The Research On Evaluation Index System Construction Of The Diversification Strategy Target Industry Of CSR Zhuzhou Electric Co.Ltd

Diversification is a significant strategic initiative for the further development of a certain scale enterprise.With the globalization of the market economy and the continuous adjustment of industrial structure,whilst enterprises continue to strengthen the core business they undertake an increasing number of investment,restructuring,Mergers and Acquisitions(M & A)activity.Those factors affecting target industry choice are considerably diverse and complex.Although scholars have researched into the theory of diversification there's inadequacy of practical methods to enter diversified industry,making it difficult to guide enterprise practice.Thus to evaluate diversified target industry choice is a primary factor to the success of corporate diversified operation strategy,playing a significant role in diversified strategy and directly influencing the performance of corporate diversified strategy.Therefore it's quite necessary and important to build a practical and effective diversified industry choice evaluation system.This paper takes the selection evaluation method of the target industry of diversification strategy of CSR Zhuzhou Electric Co.Ltd during the "13th Five-Year Plan" period as the research object.Firstly,it reviews the theoretical basis of diversification and reviews the relevant literature on the selection of diversified target industries,and it establishes the index system framework based on “target industry attraction-synergy of core resource and capability-industry development target and route” by combining the relevant theory methods.Secondly,it summarizes the one decade diversified development experience of the CSR Electric Co.Ltd and the existing problems and reasons compared with the industry benchmarking enterprises and competitors.Thirdly,it analyzes the industry attractiveness,relevance and synergy,industrial development planning tec.to establishes the index system and determine the weight of each index,according to the system analysis method,analytic hierarchy process(AHP)and factor analysis method.Finally,the index system is applied and analyzed.The research achievement of this paper is a set of logical,structurally complete,adequately quantitative and applicably convenient assessment index system with the following features.Firstly it's systematic and original.This paper absorbs such advanced results as multiple operation,industry research and analysis and synergy research.Secondly it highlights quantitative analysis to enhance its practicality and adopts hierarchy analysis and panel scoring method to sort out the internal relation between respective index,making it easier to apply it to practice.Meanwhile the index system is of much more guiding and practical value.Firstly it's to guide industry project selection for CSR Electric during the “13th Five-Year Plan” to optimize industry integration and combination.Secondly it 's of great reference value for the diversified strategy of enterprises of the same type.