Research On The Change Management Strategy During The Scale Expansion Of Chinese Steel Enterprises

From the beginning of the 21st century, the tide of the integration of global market has cleaned up each corner of Chinese economy. With the transformation of internal and external economic situatons, demand-supply relationship and competition pattern, Chinese steel industry is confronted with great challenges. On one hand, the degree of the industry concerntration ratio in China has decreased year by year. With the commissioning of domestic production line and the enhancement of productive level, the industry has come into a period of homogenization competition. On the other hand, large steel enterprises of foreign countries have entered Chinese market by various approaches such as M & A, equity participation, joint venture and etc. Meanwhile, the constant increasement of concerntration ratio of upper mining industry leads to the continuous rising of raw materials prices, which greatly influnces the material adoption security of steel enterprises. The developing history of steel industry of foreign countries shows that concerntration is an inevitable trend. The merge of Arcelor and Mittal in 2006 demonstrated the arrival of a period that the world development is dominated by super-strong and super-large enterprise groups with the trend of amalgamation, maximization and oligopoly of steel enterprises.The division of world steel market share and even the game ruls of transactions are more and more dicided by large enterprise groups. Under such a pattern, integration has become an inevtitalbe choice of Chinese steel enterprises.However, during the expansion process by M&A, recombination and construction of new plates, Chinese steel enterprises are faced with a great challenge:many of them have the experiences of managing a plant or a company while lack the practice of managing a cross-region large company. What changes should be carried out in the management mode and opereation management system with the increasement of steel production units number, the extention of business areas, the enlargement of the scale and the enhancement of sudsidiaries number? This paper conducts a research on the change management strategy of Chinese steel enterprises from the perspectives of management control mode, organization structure and process.Starting from the elements of degree of strategic diversifaction, regional distribution of mananufacture bases and etc, the paper makes an analysis on the key factors which influence the management control mode and puts forward the main basis of the management change and the suggestion of the function orientation selection of the headquater based on the cases of international companies.Secondly, the paper analyses the selection of the organization structure mode of steel enterprises and studies the issue of the subsequence of organization design from the view of management organization structure and legal structure.Thirdly, the paper analyses the improvement of various management control processes of steel enterprises and, aiming at four different targets of strategy control, risk management, sharing service and operation coordination, strudies the principles of improving different processes. Finally, based on "strategy balanced score card", the paper establishes a comprehensive evaluation model for management change performance of Chinese steel enterprises with six levels of finance, client, internal operation process, integration coordinaton effect, core competitiveness and study & improvement.