Strategy Study In Carca Company’s Diversification Development

Diversification strategy refers to enterprise’s business operation in in two or more industries, which is a business strategy to provide more than two kinds of products or services to different industries or markets, containing Concentric Diversification (or "Related diversification") and Centrifugal Diversification (or "Non related Diversification"). Diversification Strategy is a long term planning for enterprise’s diversified operation and a main form to growing company’s strategy. Brought by Mr. H.I. Ansoff, an American scholar, in 50s of last century and further stated in "Enterprise Growth Theory" by Mr. E. T. Penrose and improved by other scholars such as Mr. R. P. Rumelt, the concept of "Diversity Strategy" aims to research how to warrant enterprise’s long term development and expansion when it reaches some certain stage by fully developing its advantage and resources, improving operation benefit.The writer, by using theories of strategy research and management, analyses CARCA Company’s ("CARCA") main difficulties, summarizes the lessons drawn from CARCA’s history, analyses Macro environment, industry environment and internal environment CARCA is facing by modern strategy analyzing mode, etc. "PEST", "Porter five forces" & "SWOT", reveal the necessity and feasibility of implementing Diversification Strategy. And further, the writer analyzes and makes research how to design CARCA’s diversification strategy status by GS mode, put forward the principles and target how to make CARCA’s diversification strategy, describe the status and trend of CARCA’s diversification strategy in details, and makes related suggestion how to select each business strategy by using the Boston Matrix. At last, the writer elaborates the major measures, related safeguard Measures, organization structure improvement and potential risks for CARCA to implement diversification strategy and suggestion of risk control.The writer views at general development of China’s small & medium sized enterprises while analyzing CARCA’s strategy research, expecting to provide reference to operation and strategy research to China’s small & medium size enterprises, listing companies in particular.