Application of Clustering Algorithm in Corporate Strategy and Risk

With the increasing rise of market mechanism and corporate strategic management theory, many companies, especially listed companies, take diversification as their basic strategy. As the main source of power to promote the rapid development of China’s economy, listed companies have also changed the way of China’s economic development. It increases the speed of economic development, improves the level of economic technology, and accelerates the process of economic internationalization. Any economic behavior of an enterprise involves risks. As the development plan to mobilize the overall interests of the enterprise, the strategy will definitely involve the long-term development direction of the enterprise. Enterprise strategic deployments to strategic managements are affected by risk control elements. Strategic risk, as an unavoidable practical problem for enterprises, must be managed. Managing strategic risk is the key to effectively evaluate the management and control system. In order to solve this problem, this paper introduces a clustering algorithm, classifies the strategic risk of diversification, and analyzes its causes. For an in-depth analysis of the risks that diversificatio