On over Diversification in Operation Strategies
The strategy of diversification is one of the basic operation strategies. But, many corporations are prone to get into over diversification subconsciously, by which too many business units belong to different industrial fields are engaged in and hereby the performance becomes bad. This paper firstly analyzes the reasons for over diversification, and then investigates how to qualitatively judge and quantitatively evaluate it. Qualitatively, corporation value, customer value, management performance, operation risk and management cost can be taken to judge the extent of over diversification. Quantitatively, market value added and economic value added can be adopted to evaluate whether the corporation as a whole and every individual business unit individually has been in the state of over diversification respectively.
Operation strategy Over diversification Strategy management Diversification strategy
WEI Guangxing LIU Wenyao
Research Center of Sustainable Construction and Risk Management,Chongqing Jiaotong University,Chongq School of management,Chongqing Jiaotong University,Chongqing,P.R.China,400074
国际会议
2009 International Conference on Management Science and Engineering(2009管理科学与工程国际会议)
北京
英文
239-244
2009-11-01(万方平台首次上网日期,不代表论文的发表时间)