International Conference on Engineering and Business Management (EBM 2010 PAPERBACK)

Chengdu,China,China,3.24-3.26,2010

ISBN: 978-1-935068-05-1 Scientific Research Publishing, USA

Paperback 6066pp Pub. Date: March 2010

Category: Engineering

Price: $280

Title: Study on Performance and Risk of the Diversification Strategy for China Textile Companies
Source: International Conference on Engineering and Business Management (EBM 2010 PAPERBACK) (pp 520-523)
Author(s): Jing-Fang QIAN, Dong Hua University, Shanghai, China
Fang-Jun ZHANG, China National Textile And Apparel Council, Beijing, China
Yun-Ying LIU, Dong Hua University, Shanghai, China
Abstract: Abstract: With the gradual deepening of enterprise system and expanding of the enterprise size, more and more textile enterprises apply diversification strategy in China. By studying the diversification strategy of the textile listed companies, this paper analyzes the diversification characteristics of the Chinese textile enterprises, as well as the performance and risks of the diversification strategies. The result shows that the Chinese textile enterprises mainly apply the low-grade diversification strategy and the non-related diversification strategy. Applying non-related diversification strategy can improve the performance, but also increases business risk. However, the related diversification strategy doesn’t mean the improving of performance, but means the reducing of risk. Therefore, the strategy of related diversification and non-related diversification applying simultaneously can improve the performance and reduce the risks of textile enterprises.
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