Strategic Studies On Development Of Shandong Tobacco Company

The Chinese tobacco industry is managed under the principles of unified leadership,perpendicular management and monopoly franchise.Depending on the administrative monopoly,the Chinese tobacco industry has experienced decades of vigorous development and gained a relatively strong competitive advantage.However,since 2012,although guaranteed by the law of tobacco monopoly,the circumstance of the industry changed tremendously by the external policies.The consumption pattern is also affected by various transmission mechanisms.The consumer purchasing motivation for some cigarette brands decreased.Besides,with the development of reform and opening up,it is increasing day by day of the impact of big international tobacco enterprises on the Chinese tobacco industry.China's tobacco industry is now in the background of a fully formed buyer market,an increasingly internationalized domestic market and the entry into force of 'the world framework convention on tobacco control(FCTC)'.In order to cope with the market under increasingly fierce competition,the government has guided the tobacco industry to carry out 'the separation of industry and commerce' and other reforms,in order to improve the own competitiveness of tobacco business and production enterprises.Shandong Provincial Tobacco Monopoly Bureau and China National Tobacco Corporation(Shandong company)were established in 1983 and 1982,respectively.The bureau and company worked together and were called Shandong Tobacco Monopoly Bureau(Company).In 2004,according to the unified deployment of the State Tobacco Monopoly Bureau,Shandong tobacco implemented the management system adjustment with the main content of separation of industry and commerce.After this,Shandong Tobacco Monopoly Bureau(Company)is mainly responsible for the entire province tobacco monopoly law enforcement,tobacco production and production management,and responsible for maintaining and increasing the value of state assets.For a long time under the planned economy system,the bureau(company)has a low operation ability,weak service awareness,and little known the real situation of cigarette consumers.Currently,target consumers differentiate gradually and put forward more diverse demands.Essentially as a commercial trading enterprise,the bureau(company)is facing the changes of competitive environment and market pattern,how to optimize business process according to consumers' demands and improve the business ability of enterprises in the industry has become the key on expanding the market share and achieving sustainable growth.This paper takes the Shandong Tobacco Bureau(Company)as the case.Under the background of its current development situation,combining the new situation of tobacco industry development,analyzing the internal and external environment of the enterprise,using strategic management theory and analytical tools,the development strategy and direction of tobacco commercial enterprises in the new period were systematically studied.The advantages and disadvantages of the Shandong Tobacco Bureau(Company)are clarified.The opportunities and challenges faced by the enterprise were comprehensively analyzed.The corresponding development strategy was made and the safeguard measures were put forward.These work will benefit the tobacco enterprises and companies to promote with a rapid,healthy and stable development,and is of great practical significance to the further enhancement of the enterprises' core competitiveness.