Research On The Management Strategy Of Diversification For Yun Jing Forestry & Pulp Company

Affected by the global financial crisis and domestic economic depression,the market demand of pulp,plates and other forest products are experiencing a downturn,which leads to a continuous decline in manufactured goods prices.Growing shortage of wood materials as well as the slumping demand in wood products increases the pressure on the production and operation of wood-processing enterprises.As a result,some factories can only maintain existence with the disposal of assets or government subsidies.In the circumstances,diversification of management is an inevitable choice for wood-processing companies to get themselves out of stuck and realize transformation development.This paper takes YunJing Forestry & Pulp Company,the largest scaled forestry enterprise in YunNan province,as the research object,and discusses about current market situation and corresponding management strategy.First of all,this paper reviews the theoretical research on the management and operating performance of forestry companies at home and abroad,and conducts a SWOT analysis of the operating conditions of YunJing Forestry & Pulp Company in accordance with its external operating environment and internal operating conditions.Secondly,according to the SWOT analysis results,the diversified business strategy of YunJing Forestry & Pulp Company's future production and operation was determined,and specific strategies such as extending the forestry pulp and paper integration industrial chain,broadening the product structure,improving the planting structure of raw material forests,and comprehensive development and utilization were proposed,and then analyzed detailedly the risks such as resource fragmentation,industry entry,business management,and brand extension that may be brought about by diversification.Finally,from the three aspects of capital structure,raw material supply,and operation management,we analyze the diversification protection measures,and propose countermeasures to strengthen the core competitiveness,optimize the industry structure,innovate system management,and increase brand efficiency in response to possible risks.This study not only has great significance for YunJing Forestry & Pulp Company to improve the operating level and profitability of industrial raw material forests,but also provides valuable reference for the improvement of other forestry enterprises' business strategies.