Zhongyuan Dahua Group Development Strategy

Zhong Yuan Da Hua Group Co. Ltd of Henan Province is a single-funded state-owned enterprise, the biggest fertilizer production base of Henan Province and the biggest melamine production base in China, one of the 30 large scale fertilizer production bases of China. Relying on the natural gas as raw material, the product structure of the company has changed from single fertilizer to various chemical products by expanding its product chain. However, at the end of the transit period of the China's entrance into WTO, the global competition increased intensively, the requirements for safety and environmental protection were more strictly, which brought out the further increment of production cost. Due to the drastic change of outside circumstance, that is the short supply of energy resource in China and the raw material of the company, the company is forced to take a realistic view of the previous development scheme and make a new development program under the threats of existence and the bottleneck of development.By utilizing the strategic management theory of enterprises and its analysis tool, herein the outward circumstance such as the macro environment, industry environment and natural resource supply situation faced by the company as well as the internal resource condition were analyzed. The essay indicates that Zhong Yuan Da Hua Group shall fully utilize the information provided in the "11th-five" program of Henan Province and China, fully utilize the favorable policy on the central region development of the state and the rich coal resource in Henan Province to further consolidate its current position as fertilizer and melamine production base, sticking to market-oriented, to expand raw material lines by developing and utilizing substitute materials, alternating from gas-based to gas-and-coal-based enterprise to avert the existence danger and overcome the development bottleneck, making full use of the advantages of scale economy of large-sized plants to realize optimized products and industry regulation. Based on this analysis, the essay pointed out that Zhong Yuan Da Hua Group Co. Ltd of Henan shall take "stabilize natural gas chemical industry, speed up coal chemical industry, develop fine chemical industry" as its developing...