Strategic Evaluation And Optimization Of Diversified Business Portfolio Of Kailuan Group

Kailuan(Group)Limited Liability Corporation is a large state-owned coal enterprise in China,which was founded in 1878 and has a history of 140 years.At present,Kailuan Group grew into a large enterprise group which combines production of coal,coal chemical industry,modern logistics,financial services,cultural tourism,equipment manufacturing,thermal power,construction and other industries simultaneously.By the end of 2017,Kailuan Group owns the total assets of 79.9 billion yuan and nearly 70,000 employees.In recent years,the diversified business operations strategic of China’s coal enterprises mostly rely on the coal business as the support and the regualated indusries,such as coal chemical industries,thermal power-based industries,are developed.Under the serious coal market,the effect of diversification strategy of coal enterprises,the main problems of business development and the plans of thefollowing strategies become urgent problems for coal enterprises.In this article,Kailuan Group diversified portfolio strategic assessment and optimization are divided into six parts to be evaluated and optimized.First of all,the significance of the research background is expatiated,and then the research framework and research methods are put forward,the research status of diversification strategy and Boston matrix theory are elaborated and analyzed both at home and abroad.Secondly,the theoretical knowledge of diversification strategy,Boston matrix and product life-cycle theory are explained.Especially,the advantages and disadvantages,limitations,classification,application development of Boston matrix as well as the characteristics of the product life-cycle theory in each period are introduced in detail.Thirdly,by analysizing the general situation of the company,internal and external environment,and the implementation of diversified strategic advantages,the status quo of the diversified business implementation of Kailuan Group are elaborated.Fourthly,by analysizing the three indexes in Kailuan Group’s business : sales growth rate,the changes of market share as well as relative market share,follwing the relevant theories of Boston Matrix,Kailuan Group’s main products are classified and the business portfolio assessment are diversified,the diversified business problems of Kailuan Group are put forward,such as the businesses supporting the main body are too small,the businesses of Dogs are slightly more,the overall sales income of Dogs is too high,the proportion of Cash cow is relatively low and so on.Fifthly,combined with product life-cycle theory and Boston matrix analysis,the diversified business portfolio of Kailuan Group comprehensively are analyzed,and based on actual business operation,product development prospect and current business condition,11 business proposals are put forward,the safeguard measures are put forward from two aspects----management measures and personnl supporting measueres.Finally,the diversified business of Kailuan Group are assessed and summarized,the overall development of diversified strategic proposals are proposed,and Kailuan Group’s future diversification strategyare outlooked.In this paper,Boston matrix,the product life-cycle theory,and diversification strategy related theory are applied to ananlysiz the most characteristic of large state-owned coal enterprises resources,Kailuan Group.From two practical activities: sales growth and market share data.Combining with the analyses of the actual conditions of the product business operating conditions,industry market situation,future development trend,enterprise actual situation,countermeasures for optimizing are put forwad,which guide the development of diversified business portfolio strategy implementation for Kailuan Group.Targeted at reference for the developmen of the state-owned large-scale coal enterprise.