Dissertation > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Operating decisions

The Research on Diversification Strategy of Yankuang Group Co.,Ltd.

Author ZhaoXinYe
Tutor WangYiMin
School Shandong University
Course Business Administration
Keywords Yankuang Group diversification strategy parenting advantage heartland business
CLC F272.3
Type Master's thesis
Year 2013
Downloads 31
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Yankuang Group is an extra-large state owned enterprise in Shandong province, mainly engaged in coal, coal chemical, aluminium and machinery manufacturing businesses. In recent years, Yankuang faced huge development challenges. Its coal business has successfully realized international operation; while its coal chemical and auluminium businesses experienced difficult conditions. How to decide diversified strategy is critical to Yankuang’s sustainable development.First, the paper compares and analyzes traditional diversification strategy and parenting advantage theories, and finds out that the fitting between the parent and its business units is critical to the success of diversification strategy. Therefore, the paper studies Yankuang’s diversification strategy mainly with parenting advantage.Second, the paper analyzes Yankuang’s diversification strategy, diversified business choice with the help of PEST analysis, Michael Porter’s Five Forces Model, as well as Yankuang’s diversification strategy study model based on studies of its characteristics of the parent and characteristics of the business, and it defines Yankuang’s parenting advantage statement as "value creation insights, distinctive parenting characteristics and heartland business". Then, based on these analyses, the paper generates Yankuang’s diversification strategy and provides implementation advices.The innovative point is that, the paper, with parenting advantage theory and traditional strategic studying tools, targeting at how the parent create value for its subordinate units, comprehensively studies a big company’s diversification strategy, but not only paying attention to the business level. By studying the fitness between the parent’s characteristics and its current business characteristics, the paper repositioning Yankuang Group’s three main businesses, generate new diversification strategy. The paper has significant guiding meaning on corporate restructuring diversified business, as well as its sound and sustainable development.

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