| Jilin Provincial Power Science & Technology Co., Ltd. is a high-techenterprise armed with high-tech modernized laboratory equipment and testmeans as well as strong intelligent personnel structure that transformed fromthe former power test research institute, i.e. the Power Scientific ResearchInstitute of Jilin Province. For the past 40 years or so, it has been acting as thetechnical supervision center, technical service center, technical developmentcenter, technical information center and high and new technology trainingcenter for the power industry of Jilin Province, with its business scopecovering all aspects of power production.Under the new situation of structural reform on power system and onscience and technology system of the state aiming at marketization andindustrialization featured mainly by "Gradual separation of power plant fromthe network, going on power network through price competition,establishment of regional power network company and formation of powergenerating market", this development strategy of the company is made forkeeping existence and development of the company, making appropriateconsideration of the present situation, balancing its own advantages anddisadvantages, fully exercising its superiorities in qualification, personnel,technology, equipment, prestige and environment accumulated by thecompany during the past 40 years, holding the opportunity, and avoiding riskand threats.This thesis uses the SWOT analysis method of MBA core theory ofStrategic Management, BCG matrix analysis method and other analyticalmethods, to analyze the advantages and disadvantages of the company itselfconcerning the opportunity and threats from the external environment of thecompany in combination of its existing recourses and business operationsituations.Starting from BCG matrix analysis, now 5% business of the company lieswithin the problem matrix, 0% lies within the dog matrix, 30% lies within thestar matrix, and 65% lies within the cash bull matrix. Technical supervisionand technical service are the main source of cash for the company, thecommissioning work is the star business, which is expected to become a cashbull business in present time when the power construction scale is vigorouslyexpanded. The development of new products is insufficient, which belongsto the problem business of the company, and needs to be improved.Appropriate measures will make it the new economic growing point of thecompany. Now, the existing business of the company has no dog matrix.SWOT analysis shows that the company has following existingadvantages:1. It has the advantages of competent personnel at high level, who aregood at scientific and technological creation. 2. It has technical advantagesand experience in power production and service. 3. It has rather perfect andadvanced equipment advantages. 4. The brand has reputation advantageswithin Jilin Province. 5. It has geological advantages within Jilin Province.Disadvantages:1.Its market exploration capacity is deadly insufficient. 2. It lacksexcellent professionals. 3. It does not have sufficient capacity of design anddevelopment, and now leading product and industrialization have beenformed.External opportunities:1. The 16th Central Conference of CPC is held, which proves politicalstability of China. 2. GDP maintains stable and rapid growth, and as theinfrastructure of national economy, the power industry will be developed first,which will bring unprecedented development and new opportunities for thecompany. 3. Central Party Committee, State Council and governments anddepartments at different levels have been paying much attention to safetyproduction of the power industry. 4. The policy of state determined on powersupply structure is favorable for determination of development direction of thecompany. 5. The strategic decision of the state on revitalization of the oldindustrial bases in the northeast China is favorable for expanding theconstruction scale of the power industry in Jilin Province.External threat:Conflict of interest between different subjects of the power market arisingfrom structural reform of the power industry may directly affect the safetyproduction of power industry, and also, affect the development of the company.2. With the system transformation of the company, it will lose the financialsupply from the former overhead authorities. 3. The economy of Jilinprovince is backward, the power source construction scale is small, which isunfavorable for development of the company. 4. There are increased numberof hidden defects affecting safe operation of the power network, and safetyproduction of power industry faces severe trial and challenge.According to SPACE matrix analysis, now the company should adopt thestrategy of attacking type.Based on the above SWOT, SPACE and BCG matrix analysis,and inconsideration of existing recourses and business situation of the company, thefollowing strategies should be adopted:1. It should adopt the focusing strategy to distribute the main force ontothe existing major customers, i.e. the original power generation and supplycompanies within the province. It should explore further potential to obtainlong-term stable cooperation with them through improved service.2. Market permeating strategy. It should expand the existing servicescope, i.e. during the process of technical supervision, through close contacton site, it should find technical problems to be solved and the demand so as tocatch up new opportunities to provide technical service and enlarge the marketshare.3. Market development strategy. It means to obtain new objects to serve,and such objects for technical supervision and technical service will beextended from the power system to the local power plants, and self-supplypower plants outside the system, from thermo-power generation to cleanpower generation, and from the power market in Jilin Province to the powermarket outside Jilin Province so as to expand the market share.4. It will adopt the OEM (Original equipment manufacture) strategy, i.e.long-term strategic union will be established between two sides: one side(Client) provides technology, know-how, design plan, market, specification,standard, quality requirement ands other product essential elements, while theother side (Manufacturer) will manufacture the product according topurchasing order, which is also called the entrusted manufacture. Withexcellent technical output capacity, excellent brand image, extensive marketnetwork within the power system of Jilin Province, strong productdevelopment capacity and technical control capacity, the company willstrengthen the new product development force and seek for new economicgrowing points.Conclusion: For a key infrastructure sector like the power industry, toguarantee safe and reliable power supply will be always of the first importance.Power safety is the prerequisite for healthy development and normal operationof the power industry, and power safety is the largest profit. Nothing will besignificant without safety. The rapidly developed power industry must set thesafety at more important position. Therefore, we should fully exert advantagesin technology, personnel, equipment, and profession accumulated for years,rely on power industry, stick to the development strategy of booming safetyproduction by science and technology, make parallel emphasis of technology,... |
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