Study of the Risk Management with Diversification Strategy of Enterprise C
|Keywords||Diversification strategy ENTERPRISE C SWOT analysis Risk management|
Diversification strategy means an enterprise manage in two or more different products or service in the same time. Diversification strategy includes related and unrelated strategy. Peter Drucker said that there was right diversification strategy and wrong diversification strategy. Diversification caused production materials dispersed. It will strengthen the competitive advantage if use the surplus production materials and the diversification strategy reasonably. Otherwise, it will lose advantage, reduce and even to destroy competitive ability with unreasonably diversification strategy. So, it is very importance of full risk management system such as risk identification, risk assessment, risk control and risk supervision during diversification management.This study object is enterprise C. The article conducts the study by using a combination method of theory and practice. It analyzes enterprise C diversification strategy background, current status. It applies on SWOT analysis tool to analyze the competitive strengths, competitive weaknesses, external opportunities, potential threats in different business so as to identify the management risks. Then, we can assess the risk through the combination of quantitative analysis and qualitative analysis. After that, we will create a plan to control the risks. Also, it combines the risk index with our merit system of key performance and monitors the management risks by regular review of our merit system of KPI. All in all, it can ensure the diversification strategy successfully by the full risk management system.This research achieved the management staff’s great support. The emphasis management risks were showed in enterprise C’s key performance index so as to regular review by the full risk management system. Also, this study supports some good suggestion of management and resolves some question during the research process.