The Research Of Strategic Transformation For Sichuan Institute Of Coal Field Geology And Exploration

Sichuan Institute of Coal Field Geology and Exploration, established in 1996, is subordinate to Sichuan Bureau of Coal Geology. It is mainly engaged in coal field geology, hydrogeology, engineering geology, environment geology, remote sensing geology exploration, disasters geology, coal quality testing, research and exploitation of coalbed gas, safety evaluation and consultation service, etc. In primary stage, it undertook project of coal prospecting in Sichuan issued by China National Administration of Coal Geology in the name of Sichuan Bureau of Coal Geology, and exercised internal management functions. To accommodate the changes of market’s demand, it had made adjustments on enterprises orientation in July 1998. The new secondary economic entity consisted of 18 engineers which were from geological exploration department, technology department and geological measuring team of Sichuan Bureau of Coal Geology. The new economic entity was an independent institution, and exercised enterprises operation-"self management, self financing, self discipline and rolling development"At present, the environment of enterprises is changing complexly, dynamically and unpredictably, and the new situation of which is different from the traditional environment of competition that had formed. Strategic transformation become increasingly important and realistic for domestic and international enterprises. If the enterprises of geology exploration can not grasp the reform opportunity and innovate the structure, machinery and development method, it would recommit the same error. In such a situation, more and more enterprises had to choose the transformation as the way to realize renaissance or sustainable development. So this research had distinct times brand and offered some reference to the enterprises of the geological industry. Meanwhile, business transformation belongs to reform management, strategic management and growth management. Strategic transformation is not only the tough challenge faced by many enterprises, but also the challenge and opportunity for enriching the reform theory, theory of strategic transformation management and theory of enterprises growth. The essential problem faced by enterprises, with the purpose of adaption and making good use of the chance offered by market environment to realize strategic transformation and ensure the unique competitive advantage, is how to adjust the strategy mission and target of enterprises according to the changing environment. Nowadays, Chinese economy is sliding into a state of inflection point of strategic transformation, the speed and mode transformation of economy development effect developmental environment deeply for geological enterprises. The new trend made the appearance of reversed transmission of pressure for easing monetary condition, which made the strategic transformation is in the irreversible tendency. The development of Sichuan Institute of Coal Field Geology and Exploration can be divided into four stages since the foundation, the development and strategy in the first three phases offers the experience and reasoning for strategic transformation. In the first half of 2011, central government and the State Council made comprehensive arrangement for institution reform. The reform already entered phase of final crucial stage. Recently, the coal industry is in depressing state. What’s more, the related markets of geological disaster control began to pick up because of the influence of earthquake of "5.12" and "4.20", and the new energy such as shale gas and coalbed gas is also widely valued. The Sichuan Institute of Coal Field Geology and Exploration obtained the unremarkable results in the past in the field of construction and investment, therefore the whole strategy is gradually transit to diversification. Meanwhile, the Sichuan Institute of Coal Field Geology and Exploration pay more attention on the quality of development but not the quantity, so this is the best time to carry out strategy transformation. The development strategy should also be altered with the change of environment.The author consulted a large number of theory and information which can be used for reference in enterprises growth and transformation, summed up and absorbed the newest research findings and practical experience at home and abroad, and got prepared for theoretical analysis and investigation..Then the author exemplified the Sichuan Institute of Coal Field Geology and Exploration, analyzed the reason impacting the growth and strategic transformation from inside and outside, and researched and deciphered deeply. The paper contains six parts:the first part is introduction which mainly introduce the research background, meaning, research method; the second part is the summary for the basic theory and views of the strategic transformation, as well as the theory at home and abroad, such as three levels of business theory, the second curve theory, the strategic inflection point theory. Those content offers the base of theory, method and reference for breakthrough; The third part is the new situation and challenge faced by companies. The author mainly cards the challenges which are the necessary background of strategic transformation:The forth part is SWOT analysis for Sichuan Institute of Coal Field Geology and Exploration which is put forward to offer decision-making basis; The fifth part is detailed description of though, aim and methods; The sixth part is the conclusion.main refer to the innovation and shortcoming of the paper.According to using system study method, comparative study method and SWOT analytic tools, the paper combined the theory and practice, dissected generally the current environment, and proposed that the strategic transformation of Sichuan Institute of Coal Field Geology and Exploration should be carried out on the basis of three aspects:the first one is that the enterprises should pay attention to accumulation of quality instead of quantity, and finish the transformation. The following one is that the enterprises should constantly develop the business around geological industry, change the development way Of irrelated diversification to that of concentric diversification which manage exploration of mineral resources as major work. The final one is that the enterprises should finish the transformation of entrepreneurialism. So in the next 3-5 years, the main point of development for Sichuan Institute of Coal Field Geology and Exploration is strengthening the quality of economic development, increasing economic returns, and expanding new business field and trying to obtain valuable mineral. The development strategy should be changed into sustainable development method with high quality. The paper put forward that it would be better to adopt diversification development for Sichuan Institute of Coal Field Geology and Exploration. That is to say, the enterprises should see the mining industry as main body, geological exploration and construction (including disaster geological survey and control) as main industry, and the related industry (safety evaluation for coal mine, coal quality testing, design for coal mine, geophysical prospecting and so on) extend unceasingly. The enterprises should improve the advantaged related industry to be emerging industry, accelerate development of emerging related industry (technology service for gas, supervision for mine construction, water disaster prediction and forecast for coal mine), and try to expand the industry field of the metal mineral and gas mineral prospecting (main containing a several kinds of unconventionality natural gas, such as coalbed gas and shale gas). The enterprises should gain benefit and accumulate the fond by making innovation, then lay the economic foundation for the rapid development.This article’s research significance is related to the innovation for structure and machinery which will be an important reference to the public institution’s reform. For the reason mentioned above, the research for strategic transformation is of high value. It can enrich and develop the theory of enterprises’ reform management, and offer basis information for the development of strategic management theory, especially for strategic transformation of geology enterprises.