A Study On The Relationship Between Regional Environment And Enterprise Strategy

The formation of enterprise strategy is a complicated work in relation to society, politics, economy and culture, etc. An appropriate enterprise strategy is the key to success. This paper, on the base of the former enterprise strategy theory, argues that the analysis of certain regional environment should be taken into account in formation of enterprise strategy, and then justifies this point of view by taking the Henan Lotus Gourmet Powder Group Co.Ltd as a case study. Besides the preface and conclusion, this paper is composed of four parts:The first part introduces the conception of enterprise strategy and some correlative conceptions firstly, then on the basis of recalling and concluding the evolution of the enterprise strategy theory, puts forwards the enterprise strategy theory based on regional environment.The second part is a narration of the influence of regional environment on the development of enterprise. First, This part argues that exploiting regional environment is a main way that enterprises can gain competitive advantages. Second, This part illustrates the relation between various types of enterprises and regional environment. In a word, an enterprise can make rapid development by taking full use of advantageous factors of the region in which it is located,The third part, on the basis of studies on enterprise strategy theory, illustrates the processes of forming enterprise strategy on the condition of considering regional environment. The main aim of this part is, for an enterprise, how to use advantageous factors of the region and avoid disadvantageous factors to gain competitive advantages by forming enterprise strategies based on the regional environment.The fourth part is a case study on the Henan Lotus Gourmet Powder Group Co.Ltd. This enterprise forms various enterprise strategies in different stages of its development according to the regional environment and gets rapid development. This case study demonstrates the importance of regional environment in forming enterprise strategy.