The Growth Strategy Of Hanjiang Group

Growth strategy is a kind of strategy that makes business enterprise develop to achieve its higher goals from the current strategic foundation. Essentially, only growth strategy can expand the scale of business enterprise constantly. Any successful business enterprise will experience different periods in the implementation of growth strategy. In the past few years, Hanjiang group has grown steadily and quickly, kept consecutive earnings and created considerable economic and social benefits. But, under the current macro-regulation and with the implementation of the middle-route project of diverting water from the South to the North, Hanjiang group faces a completely new environment with both opportunities and challenges.In this paper, the author first introduces Hanjing group and its industry status. After summarizing correlative theories of growth strategy, internal audit and external audit are performed. Thought analyzing the critical resources, the major commonly-operating businesses and the industry chains of Hanjiang group, the writer has found out the growth ways and methods adopted by Hanjiang group in the past. Then the outlets for Hanjiang group to realize its reincrease are educed. Finally, the new growth strategies of Hanjiang group are confirmed and implemented.This paper is divided into five chapters:Chapter 1—Hanjiang group and its industry status. The writer introduces the generalsituation and historic stages of Hanjiang group first. Then the author makes clear the relation between Hanjiang group and the middle-route project of diverting water from theSouth to the North. The industries of Hanjiang group are introduced respectively, i.e. powergenerating & supplying industry, high energy consuming industry and other industries.Chapter 2—The correlative theories of growth strategy. The categories of growth strategy, characteristics of business enterprise, reasons to adopt growth strategy and the terms of its application, the advantages and disadvantages of growth strategy are summarized respectively.Chapter 3—The external assessment of strategic environment. In the analysis of the general strategic environment, the writer mainly investigates the macro-economy, the national macro-regulation and the regional policies. In the analysis of the industry strategic environment, the author studies the electric power industry, aluminum industry, ferroalloy industry and calcium carbide industry respectively. In the analysis of the business enterprise strategic environment, the writer evaluates the opportunities and threats faced by Hanjiang group brought about by the middle-route project of diverting water from the South to theNorth emphatically. Then the critical external resources of Hanjiang group are searched. Finally, the opportunities and the challenges faced by Hanjiang group are made clear.Chapter 4—The internal assessment of the strategic environment. Through examining the key internal resources, the advantages and the disadvantages faced by Hanjiang group, the writer has expounded what kind of strengths and weaknesses Hanjiang group possesses.Chapter 5—The choice and implementation of growth strategy for Hanjiang group. The author firstly analyzes the major commonly-operating businesses and the industry chain of Hanjiang group. After the analysis of the increse motive power, phases and ways of Hanjiang group, the writer has found out the growth ways and methods adopted by Hanjiang group in the past. Then the writer educes the strategy choice for Hanjiang group to realize its reincrease, viz. Hanjiang group must change its growth ways, adjust its growth structures and transfer its growth regions. Finally, the new growth strategies of Hanjiang group are confirmed and implemented: the aluminum industry implements vertical integration strategy, viz. forward integration, to develop aluminum processing industry mainly; backward integration is also implemented, therefore the industries of pre-baked anode, aluminum fluoride and alumina should be developed quickly. The carbon industry implements horizontal integration strategy to expand fleetly and form the advantage of scale. The other industries implement diversification strategies, viz. to develop hydroelectric power industry, reorganize the high energy consuming industries, develop tourism industry and make full use of the water of Danjiangkou reservoir.