A Study On Refocusing Issue Of Industrial Bank

The development of enterprises is that enterprises change constantly with the changing background or environment. It can be seen from the evolution of enterprises in practice that, with the variation of market environment, enterprises’development have been changed from specialization to diversification, and then to refocusing. Under the specific period, as one form of enterprises’strategies, diversification helps many enterprises to enter the widespread industry, and creates broad space for enterprises development. Regard to Chinese small and medium banks, external market environment checks the development of diversified operations, while ineffective internal risk control discourages them to diversify operations.Overindulgence in scale expansion distorts diversified operations,while blurred market position leads to following suit blindly. In current situation,refocusing comes into being as the correction of diversification and the history of famous international banks has proved that.It can instruct banks to optimize the disposition of resources,to straighten the management center, to develop and consolidate the core competence,and to further enhance the capacity when facing the changing industry and the more competitive market so that small and medium banks could accommodate themselves to current environment for further development.Refocusing has already become a hot issue in theoretical and industrial circles.However, the theory of refocusing has not yet been a system,neither used well in practice. Most of those searches are concentrated on the aspect of understanding the "core".The application of the research is also deficient when instructing practice.Therefore,this paper focuses on the application of the theory, and constructs the two-step path way of refocusing through the drawing of dynamic capability theory, with the hope that it can be helpful for small and medium banks to sustain the continuous development.By comprehensively using the theory and the method of economies and administration,this paper takes the development and enhancement of dynamic capabilities as the breakthrough point;decompose the process of implementing refocusing.This paper also proposes that refocusing is constructed with the two sections of "profit from the core" and "beyond the core" for further development of core competence.The first chapter is the introduction part which provides the background,the significance,as well as the content and the method used in this paper, by reviewing and researching on the past practice and references, the second chapter re-recognizes refocusing, and explains that it is the correction of diversification. On this basis, the paper points out that refocusing strategy are constructed with "profit from the core" and "beyond the core". In the third chapter, paper introduces the background and path of Industrial Bank’s refocusing and briefly analyzes the reasons of carrying out refocusing. Then, the paper point out that the key of implementing refocusing contain time, origin and specific methods. In the fourth chapter, planning strategies of Industrial Bank’s refocusing,firstly, paper recognizes and evaluates dynamic capabilities, and discusses the core businesses and preliminary tactics of refocusing.