strategy and use the diversificationstrategy theory results and advanced practical experience in international anddomestic, this paper has done a pilot study of diversification strategy in YCGroup.This paper process SWOT analysis for the external industrial environment andinternal condition based on the development practice of industries within the YCGroup. The results of the SWOT analysis indicate the advantages of YC Groupinclude innovative ability in technology, favorable operation platform in capital, solidindustry foundation, brand prominence and abundant in resources. And the results revealed several disadvantages include short industrial chain, unreasonable talentstructure, and incompetent research ability in new industry. The opportunities mainlyinclude the continuously increases in energy demand, national encouragementpolicies in merger and reorganization, and external development strategy.The threatsinclude the government strengthening the degree of environmental protection lawenforcement, and the control of high energy-consuming enterprises’ development andthe adjustment task according to current policies is huge.Using Boston ConsultingGroup Matrix analysis development direction in every industry of the Group, theresults indicate coal mining, coal chemistry and whole set coal mining equipmentmanufacture three major industry, propose the objective of optimize YC Group’sdiversification strategy, and make adjustment in industrial layout, propose measuresof implement diversified operation and support system of diversified operation. Themain measure of implement diversified strategy:First,Merge external resources,develop coal mining industry;Second,Reducing the cost and increasing the efficiency,focus on the development of coal chemical industry；Third,Increasing investment,extend electrolytic aluminum industrial chain；Fourth,Expand market, promotingwhole set of electrical and mechanical equipment manufacture industry development；Fifth,Clean up and consolidate small,micro and deficient enterprise. Turn to strategicnew industry.Supportive system: First,Establish a sound control and managementsystem, using strategic management as leading factor; Second,Strengthening andperfecting human resource security system；Third,Set up financial guarantee system；Fourth,Perfecting technological innovative system； Fifth,Perfecting digitalinformation network system.This paper adopt a research method combined theory and practice, not onlysupported by the theory but also has the foundation of practice.Thus, this paper isvaluable to the development of other similar enterprises.