Study On The Development Strategic For Jinchang Iron-making Group Co. Ltd.

With the rapid development of the global economy, the medium and small enterprises are more and more important for China economic and social development. Promoting the development of small and medium enterprises is the important foundation for maintaining the stable and rapid economic growth and which is also a major strategic task related to the people’s livelihood and social stability in China. In recent years, the medium-sized state-owned enterprises are experiencing difficulties in production and business operation influenced by the international financial crisis. Especially for the steelmakers, the difficulties are heavy burden, lack of market demand, excess capacity, decline in benefits, losses increase, financing difficulties and some policies have not been implemented and so on.The focus of enterprise development strategy is how to solve the difficulties facing the medium enterprises. Jinchang Iron-making Group Co. Ltd. is a medium-sized state-owned enterprise combined by Dongdashan iron ore plant and Dongfanghong iron-making plant in1960’s. After many times transformation of administrative subordination, Jinchang Iron-making Group Co. Ltd. has formed a production system including mining, mineral processing, sintering, pellet, iron making, casting, lime and power generation.This paper discussed the present problems in management and the challenges in transformation of Jinchang Iron-making Group Co. Ltd. in the context of Chinese economy slowing, overcapacity in steel market and transformation is adopted by many steel companies. The resources condition, management and development strategy of the enterprise were studied with the theory of enterprise strategic management in this thesis. The transformation and development strategic objective of the company is determined in present study and which is important and useful for the development of other small and medium state-owned enterprises in China.