Research On The Development Strategy Of D Company

Under objective circumstances which contain fierce competitions and environmental uncertainties,it it the key of developing enterprise that choosing the right development strategy to improve the adaptability to the environment.At present,Chinese iron and steel enterprises are facing tremendous pressure of reducing production capacity,saving energy,reducing emission and realizing business transformation.However,the crisis is accompanied by a turnaround.D Company has begun to get involved n the field of industrial tourism.Choosing a correct development strategy during the transition period is particularly critical.Therefore,this article,based on the information of D company,focuses on strategic analysis,strategic selection,risk assessment and implementation guarantees in order to provide a feasible strategic management idea for Chinese steel companies.Based on the analysis of D company's internal and external environment,The research emphasis of this article is evaluating the current performance of D company's strategy,reshaping the strategy to attain the best state and exerting a series of safeguards to realize the new strategy.The main content includes four aspects: firstly,analyzing the strategic environment to extract the four factors of opportunity,threat,strengths and weaknesses of D company.Analyzing the ability of grasping opportunities,avoiding threats,using its advantages and making up weaknesses through the EFE matrix and IFE matrix.Secondly,through SWOT analysis,SPACE matrix analysis and IE matrix combined with AHP analysis,two alternative strategies which are market penetration strategy and product development strategy are determined.Through the QSPM matrix,we found a differentiation strategy to penetrate market is the most suitable strategy for D company.Thirdly,through the Expert Grading method,the main risks of differentiation strategy contain business decision risk,financial risk,difference invalidity risk and difference replication risk.After constructing risk measurement indicators,the nest step is dividing the risk interval and using the Efficiency Coefficient method to obtain a standardized corporate strategic risk evaluation matrix,so that the risk of D company can be dynamically monitored and early-warned.fourthly,a series of safeguards must be implemented to assist in the successful implementation of the strategy,such as improving the quality of manpower,improving policy regulations,establishing supervision mechanisms,incentive mechanisms,risk early warning mechanisms,and infiltrating corporate culture.The innovation of this article is located at constructing the qualitative and quantitative SWOT matrix,IE matrix and SPACE matrix of D company,and comprehensively using multiple methods to jointly determine the optimal strategy.Besides,the article has introduced strategic risk measurement factors into the strategic management framework,and proposed a simple strategic risk early-warning mechanism to improve the success rate of strategic implementation.However,due to the cost and difficulty of obtaining information,this risk warning indicator has low universality and needed to be further improved and adjusted through application in the future.In addition,the selected company in this article is a diversified business enterprise which operate both steel production and trading and steel industrial tourism.So the company type that it can provide reference for is also limited.