Development Strategy Research Of SM Coal Group

The coal industry in china is surfering a deeply change. Mergence and Acquisition sweeped the coal industry widely:The companies in the East incorporated the companies in the West, the larger company merged the smaller,the province government leaded the local companies combination. Followed with these change,the caol industry is going into big ones epoch instead of the free competetion between ten thousands of small ones.The SM corporation is a large group major in coal industry. As a result of many years of mergence and acquisition, SM corporation,from a middle scale company, has growed up as a large corporation,with a coal output of one hundred million tons per year.SM has invoved into more than six scopes,such as coke, fertilizer, logistics, power plant and so on.Since2008, the Chinese State leaders has beening tried to turn the economic development model,and pushed the structure adjustion of energy consumption. The industries that SM has connected in would face a threat from industry structure transformation and industry policy change.These external factors pushed SM to turnaround it’s strategy and renew it’s industry position.This dissert research about the strategy formulation of MS.In the dissert,I screened the external factors that caused SM to take a strategy change,analysed the internal resources and it’s value chain,finally come to a relative diversification strategy depending on recycling economic model.Followed by an exhaustive analysis,the dissert put out it’s viewpoint that SM should practise a recycling economic model,keep the coal industry as it’s main scope,develop both in coal exploitation and coal chemicals.SM should extend the horizontal value chain that base on the coal industry,and develop the vertical value chain that focus on the Coal fine chemicals,turn SM to a green energy supplier with good performance in energy saving and environment protection.About strategy implementation,the dissert emphasize on the corporation governance systme reform and constitution of technology innovation System. SM must enhance the headquarters’s ability of strategy control and optimize the internal coordination,furtherly operate effective authorization and supervision.The dessert finally discussed the measures for strategy implementation that consist of enterprise culture building, human resource system improvement,production safeguard,resources support, etc.The most important measures among them are authorization system and technology research management.Key Words:Development Strategy;Coal Corporation;Recycling Economics;diversification...