Poly

Author: Wang Gongyi
Publisher:
Publishing Time: Not Available
Features: Summary of the Content
This book primarily studies the relationship between corporate diversification strategies and organizational structures. The main arguments are as follows:
1. The establishment of corporate diversification is primarily determined by objective internal and external environments and conditions, a historical product of economic development at a certain stage. The impact of external environments mainly includes four factors: (1) market demand saturation (affecting the survival and development of domestic and international markets), (2) costs rising to an unbearable level, (3) government antitrust measures (in the countries and regions involved), and (4) diversification of social demand. The influence of internal conditions also includes four factors: (1) the development of potential surplus resources within the enterprise, (2) the gap between operational performance and strategic goals, (3) diversifying corporate risks, and (4) expanding production scale. These eight objective factors determine the content and form of corporate diversification. Based on the domestic and international market environments faced by Chinese enterprises, the author proposes selection principles for diversification strategies that are suitable for the realities of Chinese enterprises.
2. Structure follows strategy. Structure serves strategy, with strategy as the prerequisite and structure as the result. Structure must meet the requirements of strategy and always adjust in line with strategic changes.
3. China's market economy and corporate system are still underdeveloped, and corporate diversification is still in its initial stage. The current organizational structure is highly unsuitable for the needs of large-scale corporate diversification under modern market economy conditions. Combining the actual diversification of Chinese enterprises with the new requirements of organizational structure miniaturization, simplification, and flexibility, the author designs a multidimensional organizational structure based on the divisional system. This separates traditional product production from new product production and is complemented by democratic management where employees take the lead. These three elements form the starting point of the new design, creating a multidimensional organizational structure based on the divisional system: a new product development project center system—neon product division system—traditional product division system. This structure is designed to meet the needs of Chinese enterprises engaging in diversification strategies.