Research On The Strategy Of Diversified Of Xinwen Mining Group

The strategy of diversified development is the issue concerned by large enterprises group at home and abroad. In the academia, the research of the strategy of diversified development is continued. There are exterior reasons and also interior factors for an enterprise to adopt the diversified development strategy. Xinwen Mining Group, which has over a hundred year's of mining history, is a super-sized state owned enterprise originated from its coal mining industry. As the coal resource is non-renewable, with the reduction of the workable resources, the enterprise is definitely faced with the new pressure of restructuring itself. In the recent years, the enterprise has been probing the ways of increasing its economic benefit and realizing the long term existence, put forward the guideline of taking the coal production as the main industry and developing a diversified economy. Particularly since 2005, the output value of non-coal industry has exceeded that of coal industry, which symbolizes that the diversified development of the enterprise has entered a new stage. Is this kind of diversified development inevitable, and is it feasible? How should we layout its next-step development? These have become the issues that need to be solved urgently by the enterprise. This article gives the research on the mentioned issues in theory and in practice, which provides the large coal producing enterprises in China with the theoretic basis on how to establish a strategy of development that is suitable to the characteristics of itself and the requirement of the environment, and enforce it effectively, to realize the long term stable development of the enterprise. It is of great realistic significance.On the one hand, on the basis of theoretical research, this article gives analysis on the interior resource and ability of Xinwen Mining Group and its situation of the diversified development accumulated in the past years by using such methods as statistical data analysis, qualitative and quantitative analysis and summary and conclusion, and proves the necessity and feasibility of the diversified development, through the research of the advantageous exterior environment where the enterprise lives and the advantageous interior condition. On the basis of the above, it shows that Xinwen Mining Group should implement the strategic thinking of taking coal mining as the main industries and meanwhile developing diversified industries, and points out the orientation of the next-step development of the industries in the enterprise through research and analysis by using Boston matrix, say, which kind of industries should be prioritized to develop, and which should be stopped resolutely. This article gives a further definition of the guide thinking, principle of selection, thinking of development, development target of the diversified development of the enterprise, and gives the investment estimate and benefit prediction, to help the enterprise work out suitable strategy of diversified development.On the other hand, in order to ensure the effective execution of the strategy, the implementation of the strategy of diversification should be focused on the following three points. Firstly, the enterprise culture should be renovated. In the construction of the enterprise culture, the ideal value of the enterprise's operation with "progress with the development of the times, innovation and pioneering" as the mainstay should be put into, to create the enterprise culture that is suitable to the current strategy of diversified development of the enterprise. Secondly, the organizational structure should be optimized, by trying to change the previous straight line formed function to the improved M formed structure that is adaptable to the development of the enterprise, thus ensuring the interactivity of the organizational structure and the enterprise strategy, and promoting mutual development and upgrading. Thirdly, the strategy of vitalizing the enterprise with science and technology should be implemented. The construction of the system of innovation through science and technology should be strengthened, the system of innovation through science and technology should be improved, and the newly developed project should be supported by certain science and technology. Fourthly, the management and development of human resources should be strengthened. The scientific approach should be used to do a good job in selection, education and employment of the stuff, to keep them working in the position, and improve the overall quality of the employees. Fifthly, the management of the financial affairs should be strengthened, and the financing work should be done well and the contribution of capital should be ensured, to supply strong support to the development of the enterprise.