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J4  2009, Vol. 6 Issue (8): 1077-    DOI:
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Divestiture Condition for Resource Allocation Divisions of Enterprises
 YIN Yu-Sheng, GUO Yao-Huang
Southwest Jiaotong University, Chengdu, China

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Abstract  

This article focuses on the divestiture condition of resource allocation divisions in enterprises. Firstly, the control model of the resources allocation division is established and the efficiency notion used in the article has been defined. Then, we analyze divestiture conditions of both single-resource allocation division and multi-resources one respectively, put forward the formulas calculating the dividing point that decides whether a resource allocation division can be divested. We conclude that in completely competitive markets, the resources can be divided at the dividing point into the highly scarce and the lowly scarce resources with the former should be allocated by the resource allocation divisions and the latter by the market. If the allocation efficiency of resources by the market is lower than by the resource allocation divisions of the enterprise, the resource allocation divisions should substitute for the market and vice versa.

Key wordsdivestiture      resource allocation division      control cost      efficiency      dividing point     
Received: 20 August 2008     
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YIN Yu-Sheng
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YIN Yu-Sheng,GUO Yao-Huang. Divestiture Condition for Resource Allocation Divisions of Enterprises[J]. J4, 2009, 6(8): 1077-.
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