| In1992, with approval of commission for structural reforms of Chengdu, Chengdu Gaoxin Developing co. ltd.(CGDC) was established by administrative commission of Gaoxin district and other3parties, raising funds from targeted sources. It was listed in Shenzhen stock market in1996. But because of its weak correlative diversified development strategy resulting from historical reason, there has been many problems such as Industrial decentralization, less prominent in primary business, heavy debt burden and high financial risk. Although Tradable Share Reform was successful in2006, but such problems still exist.Attention is concentrated on the development of CGDC in this article. To make a clear view of strategic positioning of CGDC, we analyzed industrial environment and the state of operation of its subsidiaries and draw lessons from the experience of listed company of its kind. The strategic positioning of CGDC is to be a company that has2leading pursuit:futures financial services and establishment and operations of technology industrial park. That will make the company be in continuous operation and have stable profitability in a fully-competitive market environment.Under the direction of the strategic positioning, CGDC should designedly put strategic reform into action. First it should make structural readjustment and integrate its subsidiaries. According to development direction, its strategy dealing with each industry differs:reserve, maintain, or quit. Second, it should concentrate superiority in force, be supportive to real estate and financial service subsidiaries and to make binary business line come true at an early date. Third, it should utilize the platform of listed company to make additional stock issue tailed for strong stock holder and replace its assets, raising enough funds to increase capital in real estate and financial service subsidiaries. In this way CGDC should rebuild core-competitiveness of binary business line and solve historical problems completely. In2or3years, it will finish its strategic transformation and have sustainable development.This article cites internal data from CGDC as study material.This article will help strategic transformation of CGDC, and will be worthwhile in dealing strategic transformation of other company in the future. |
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