Huayuan Company Change Strategy

With the further development of the power industry reform in China, the system and structure of this industry has been undergoing great changes. By the end of December 2002, the monopolization-intensive power industry has been divided into two parts according to the "Electric Power System Reform"scheme enacted by the State Council. Power generation has been separate with power transmission and distribution part. This has broken the past situation that these two parts are normally integrated into one by provincial unit. As an experienced company that engaging in nation wide coordination of coal and fuel supply for power plants, Huayuan Corporation is facing great challenge that hasn't ever encountered. How to keep the leading position in power industry? How to sustain competitive advantage in such high-competitive environment and how to synchronize the management and development? It is very necessary and urgent to solve the above problems. With this background, this thesis argues what transformation measures Huayuan Corporation should take under such new conditions. Firstly, It gives a brief introduction of Huayuan Corporation's history and special position in the industry. Based on the complete analysis of external and internal conditions of Huayuan, it illustrates the challenges and opportunities the company is facing. Suggestions are given with regard to company's stakeholders and obstacles that hinder the development of the company are discussed. Finally this thesis provides solutions to problems that may occur during the strategy implementation process. The author wishes to form a systematical thinking through this research, trying to provide help and reference to Huayuan Corporation's development of core competence.