IH Company Strategy Research

On November 23 th,2016,the State Council of PRC issued the "Notice on the"13th Five-Year Plan for Poverty Alleviation",and formally proposed the concept of"industrial poverty alleviation".According to the instructions of the central government,governments at all levels across the country have introduced a variety of preferential policies to attract investment from enterprises,encourage home entrepreneurship and self-employment,and have established a large number of poverty alleviation enterprises with strong social attributes.Founded in 2017,IH company mainly focus on electronic components manufacturing.It is a“Employment-oriented Enterprise” established under the guidance of local “precise poverty alleviation” policies,which was invested by SH Company.As an important manifestation of social enterprises,poverty alleviation enterprises play a significant role in the local work of “poverty-relief”.The management of poverty alleviation enterprises is uneven.As being the leader among all the alleviation enterprises,in order to meet the market rules and the policy constraint while realizing the economic value and social value.What kind of strategic adjustment should be made in the ever-changing external environment has become the focus of this paper.Based on the theory of corporate strategic management,this paper uses the theory of strategic management to analyze the construction and development of IH as a poverty alleviation enterprise.Use the SROI Social Investment Return Assessment Model to measure and evaluate IH's business conditions,and quantify the economic and social value generated in the production and operation process of IH.Using PEST tool to analyze the special external environment of IH,Clearly state the policy constraint and prominent contradictions in market rules which are reflected in the special environment of “precise poverty alleviation”,that is the problem of production and management costs brought about by the resettlement of the poor labor force.Using value chain analysis IH company's own shortcomings.According to aboveanalysis,combined with the external market environment and IH the company its own resources advantage,recommend IH company choose the cost leadership strategy.Through reconstructing value chain strategy implementation plan,the use of commercial canvas manifested intuitively as social poverty alleviation IH company on the business model characteristics of enterprise,and according to the IH company as enterprise shall meet the conditions for poverty alleviation and must face the problems of strategic development direction are pointed out.Based on the survey of poverty alleviation workers in community government and other poverty alleviation enterprises in the same region,this paper deeply understands IH company and determines the strategy of IH company as a social enterprise to further realize its economic value and social value: Develop the intelligent manufacturing department with its own technological advantages,re-position competitor to build a strategic ecosystem,and predict the next policy direction to adjust strategic goals.Through the strategic research of IH,author hope to help it better realize its economic value and social value.The paper will provide some valuable lessons for the strategy formulation of other poverty alleviation enterprises.