Xinhua United: Diversification Roadmap

Author: Xing Xudong
Publisher:
Publish Date: 2005-10-01
Features: Xinhua United may become China's version of GE. In fact, Fu Jun is more worthy of study for Chinese enterprises than Jack Welch. This native Chinese not only set a benchmark for the diversification of Chinese enterprises but also became a role model for entrepreneurship in this era. — Professor Lian Yuming, renowned urban research expert and president of Beijing International Development Research Institute.
The key to specialization or diversification lies in core competitiveness. Xinhua United is a successful textbook on diversification and also a practical guide to corporate strategy and operations. — Huang Wenfu, well-known expert in private enterprise research and editor-in-chief of China Business Times.
How to start a business, how to grow, how to make choices, how to execute, and how to ensure the longevity of the enterprise—these are questions that Chinese enterprises must address, and this book provides answers. — Dr. Bian Huado, renowned corporate coach, director and vice president of Jiangsu Yuan Dong Group.
The existence of Xinhua United is the greatest obstacle for all those who oppose diversification. — Li Yabo, postdoctoral researcher at the Private Enterprise Research Office of the Company Governance Research Center, Nankai University.
Diversification or specialization? This is a crossroads that every growing enterprise must choose. Although Jack Welch took the magic of diversification to its peak at GE, the diversification of many Chinese enterprises has been fraught with difficulties, to the point where some have exclaimed: "Diversification doesn't take root in China." At this moment, a hidden giant in diversification—Xinhua United Group—has gradually caught people's attention.
Although many people may still be unfamiliar with the name Xinhua United, once they hear the brands under Xinhua United, such as Jinliufu, Shangri-La Zangmi, Tonghua Wine, Chery Automobile, Hualian Ceramics, Dongyue Chemical, and Xinhua United Real Estate, they become familiar and even admire them. Xinhua United is a typical diversified enterprise. Yet, this giant with nearly 8 billion yuan in annual revenue has always maintained vigorous vitality. No wonder some scholars point out that Xinhua United is a Chinese model of the GE model. As long as Xinhua United's success continues, claiming that the path of diversification is unworkable in China would face an insurmountable counterexample.
This is a book that delves into how the diversification model can be combined with Chinese practice. The author will search for and restore the milestones left by Xinhua United at the crossroads of diversification, providing Chinese enterprises with a local textbook on diversification.