Lanzhou Veolia Business Strategy Research

The original lanzhou city tap water company as an important municipal public utility units, once played an important role for the development of lanzhou city. However the management level is not high, management efficiency is low, the lack of the consciousness of the public service, factors such as the source of the lack of funds hindered the pace of its economic development, so that it is lagged behind the development of market economy.Compared with the international advanced water companies lack of efficiency and competitiveness, just rely on the government's credit and administrative power, apparently, is not enough to solve the problem of capital bottlenecks. Lanzhou city, therefore, the government decided to change of state control under the premise of equity position by forms of enterprise planning stake in the transfer of lanzhou water group co., LTD. In early 2007,veolia environmental group acquired at the cost of 1.71 billion yuan in lanzhou water group co., LTD. 45% stake, while for lanzhou city tap water for 30 years. Joint venture enterprise in the external environment, internal management environment and the whole industry environment will encounter a series of problems, the company in the process of formulation and implementation of operational strategy also will inevitably encounter some challenges,This is seen as a process of forming a strategic role in subjective concept, advocated the formation to be deliberate strategy, the coherent, clear and concise strategy to facilitate the implementation and testing; after full analysis of the enterprise's internal environment and the external environment briefly describes the joint venture after the Lanzhou Veolia's strategic objectives and implementation strategies. Its conclusions are as follows:First, advocates of privatization of public utilities, the introduction of a lot of money,breaking the technical barriers to the upstream supply companies to provide quality services to downstream users. At this stage, the shortage of public sector funds, single source, but it must fully introducing foreign capital, private capital, to diversify funding sources.Second, the joint venture after the two sides to give full play the advantages of each other, the introduction of advanced technology and management experience skills, enhance their core competitiveness, the former state-owned enterprises solve the problem of backward technology and equipment.Third, the water company after the joint venture to expand the scale and the operation of a modern and professional management, to break the limitations of the detention area,breaking the long-term monopoly, to enhance the quality, quantity and efficiency of water supply and increase of state-owned assets, improve market-oriented level, accelerate the process of reform of state-owned enterprises.Fourth, in the process of privatization of public utilities, to establish a modern enterprise system, effective control of risk prevention, reasonable given the respective shares of the franchise.