The Research Of HQPM Company’s Strategy Analysis And Option

Since the beginning of21st century, the economy of China has been developing persistently, which provides a fertile breeding ground for all industries. Paper making industry, to be the representative of China’s sunrise industry, has developed very well. But, along with continuous industry investment, paper making industry has entered a brand-new phase, which is over-capacity after high-speed development. According to the data from the State Statistic Bureau, during the ten years from2003to2012, the whole country’s paper production amount average increase rate per year is10.13%, the consumption increase rate is8.54%. Relatively, in2012the rate only increased3.22%and3.04%. During the9months of2013, the increase rate is only0.83%, especially the consumption rate decreased0.21%year-on-year basis. Until September2013, the amount of paper making production company is only2903. But it was3500at the end of2012.The bad phenomenon of paper-making industry began to appear from2012, as production capacity was extremely over exceeded, market competition became much more serious. The original comparative advantages and increase power decreased, the whole market confidence and forecast declined. The pressure and difficulty of company production and operation are enlarged, total company profit decreased. Besides, the state energy conservation and emission reduction policy required more and more strictly, and the environmental investment and cost became bigger and bigger. The task of eliminating backward production capacity has been assigned to all companies. The whole industry now stays in the process of economic structure optimize, transformation and upgrading, seeking a new market balancing point, it’s the period that requires all the company must change the strategy from quantity oriented to quality and profit oriented. It’s the world macro-economy depth adjustment phase. It seemed very hard to be recovered like before, and our country is the same. The good news is, along with the process of modern industrialization, informatization, urbanization, and agricultural development, the domestic demand should be going to rise. It certainly will bring the whole paper making industry the brand new opportunity and challenge.To be one of the wholly-owned subsidiaries of HQ group, an international diversified development big group, HQPM Company has accumulated more than10years paper making industry experience. It has a certain enough industry comparative advantage. Especially after2012the new production line was into operation, the total production capacity trebly increased. The production and other fundamental management level improved to a newly high level. At this moment, although HQPM company could still keep the oligarch position of the coated-paper making industry in Sichuan province, it also has to face the total market structure contradiction environment. And limited by the factors of internal management level, raw material price up, which gives a big challenge to HQPM company. For stabilizing the advanced industry status, and getting rid of company loss, gaining the profit higher than average level, that is the main task for the top leaders of this company.The author of this thesis mainly adopts the theories learned during MBA study process, combined with company and coated-paper making industry current situation and development trend, aiming to explore company’s strategy analysis and option, finally providing a certain reference for the top leaders and other people in the same industry.The thesis is divided into six parts. The first chapter mainly describes the background of the whole research, and the research object, purpose, significance. Meanwhile, it provides the relative methodology and framework. The second chapter elaborates and quotes a series of theories of strategy management from overseas countries and domestic area. The third chapter focuses on analyzing of the basic situation and relative resources, and internal management level, using IFE (internal evaluation matrix). The fourth chapter mainly aimed at systematically analyzing the external environment, adopting PEST methodology to locate the industry environment and development trend, finally using the EFF (external evaluation matrix) to prove the level of utilizing the external opportunity and avoiding from outside threats. The fifth chapter proposes the company’s perspective view and strategy target, and analyzes the internal advantage and disadvantage, finally matching the suitable company strategy, do the right strategy option, choosing a right way of company’s development. The sixth chapter is doing the special focus on development strategy of the company’s every function segment, proposing the wholly strategy suggestion for the company to keep the industry comparative advantages.The research of this thesis concludes that the short-term low wave of paper making industry can not say it’s the death end of this industry. It’s just the necessary process to eliminate the uncompetitive companies. Through the market economy self-alternated and the state macro industry development policy’s implementation, the paper making industry should move towards the new balance point. As the sunrise green cyclic regeneration industry, paper making is definitely the key ball for the country. And as the main development area, the west of china has a larger space, the competition environment is better than the east region. For HQPM company, it could see the tomorrow’s sun if survived at this special period. The company should utilize its internal advantages and external opportunities, avoiding from the market threats, optimizing the leak point and disadvantages, and improving the total operation and company profit level. The prospect of HQPM is good side, it requires optimizing every kinds of material composition, every function management level, to make safely live in this dark moment. So the future success of HQPM Company is absolutely possible.