A Preliminary Study On Strategy To Improve Core Competitiveness Of CHEC

With the traditional planned economy system's breaking, modern market economy system's foundation, and the in-depth reform of electric industry, the competition is aggravating day by day, which determines CHEC (CHINA HUADIAN ENGINEERING (GROUP) CORPORATION, abbreviated as CHEC) must adjust it's operation to suit the need of the market economy competitiveness. It is key to CHEC to use the relevant theories of strategic management to choose and determine the strategy that suits its development scientifically and rationally.Firstly, this paper analyses the problems existing in CHEC's current business process and finds the cause to these problems by using the comparative analysis approach and case studies, and then studies the necessity and urgency of the formulation of the development strategy to improve its core competitiveness. On this basis, by using relevant strategic management theories, such as diversification development strategy theory, value chain theory, core competitiveness theory est., and by studying the external competitive environment of CHEC and inside business operation conditions deeply, it plans CHEC's development strategy of foster and promote the core competitiveness. By using Campbell's matrix analytical method, it orientates the strategic direction, puts forward the idea that CHEC should construct four major business modules in total strategy, and makes three "three–year development plans" on the tactics of business development, human resources management and capital operation, which have key roles to support the four major business modules. By using AHP method and relevant models, it appraises the competitiveness advantage of CHEC. Meaning while, by using Business-technical ability model now applied by CHEC, it discerns CHEC's capability. It also proposes the strategic thought of constructing "the Leading Service Provider of Power Generator and Grid Operator in the Industry", and makes the concrete implementing scheme of improving CHEC core competitiveness on the basis of the analyzing the feasibility of CHEC strategic choices. This paper cannot only benefit the improvement of the management and administration to CHEC on increasing the profit and obtaining sustainable development, but also can be referred by other similar enterprises.This paper can not only benefit the improvement of the management and administration to CHEC on increasing the profit and obtaining sustainable development, but also can be referred by other similar enterprises.