Study on the Retrenchment Strategy of Diversified Enterprises: A Case of Shanxi Ruimei Changlong Biotechnology Co., Ltd.

Huichang Wang

《International Journal of Social Science and Education Research》 6卷3期 (2023/03) Pp. 45-51

https://doi.org/10.6918/IJOSSER.202303_6(3).0008

摘要

With the intensification of changes in the internal and external environments in which Chinese enterprises operate in recent years, diversified enterprises are facing the impact of competition from multiple industries at the same time, making it difficult for them to continue to maintain their competitive advantages in diversified industries. In this context, strategic tightening and focusing resources on developing core businesses are necessary options to bring into play the market advantages of diversified enterprises. Taking Shanxi Ruimei Changlong Biotechnology Co., Ltd. as an example, this paper points out that the objectives of a diversified enterprise are not clear enough, its core business is not developed enough and its diversified business is not highly relevant. To address these problems, this paper proposes that the enterprise needs to implement a retrenchment strategy: firstly, to clarify its goals and optimize its enterprise strategy; Secondly, to upgrade its technology and focus on its core development; And finally, to divest its non‐core businesses and improve their relevance. Moreover, the paper also proposes a series of measures to ensure the implementation of the retrenchment strategy, including human resources, organizational guarantee, technology and financial security. This paper proposes that "diversified" enterprises should implement a retrenchment strategy to solve their current problems and provides a reference for enterprises caught in the dilemma of diversification strategy.

關鍵字

Diversification ； Refocusing ； Strategic adjustment ； Retrenchment strategy

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