In recent years, specialization and diversification have always been key issues that enterprises pay attention to in the process of expansion, and enterprise diversification has become a typical business strategy for enterprise development. The diversified development strategy was proposed by the famous "product-market" strategy master Ansoff in the 1950s. It is a multiple business portfolio strategy formulated by the company's top management for the company. It is a strategy for the company to get involved in different industry environments. Development plans formulated for each business, including what fields to enter and how to enter, etc.
It should be said that the diversified development strategy is an important strategic choice for the development of large enterprise groups. Most enterprises in developed market economy countries, especially large multinational enterprises, almost adopt this business strategy. From the current point of view, there are mainly two completely different views; one believes that using existing resources and carrying out diversified operations can avoid risks, achieve maximum sharing of resources, and produce l12 effects, which is the only way for the development of modern enterprises. For example, General Electric Company in the United States is considered a successful example of cross-industry diversified development strategy. GE is involved in many industries such as power equipment, medical equipment, lighting appliances, radio and television media, and finance, and has become one of the largest and most successful companies in the world. Another belief is that the diversified management of enterprises will cause the dispersion of human, financial, material and other resources, increase the difficulty of management, and reduce efficiency. Perhaps everyone still remembers Shi Yuzhu, who once dominated the corporate world, and certainly will not be overly unfamiliar with that giant group that not only manufactures computer software but also produces biological products "brain gold". But now, the "giant" scene of the year has been silent. The collapse of the "Giant" image was directly related to the building that was under construction at that time. But this building is only a superficial reason. The important reason why it has no ability to recover after its fall is the blind diversification of the company's production and operations.
When business managers choose a diversified development model, they usually have certain reasons, and they are often very complicated. Changes in the internal conditions of the enterprise and the external environment may be the cause of diversification. For enterprises, the external environment refers to the market or the government, and the internal environment refers to the enterprise itself.
Reasons from the external environment:
1. Product demand tends to stagnate. The market capacity of any product or service has a certain limit. Adam's bandit's wife's poems are worth mentioning. Xing Xue 3? Jun Chuan Huan ǖ Nan Xiu? Li Di 硎苌缁山肖 に? Fei Sha Ne is looking for a maid, Tujiao Jing 酢 4 to send 猓? Wei Wei? Fan Jiajie is about to accept the drought? Zhi Zhong? Pa widow He? Raise Yongshu? Return Na? Zhi 谝 Can Xing 醵 phlegm that nightmare beer 5 generations? Anti τ Ye ネ like Jie Bao? Harmony ⌒ 枨笤龀 ぢ Show sudden Wei V shed 踔 curtain annihilation? 描? 2? Boiling 樨 笄磨蛲V STOP? 同晌?偈蛊笠刀壣? ⒄ gulley Naoban? Jie?/p>
2. The degree of market concentration. In enterprises with high market concentration, a few enterprises have advantages in terms of market and cost. If an enterprise wants to achieve a growth rate higher than the industry growth rate, it can only enter new markets other than its own enterprise. If the growth in revenue cannot match the growth in input, the company's marginal benefit will be negative and it will easily fail in the competition. High market concentration increases the cost for companies to increase growth rates in their own industries, thus prompting companies to diversify and seek development in other industries.
3. Uncertainty of demand. New enterprises often do not have advantages in terms of capital, technology, market, etc. On the contrary, old enterprises related to new demand markets have more advantages. The uncertainty of market demand will increase the risk of enterprises relying on a single market, thus motivating enterprises to pursue the risk diversification effect of diversified development.
Reasons for the internal environment:
1. Internal resource potential of the enterprise. The unused internal resources accumulated by enterprises are the driving force for entering new markets. When other conditions remain unchanged, the higher the ratio of research and development expenses to sales, and the ratio of advertising expenses to sales, the easier it will be for enterprises. Actively engage in diversification.
2. Failure to achieve business goals or poor returns in the original business field. Generally speaking, if the company can achieve the set goals, the company will have little motivation to explore new industry areas and implement diversified development; on the contrary, the greater the gap between the company's existing business policies and scope and the expected goals, the more diversified development will be adopted. The greater the strategic possibilities.
Diversified development is different from general business policies. When it comes to entering new industries and there is a big gap between the enterprise's plans, it is possible to consider changing the original plan and adopt diversified development. 3. Imbalance in vertical integration development. In the development of vertical integration, enterprises will form huge equipment and resources in sales, manufacturing, procurement, raw material production, transportation and research and development, and there will be regular imbalances in the production capacity of each stage in the vertical chain. This kind of The diseconomy caused by imbalance has become a regular pressure to promote the diversified development of enterprises.
Different strategic goals mean different levels of risks. The vague strategic goals of diversified development have led to many companies not fully estimating the risks in diversified operations and making preparations for them. In our country, many enterprise groups are not only making large-scale mergers and acquisitions in their own industry, but also entering other industries through mergers and acquisitions. Many enterprise groups have proposed to develop several pillar industries of their own, and believe that this can diversify the business risks of enterprises, thereby achieving The goal of "the east is not bright but the west is bright". However, this excessive pursuit of diversified operations. It is not in line with my country's actual national conditions and has at least the following three aspects of business risks.
1. System risk. When enterprises carry out diversified operations, they will inevitably face a variety of products and various markets, and these markets may also have obvious differences in terms of development, development, penetration, and entry. Enterprise management, technology, marketing, and production personnel must re-familiarize themselves with new work areas and new business knowledge. In addition, as enterprises adopt diversified operations, gradually expand their scale, and gradually increase their organizations, the original division of labor, collaboration, responsibilities, and interest balance mechanisms within the enterprise may be broken, and the difficulty of management and coordination will be greatly increased. In the process of resource reallocation and guarantee Enterprises will encounter greater challenges in terms of competitive advantage. If a company moves into a new field, it may make wrong decisions and suffer the risk of failure, resulting in the failure of new business projects.
2. Asset diversification. Under certain conditions and within a certain period of time, all resources of an enterprise are certain and limited. If the production and operation units within the enterprise are too dispersed, it is easy to lose the original products. Failure to follow the trend will eventually cause enterprises to lose their market and advantages in the competition with their original leading products or main businesses.
3. Cost risk. Reducing business risks through diversified development strategies requires paying a certain price. For unrelated diversified or cross-industry business development methods. It cannot be overstated that "it is safest to put your eggs in different baskets." because. Thinking from a deeper level, the basket in which the eggs are placed is also bought with money and has a cost. If the cost of making or buying a basket is taken into account, many companies may still choose to put their eggs in one basket. Therefore, enterprises adopting diversified development strategies must conduct comprehensive comparisons.
It is an objective necessity for enterprises to develop in the direction of diversification. Chinese enterprises should consider appropriate non-related diversification only when they become more refined and stronger and highlight their core capabilities by carrying out related diversification, making the enterprise bigger, achieving a high market position in the industry or the industry entering a mature stage. A reasonable choice for diversified development. Corporate diversification must not be excessive to avoid falling into the diversification trap. In today's low-profit market environment, from the perspective of the management capabilities of Chinese enterprises, they should achieve low-level related diversification on the basis of constantly adapting to the external environment and cultivating core competitiveness, and regard the enterprise's diversified development strategy as an enterprise development strategy. It is a means to further enhance the core competitiveness of the enterprise and expand the strategic resources of the enterprise through diversification.
As one of the company's management cores, the strategic development director is responsible for the research, planning, and formulation of the company's development strategy. He must be good at formulating appropriate strategic development directions for small and medium-sized enterprises in the general environment.