Discussion On The Development Strategy Of Jilin Ferroalloy Co., Ltd. After It Reorganized By Sinosteel

Sinosteel Jilin Ferroalloy Co., Ltd. (hereinafter referred to as the Company) is a state-holding enterprise transformed from an old SOE. During the prime time, China's iron and steel industry rapid development pulls a strong demand on ferroalloys. Meanwhile, with high product quality, that the company's technology, equipment installation dominating the industry can't be undervalued. All these factors promote the revenue and the enterprise size increasing annually. But after reorganization, due to the changing operation environment and weak management, the company appears many problems on business administration, such as sales drop, brain drain and loss. The company entangles in a mess.The fundamental question of the phenomena is lacking of strategy guidance. So it's necessary to analyze business environment, its SWOT and work out appropriate development strategy. Aims at providing the reference of the company's "twelfth-five strategy" for the decision-maker, the paper discusses the confronting problems on the strategic level.The company mainly offers ferroalloys to iron and steel makers. But the industry belongs to a high consumption and resource interdependency industry. National macro-environment directly influences the industry development, especially the country policies and economic environment. The paper analyses China's policies on tariff, industry admission, limitation on electric price, construction adjustment as well as home and abroad economic environment in detail. It not only points out potential and sustainable factors which affect the operation greatly but also makes a scientific forecast on its tendency.Industry structure determines competition and profitability. The paper analyses the industry from enterprises competition, potential new rivals, potential surrogates, bargaining power from both suppliers and buyers with Porter's "Five-Force Model". Meanwhile, with the competitive situation matrix analysis on competitors that have the same competition ability with Jilin Ferroalloys Company, through the interview with intra-industry senior specialists in ferroalloy, we determined the important factor and weight to take an objective and scientific analysis of its comprehensive competitive capability, from the analysis results, Sinosteel Jilin Ferroalloys Company is on a leading position, but it is easy to see that the gap of whole competitive ability of Jilin Ferroalloys Company is close to Minmetals Ferroalloys, ordos, Sinosteel Guangxi Ferroalloys Company, the industry leading position of Sinosteel Jilin Ferroalloys Company will be threatened.With 57 years development, the company takes shape a solid resource base under the special circumstances of planned economy. On the internal resource analysis, the paper focuses on crucial determinants on the company's development, for example, marketing ability, R&D ability, production installation ability and financial ability of the firm ability as well as brand resources, technical resources, human resources and material resources of the enterprise resources.Though the analysis on external strategic environment and internal resources, the paper clarifies the company's SWOT. By means of qualitative and quantitative analysis, it reach the following conclusions. First, the company takes advantage on the utilization of external environment better than other companies. Second, due to its advantageous internal environment, its strategy locates on growth strategy which is a strategy develops to a higher level from the current stage. As development is its core, it will lead the enterprise develop advanced product and open new market with new product and management mode continually so as to enlarge production and marketing size, raise the status of competition, and enhance competition strength. Reference to the SWOT matrix analysis of Jilin Ferroalloys Company, this paper has worked out three alternative strategy programs, for more objective evaluation of alternative strategy program to determine the best program; this paper uses the quantitative strategy planning matrix (QSPM), according to the pre-matrix analysis of EFE and IFE matrix, give the weight for each external and internal factor based on the method of expert interview, finally it is concluded the attractive score, it is thus clear that the key point of affecting the strategic value of enterprise program is the enterprise's technology research and development ability and the ability to get resources, relatively program one is the most competitive and it should be an important content of the strategy.According to the results of analysis, we determine the overall strategic positioning, guiding ideology, business orientation and strategic objective of Sinosteel Jilin Ferroalloys and formulate the research and development, market, talent and production strategies, which are adaptable to development for Jilin Ferroalloys, through the implementation of these functional strategies to ensure the smooth enforcement of the overall strategies. The implementation of enterprise strategy is his continuation, the unimplemented strategy is something conceptual, and the enforcement of strategy is the transformation from concept to action of enterprise strategy. The smooth implementation of strategies need the optimal configuration of organizational resources, necessary structural adjustment, construction of enterprise system and culture, the aim is to ensure the smooth enforcement of enterprise stratey, remove obstacles for the development of enterprise.This thesis study, deep analysis for the internal and external environment is faced with Sinosteel Jilin Ferroalloys Company, it provides the basis and direction for the future development of enterprise, meanwhile, it provides the reference and thinking for ferroalloy enterprise strategy choice in the current economic conditions.