Study On Development Strategy Of Central Plains Environmental Protection Co.,Ltd

CPEP (Central Plains Environmental Protection Co., Ltd.) founded in the beginning of2007, is the only one state-owned listed company in Zhengzhou City. Its main businesses are urban sewage treatment and urban central heating. In the7years since the establishment, CPEP has been expanding the scale of assets constantly. It has set up seven sewage treatment plants and three central heating plants in Henan Province. In the past years, CPEP has been developing stably depend on asset operation, and has been in the high position in the profession of Henan Province. However, facing the fierce competition in the sewage treatment industry, how can CPEP seize the macroeconomic policy opportunities to develop business development strategies is an important issue of the enterprise.From the implementing of reform and opening policy up to now, China’s economic construction has achieved great success, but in the early pursuit of economic efficiency, while industrial production also severely damaged people’s living environment. In recent years, the Chinese government introduced a series of measures to solve environmental pollution issues. From "Twelfth Five-Years Plan" to the Third Plenary Session of the18th Central Committee, government reports have highlighted concerns about environmental issues. The demand for urban sewage treatment business is improved continuously by development of the industrial economy, macroeconomic policy and the continuous urbanization process. As a listed company which run a business in sewage treatment and central heating area, CPEP should give full play to its advantages in terms of size status, investment and financing abilities, operation and management capacity, human resources and financial resources, reduce operating costs, plus R&D efforts and extend upstream and downstream industry chain, adding new profit growth point.During the development of the new era of development strategy, CPEP should always adhere to the principle of the core business competitiveness, take company brand and listed company platform as the center for diversification, and always pay attention to risk control. The fundamental of development strategies should be optimize the allocation of resources within the enterprise, in the other hand strengthen human resources establishment, and accelerate the construction of information technology to improve the efficiency of internal operations. As a listed company, CPEP should be actively involved in the capital markets which raise the proportion of direct financing, rich corporate financing resources. Under the premise of protecting the stability of sewage treatment business operations, CPEP needs to actively carry out mergers and acquisitions on the sewage treatment industry chain. At the time of investment in new sewage treatment plant, new sewage treatment unit should be established in line with the local economic level personnel payroll system to reduce operating costs and improve competitiveness force.In order to guarantee the development strategy can be carried out, the study draws up a series of policies including enterprise system, human resource system, production operations, corporate culture, and other support infrastructure to ensure strategic planning results. The study proposed two implementation directions including project investment and mergers and acquisitions. On the basis of maintaining investment in new projects, strengthen the business chain by mergers and acquisitions, in order to ensure that enterprises can quickly expand in the fierce market competition.Finally, based on the strategic program to develop a specific implementation strategy, proposed in the form of investments and mergers and acquisitions to expand the scale of mergers and acquisitions to expand firm scale, create new profit point, improve business chain, establish firm’s brand and enhance the status in the industry by the mergers and acquisition way.However, the study will provide reference to all environmental protection companies to help them to strengthen company competitiveness, and then to enhance the comprehensive strength of the entire environmental protection industry, and to contribute to China’s environmental protection work.