The Study Of H Group’s Non-related Diversification Strategy Choice And Implementation

After a certain degree of development,enterprises will encounter bottlenecks in development and face many problems.Diversified business strategy is a business strategy adopted after the development of the enterprise to a certain extent,in order to avoid risks and improve business performance.Since it was first proposed in the 1950 s,it has gradually become adopted by many companies and has become mainstream.Adopting appropriate diversified operations can promote the rapid development of enterprises and create a lot of benefits.On the contrary,it is not conducive to the development of enterprises.The diversification strategy can be divided into relevant diversification strategies and non-related diversification strategies based on whether it is related to the original business.How to adapt the enterprise to the choice of diversification strategy is very important,and the choice of diversification strategy will also affect the performance of the company.H Group is a large domestic state-owned steel company with a long history.Due to the industry cyclicality of steel companies,in order to diversify corporate risks,obtain better profits,and promote the development of the company,since the 1990 s,it has begun a diversified development path and involved in the steel trading industry in related industries.The environmental protection industry has been involved in the real estate industry,tourism industry,digital industry,education industry,health industry and other industries in non-related diversified industries.H Group’s non-related diversification strategy has fed back the development of the steel industry in a certain period of time and promoted the sustainable development of the company.From this point,it can be considered that it has achieved certain results.However,H Group also has problems in implementing non-related diversification strategies.If these issues are ignored,it will affect the implementation of the company’s non-related diversification strategy and hinder the company’s development.With the development of economy and society,the competitive environment has become increasingly complex,market opportunities are fleeting,how to scientifically and rationally layout industries,how to promote the development of diversified industries in severe market competition,is the Group’s development of non-related diversification strategies The primary consideration.This paper takes H Group as the research object,and collects a large number of historical data of the group and consults many literatures to conduct case analysis of its non-related diversification strategy.This paper first introduces the general situation of H Group,briefly introduces the enterprise information of the group,analyzes the main business and related diversification of H Group,and then analyzes the non-related multi-industry of H Group.Secondly,it analyzes the motivation of H Group to develop non-related diversification.From the “13th Five-Year” development plan of H Group,the problems existing in the main steel industry and the causes of the risk of the main business of steel,analyze the motivations of the main business risks,the overall advantages accumulated from H Group,the environmental protection sector,the digital economy sector and The technical innovation section conducts specific analysis to find the drivers of new business growth areas.Then,through research on H Group’s non-related diversification strategy implementation goals,implementation and performance,it finds problems in the implementation of non-related diversification strategies.In response to the problems existing in H Group’s development of non-related diversification strategies,countermeasures were proposed from the aspects of industrial synergy,corporate culture,operational mechanism,industrial fund and talent team construction.Finally,it summarizes the implementation of the Group’s non-related diversification strategy,proposes suggestions for improving thenon-related diversification strategy,and expects to provide reference for the implementation of non-related diversification strategies by domestic state-owned steel companies.