| With the rapid development of urbanization and Internet technology in recent years,the city construction has been improving rapidly.In the future for a long period of time,the domestic city construction market will maintain a good developing trend.A Group is a 100%state-owned enterprise which is funded by the local municipal government since September 2006.As one of the city’s key municipal enterprises,A Group plays the role of the constructor for the development of the city’s public environment and the new areas of the city over years.Since founding,A Group has achieved good performance in the city construction,asset management,investment and financing,business integration and corporate management.However,with the acceleration of the domestic urbanization process and the changes of the internal and external operating environment of the company,the company is also facing some problems and difficulties.Because of undertaking the government construction projects for many years,the company’s capital investment and financing pressure continues to increase.In order to find a better solution to the problem of insufficient funds for city construction,A Group needs to set up business-level strategy to operate the Group’s assets.It is essential for the company to change the current operational status,to make accurate business positioning and integration so as to generate a stable source of profit growth.How to develop effective management strategy according to the company’s own resource is a major and urgent problem to be solved.As long as the company develop a suitable strategy and sharpen its edge,the company will survive in the fierce market competition and gradually to be the leader of the urban construction industry in the future.City Construction Group A(hereinafter called "A Company")has meet many problems in the process of its development.Currently,the main dilemma of A Company is that the over-dependence on the government leads to its weakness of marketing which means its business expansion does not depend on the market but depends on the administrative resources.The market orientation is not clear,and the business portfolio is not in line with A Company’s current development needs.The reasons are that most business of A Company are gained from government relations.All these businesses are arranged according to the needs of the government and are scattered and not persistent.A company is not clear in its business orientation and fails to carry out its business to meet the market needs.A company also faces the heavy burden on capital and the increasing pressure on investment and financing due to many years of undertaking the construction tasks of government projects.According to the characteristics of the A city construction company,the author uses the theory and method of strategic management to analyze its business-level development strategy.By the analysis of the external macro environment,the changing industry environment and the internal company resources,the paper suggests that A Group should integrate the company’s business,establish the modern enterprise system,improve asset management,and adopt business-level strategy and diversification strategy to achieve sustainable development。It is also necessary for A Group to make a forward-looking strategic planning and business positioning in order to achieve leapfrog business development in the future.By SWOT analysis,A Group’s future business orientation is:to develop key businesses such as the city construction by financing,real estate development and management business,to expand appropriate relevant sub-business and to actively cultivate strategic business like environmental governance and recycling for the Group’s sustainable development. |
