A Study On The Difficulties And Countermeasures For Diversified Of Shantui Company

With the celerity economic development in China since 1980,many groups of companies grow up gradually.These companies stand out in each business,and some of them even take large advantages to compete with others.Business in essence requires business expansion to make more profit.Thus,diversification strategy is taken by many companies,e.g.Shantui Construction Machinery co.,Ltd,where the author has ever worked for.Based on the working experience of multi-business development in the company,this study summarises and analyses the diversification strategy.It also provides some suggestions.This study takes the methods of literature review,case study,PEST analysis,SWOT analysis,etc.Based on the analysis of Shantui,this study summaries the diversification strategy.It explores the background,implementation and effects of diversification strategy.This study takes an example to analyse and present how to promote diversification strategy in companies.Meanwhile,this study has also examined the difficulties to promote diversification strategy and provides some suggestions.Through the case study,the author suggests the important necessity to promote diversification strategy in Shantui.However,as for the problems out of unclear aim,slow management,arrogance,support absence,etc,many companies develop in predicament.For these problems,the author suggests the necessity of adjustment of management system,resource allocation,cultural development,capital operation,etc.This study aims to provide suggestions for companies with diversified predicament and for their decision makers to avoid traps during diversification development.