Return to the main drinks business.doc

 PAGE \* MERGEFORMAT 3 Return to the main drinks business I recently read Chris Zook (Chris Zook)’s ‘return to core’ of the book, which describes such a theory: focus on its core business is the trend of globalization, it would never stop. When the business become more global, our competitors have become more and more focused, most of the company found that, in order to profit, they have to be more focused rather than spread. To open up new business is indeed important, but this should be limited to those that will strengthen the existing core business, or with closely related. If there is a cycle, that is, every company in its entire history, have followed this path: focus on core business - from the core business expansion - to redefine the core business. This can not be said to return to our main business of a good wine enlightenment. A time period, China From EMKT. companies invariably carried out and together the industry’s expansion activities, ‘diversity’ and ‘diversification’ was a fashionable word. Drinks companies are not exceptions:-made cars, repair roads, engaging in electronics, to open the hotel’s everywhere. Business into new areas for different reasons, but the drinks company the most common reason for cross-industry business is ‘too heavy taxes, the market chaos’, ‘wine industry, profit growth has been limited’. Hence, many wine companies unable to withstand the temptation, or outside the industry could not bear the torment of the industry into the sea by the waves. In their view, the development of new industries can get excess profits, particularly in high-tech industries, traditional industries can get much higher than the profits. At the same time, some companies found that ‘resting eggs in the basket’ the better of the token, one-sided view that the widespread practice of diversity management, will enable enterprises in the wine industry downturn, earnings from other industries be compensated. On the surface this seems to reduce risk