Study On The Effect Of Merger And Reorganization Of Bao Wu Group Based On The Supply Side Reform

As a typical industry in traditional industry,iron and steel industry gradually reveals the contradiction with the development of the times.With the improvement of the consumption level of the residents in China,the direction of purchasing power has changed,and the purchase of high-quality products has become the mainstream of the consumption level,which means that the direction of the traditional heavy industry is destined to change.The theory of supply side reform provides transformation and upgrading for the future of steel industry,and brings new momentum to the development of iron and steel industry.As the first iron and steel industry to respond to supply side reform,they need to eliminate backward production capacity,reduce costs and improve product quality.Under this background,merger and reorganization has become an important way to integrate resources and break the difficulties of management.It has become an important way to improve the industrial concentration and improve the competitiveness of products.Driven by multiple advantages,the prelude of the new annexation and reorganization mode of iron and steel industry is officially opened.First of all,starting with the theoretical part,this paper focuses on the related concepts about merger and reorganization and the supply side reform,and analyzes the mutual influence between the two.At the same time,the basic situation of Baosteel Wugang,the first iron and steel enterprise,which is the first to be annexed and reorganized after the supply side reform,is introduced,and from the perspective of the supply side reform,the motivation of Baosteel's WISCO is analyzed in detail,including two parts of internal and external motivation.The internal motivation includes improving the economic benefit of the enterprise,reducing the cost and cost,and improving the management efficiency.The external motivation mainly includes the promotion of the industrial concentration and the drive of the national policy.Then,from the perspective of supply side,this paper analyzes the effect of Bao Wu group before and after merger and reorganization.We also use index smoothing method and comparative analysis method to calculate the financial,cost and product related indicators before and after restructuring.It is found that the income of the merged companies has increased substantially,and the structure of assets and liabilities is basically stable.But at the same time,it is also found that enterprises still have room for improvement in resource allocation and product competitiveness.In addition,this paper also uses the DEA data envelopment analysis method to calculate and analyze the efficiency value of Bao Wu group after merger and reorganization,and finds that the group still has the problem of low productivity utilization.Finally,aiming at the problems arising from the annexation and reorganization,the paper puts forward the countermeasures.It mainly includes capacity production,cost reduction and excellent products,providing new annotations for the supply side reform of Bao Wu group.