An Investigation Of The Diversification Strategy Optimization For China Coal Geology Group

China Coal Geology Group Co.,Ltd.,formerly known as China Coal Geological Engineering Corporation,was established in 1994 under the China National Administration of Coal Geology.After the development of more than 20 years,the company has won more than100 honors and awards,such as national civilized unit,national advanced collective of exploration industry,national model geological prospecting unit,national top ten geological prospecting achievement award.In terms of industrial layout,the company was established at the period when the slogan "big geology,big market" was put forward.The main industries involved include geological exploration,geophysical survey,resource development,technical services,supervision business,pharmaceutical industry,pile foundation engineering,new energy business development etc.,and operation of mineral right have also been involved.Also,the Australian company was established to expand the overseas markets.However,a layout planning of the industry has not been done,usually leading to diverse and complicated businesses.However,the development of the industry extending from the "great geology" is not ideal for lack of core competitiveness and relatively backward business sector.The operation modes have seriously restricted the further development of the company due to the disordered industrial layout and lack of core competitiveness.During the 13 th Five-year plan period,this problem has been recognized.The company has planned and classified various businesses with abandoning the supervision business and overseas market and forming five business segments including geological exploration and mining development,mine rescue and disaster management,people's livelihood geology and engineering construction,biological material research and development,as well as financial geology and industrial operation.However,because of the numerous historical problems such as the industrial layout,traditional drivers replaced by new ones and the reform of geological exploration industry,the growth of output value and profits slowed down in the past four years.At present,the company has decided to adopt diversified development.However,how to formulate the development path,how to be strong and optimal,as well as to make the group to achieve high-quality development remain unsolved.In this paper,the diversification strategy of geological group will be analyzed by qualitative and quantitative strategic analysis methods.The direction and safeguard measure of the diversified industry for the geological group is explored.Firstly,the basic situation,diversified development process,current operating status and internal capability of the geological group are analyzed to find out the problems about the diversification strategies as well as the advantages and disadvantages of the company.The opportunities and threats from the external environment faced by the company are thus found out through the PEST Analysis and the overall analysis of the industry environment.The comprehensive evaluation of the external and internal environment of each business section of the geological group is carried out through External Factor Evaluation Matrix and Internal Factor Evaluation Matrix.The internal and external key factors are ordered to preliminary estimate the ability of the company to cope with the problems from the internal and external environment.Complete the information input in the process of enterprise strategy formulation.Then,the method of Delphi interview is used to evaluate,assign score and weight to internal and external factors.Besides,the alternative plan of diversification strategy is acquired based on the SWOT matrix analysis.The alternative plan is evaluated and ordered based on the Quantitative Strategic Planning Matrix.Meanwhile,business combination is analyzed by BCG Matrix to find out industries refers to stars,cash cows and question industries.Finally,the optimization plan for the diversification strategy is put forward,and the development directions of each industry are proposed.Specific implementation guarantee is provided from such aspects as deepening enterprise reform,optimized management framework,strengthening talent development,strengthening innovation drive,integrating industry with finance and construction enterprise management.Therefore,the diversification strategy optimization plan can be implemented successfully,and further improve the comprehensive competitiveness of the enterprise and achieve high-quality development of the Geological Group.