Study On Strategic Transformation Of Shougang Mineral Company

The supply-side structural reforms implemented in 2015 clearly defined the top five tasks with the focus on cutting overcapacity,destocking,deleveraging,reducing costs and improving weak links.Cutting overcapacity is a top priority.The supply-side structural reform marks China's economy has entered thenew normalof adjustment and transition.New requirements proposed by the new normaltoChina's metallurgical and mining enterprisesare to cut low-end production capacity and reduce manufacturing costs.Because of the single use of iron ore products,short chain,low value-added products,weak anti-risk ability wemainly rely on cost competitiveness.Compared to the domestic,the world's “Big four” iron ore businesses with huge high quality resources,large-scale investment used for construction,quickly further releasing the low-cost production capacity,have further strengthened their monopoly position,resulting in oversupply of iron ore market in the world.The main features of this period areslowdown in demand growth,low price volatility,increased environmental constraints,increased cost rigidity,increased operating pressure,highlighted deep problems and difficult enterprise development.As an important steel raw material base of Shougang Group,Shougang Mining Company has a history of more than 50 years.Ithas become a large-scale mining enterprise with strong influence in China.Its advancedlevel of mining technology and equipment and information management rank forefront among the same industries.It also made great contributions to Shougang Group and the development of China's steel industry.Throughout the development process of Shougang Mining Company,it went through difficulties and setbacks.Especially in the late 1990 s and earlytwenty-first century,ore pricewas very low and the company suffered serious losses.After decisive deepening reform,separation of the auxiliary,shunting staff and doing everything possible to get into the market,the vitality of enterprises was stimulated.Although it has gone through difficulties,the deep-rooted contradictions and problems in the operation and management system of the enterprise have not been completely solved.With China's economy entering the new normal,the contradiction of overcapacity in the iron and steel industry occurred.The price of iron ore concentrate powder is suffering “a cliff like drop”.Some deep problems have begun to appear.The development of enterprises is declining.It is high time that we should carry out the strategic transformation.This paper specifically includes seven parts.The thesis first introduces the research background of the selected topic,combs the current research status at home and abroad,and clarifies the research tools and methods.On this basis,the internal and external environment of the enterprise is deeply analyzed;Comprehensive analysis is made byusing the strategic tool SWOT matrix;Aquantitative choice of the strategyis made by using QSPM tool;Thestrategiesabout the main mineral industry,related industries and public welfare institutionsare described;Finally measures and safeguards for the strategic transformationaredrawn up.All of these are done to ensure that the corporate strategy is effective and viable.By studying the strategic transformation of Shougang Mining Company,we made a field investigation of the production and operation of the company,contacted the development status of the metallurgical and mining industry and actively explored how to promote the strategic transformation of the management system.This paper not only provides a suitable solution for the strategic transformation of Shougang Mining Company,but also provides the steel industry a reference case.