Research On Strategic Model Of Enterprise Comprehensive Strength And Its Growth Rate

Strategic management, as a popular branch of corporate management disciplines inrecent years, scholars have been eager study. Definition of corporate strategy has always beencontroversial, both Chinese and foreign ancient and modern scholars presented their researchresults, and the methods of strategy development is emerging, such as the Boston matrix,SWOT analysis, McKinsey7-S model, the nine squares management theory and so on, thepaper will also put forward a new strategy development based on the classical models,namely, integrated business model strength and growth strategy.In the enterprise overall strength and growth strategy model, the horizontal axis is theenterprise’s comprehensive strength. On the basis of comprehensive, systematic and scientificindex system established principles, but also with reference to a number of articles of expertsworks, Title of Thesis and core journals, the article established a comprehensive strengthevaluation contains three layers of10categories of37indicators of business system, andthen use the software spss to factor analysis, the scores of the comprehensive strength of eachenterprise; vertical axis is the enterprise’s comprehensive strength of growth, the overall scoreat the end of the year the study began subtract, divide (the number of years-1) this value,the result is that the growth rate of the overall strength of the enterprise, which is the verticalaxis of the model.The plane is divided into four regions by the model, the first area businesses located inthe upper right corner of, namely the star enterprise, with strong comprehensive strength andhigher overall strength of the growth, such enterprises should adopt strategies for investmentand development, competitive strategy should be selected differentiation strategy, whichallows enterprises to provide services and products more diverse, there are differences,companies are more innovative capabilities. In the second area of the enterprise, thatenterprise is named to selected, the overall strength is not strong, but the overall strength ofthe higher growth rates, such enterprises should be taken to select type of strategy, namely topromising companies to give investment gradually to develop into stars category, while thosewithout promising to give contraction policy. The third area enterprise is named to skinnydogs, the overall strength and the growth rate both very low, such enterprises should takepartial liquidation, surrender, partial rectification strategy. The fourth area enterprise isnamed to Taurus, comprehensive strength is high, but the overall strength of the lower growthrate, the enterprise should be taken to maintain strategy in the general, and to expand theirbusiness in the appropriate time. No matter what kind of strategic options, the ultimate goalmust be to continue to enhance the competitiveness of enterprises, and to make the rightstrategic decisions, provide the basis for decision-makers. Finally, the paper use the data of15power enterprises in the nearly seven years for theresearch objects, through the establishment of the overall strength and growth strategicbusiness model, and then draw the appropriate strategic decision diagram, and makestrategies for each power companies, provide theoretical support for decision-makers to makethe right strategic decisions.