The Research On Development Strategy Of Shanghai Foreign Service Limited Company

With the process of industry structure transformation and the launchof sustained development strategy, to change China from a heavypopulation country into a strong human resources country has been set asone of state’s strategic targets by central government. In March2007,State Department issued “Instructions on Accelerating Service Industry”,within which “develop human resources service industry and support agroup of human resources service companies with internationalcompetitiveness” is clearly put forward.Making best of opportunities from beneficial macro environment,Shanghai Foreign Service Company has achieved great progress in pastyears to confirm its leading role in domestic human resources industry.However, all of a sudden, the situation witness a sharp downward trend,the company is about to undergo a harsh business winter.Financial blizzard of2008made a heavy impact on real economyin a short time, enterprises cut down human resource costsubstantially, resulting in shrinking market demand. With domestic service market was opened to foreign capital byWTO promise, top10multinational human resource servicecompanies leaped into domestic market, relying on their capitaland technologic advantage, imposing great challenge to domesticcompanies.In2008, a number of new laws®ulations were issued such as“Labor Contract Law”, forcing talent dispatch industry to changeits business model. Companies will face operation cost increaseand risks caused by business model change.This paper aims to set up development strategy in the next3-5years for the company through external and internal environmentanalysis, helping company enhance efficiency of decision-making, seekopportunities from difficulty to change disadvantage to advantage andprepare for further development.The paper firstly analyzes company’s external environment withPEST Model, Five-Force Model，cooperation status and EFE Matrix.Secondly, it analyzes company’s internal environment with EnterpriseLife Circle Table, Value Chain Model, BCG Matrix and IFE Matrix.Thirdly, it assesses and designs company’s development strategy withSWOT Matrix, QSPM, Enterprise Strategic Resources Diagram andValue Curve. At last, it puts forward Reinforcing Strategy andDifferential Concentration Competition strategy for the company, with insisting on human resources outsourcing service as main business,.To ensure the smooth implementation of the above strategy, basedon company’s real situation, it applies Balanced Scorecard to work outstrategy guarantee measures consisting of financial, customer, internalbusiness process and learning&growth methods.This paper uses real example as research subject, giving usefuladvice and reference to domestic human resources service companies,helping them survive and develop against harsh macro environment andchallenge from multinational companies by positioning themselvesproperly and establishing differential advantage.