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The Research on Business Diversification Strategy of KF Co. in China

Author: YuePengCheng
Tutor: ZhaoGuoJie
School: Tianjin University
Course: Business Administration
Keywords: Gypsum building materials Theory of business diversification SWOT analytic model GE Matrix
CLC: F272
Type: Master's thesis
Year: 2011
Downloads: 58
Quote: 0
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Abstract

As the leading company in gypsum building materials worldwide, with its abundant R&D strength and manufacturing ability, the exquisite production craft, the remarkable and perfect quality control system as well as the highly effective marketing and management system, KF Co. invested in China and build three plants successively from 1998. Since then, after around ten years’hard work, KF company finally established itself steadily in the gypsum building materials industry of China. However, in the last few years, with the rapid expansion of local enterprises production scale which resulted in more fierce competition, and more counterfeiting action emerging resulting in the worse environment of management, KF is taking more and more pressure on the business increase and profit improvement and feels more difficult in its operation. Under this situation, therefore, nowadays it has been the key problem what is the suitable and accurate strategy to guarantee the business growth for the future and how.This paper, through deep analysis on the current operation status of KF in China as well as its barrier to business growth, combined with the outer analysis on the macro economic development environment, industry competition situation and market demand situation and the inner analysis on the resource and capability of KF, is managing to talk about the feasibility of business diversification and formulating the action plan proposal for the implementation of the strategy from the significant reference to the theory of business diversification with the utilization of“SWOT analytic model”and“GE Matrix technique”.This article sets about from the development process and the present business situation of KF Co. in China, in view of the main difficulty and the development bottleneck of KF Co. currently in China, launches to the research on the strategy of business diversification to KF Co. in China. The full text is divided into three major parts: the first part, from the first chapter to the third, introduces the research background and significance, the text content and frame and, the innovation point as well as the research’s theory basis on business diversification, and emphatically introduces the main difficulty which KF Co. faces currently in its development in China; the second part, from the fourth to the sixth chapter, is the text’s hard core, and through the analysis to the necessity and feasibility of business diversification strategy of KF Co. in China, has determined the business diversification strategy for the development of KF Co. in China, and then has studied the strategy’s direction and the business development direction, and proposed some key issues which KF Co. should pay attention to in the development of the strategy in future; the seventh chapter, which is the paper’conclusion part, has carried on the whole summary to the paper and its limitation of research, simultaneously has made the forecast to present’s research

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