analysis of chinas private sector for diversification（分析中国私营企业的多样化）.docVIP

Analysis of China’s private sector for diversification Abstract: With the rapid development of China’s private economy, the private sector have begun to diversify into the era corporate diversification strategy is the same basic operation of two or more economic use of different goods or services of a development strategy. Paper Keywords: private, diversified, profit 1 Introduction Diversity can be divided into the following four specific types: vertical diversification, horizontal diversification, concentric-style diversification, conglomerate diversification. In this paper, the private sector for a wide range of reasons, combined with China’s actual case, make diversification of enterprises some suggestions. 2 Select the diversification strategy of the reasons the private sector Diversification strategy requires companies to put in a lot of new areas of production and human resources, business may be difficult to achieve short term profit maximization and cost recovery. However, in order to ensure long-term development of enterprises, the majority of business management are willing to take diversification strategy. corporate diversification strategy selected the main reasons are: (A private sector business owners want to own long-term development of China’s private enterprises in which the industry generally low profit margins, intense competition among the same industry when companies in an industry to obtain the initial development, further development may be encountered bottleneck, so most of the private sector through the development of form in the initial accumulation will choose diverse strategies to achieve a breakthrough type of long-term development. (2 private diversification is to spread business risk is an effective way. Economic development makes a wide range of consumer needs for businesses, products must meet the changing needs of consumers to long-term survival can not be confined to one or several industries. has so