Research On Low-cost Strategy Of NC Thermal Power Plant

Nowadays,we all realize the importance of electricity and heat.Apparently,they are an indispensable part in our daily life.As a leading industry,power industry plays a key role in national economic development.Since reform and opening-up,thermal power industry has been growing rapidly,accompanied by the high-speed development of economy.Co-generation mode was born at the right moment.Co-generation mode refers to making use of the hot steam which had put work in the steam-turbine generator to provide heat to users while make electricity.This mode gets strong support from the government as it has a great benefit on energy saving,environment improving,quality of heat supply raising and electricity increasing.The rise of thermal power industry greatly promoted the national economy and social development.During the 13 th Five-Year period,with the adjustment of the national economic structure,the deepening of the reform of the power system,the thermal power generation enterprises are facing new situation.In order to survive,develop and maximize profits,a thermal power generation enterprise must control production cost by means of scientific management.So,in order to be appropriate,in response to the current economic situation,the business philosophy of the enterprise must be changed.Cost management is the core part of modern enterprise management at present.Scientific cost management idea should play a part in business activities.At present,our country is carrying on the market-oriented reform with the goal of realizing the optimal allocation of resources,reforming the electric power market,and making the reasonable price of electricity and heat to make the national economy develop healthily and orderly through the competition.The main factor that affects the product price is the generation cost,so to the thermal power enterprise,it can effectively maintain the stability of the product price by controlling the production cost,and then promote the healthy development of the enterprise.In this paper,NC thermal power plant is taken as the research object.It’s a state-owned enterprise.Since 2014,it has implemented low-cost strategy for 5 years.The main purpose of this essay is to analyze the following problems: 1.The implementation achievements of low-cost strategy of NC thermal power plant;2.The problems of the executive of the strategy;3.The strategic adaptive ability under current strategic environment;4.Methods to optimize the implementation and supporting measure.This paper looks forward to making for the development of NC thermal power plant and providing some helpful information to the other thermal power enterprises.This paper develops the research according to the following logic sequence.Firstly,the paper makes an overview to NC thermal power plant and summarizes the problems of the cost management.Then it points out that along with the enterprise strategic environment changing drastically,the existing cost management pattern has been unable to adapt the corporate growth request.The low-cost strategy should be reassessed.Secondly,the paper uses the PEST method and Michael Porter’s five forces model to analyze the macro-background and competitive context of the thermal power industry.It raises the opportunities and threats the enterprise is facing in current environment.Thirdly,the paper summarizes the strengths and weaknesses of the enterprise by analyzing its inner resource and capability.Then it uses the SWOT method to mix and match all the strengths,weaknesses,opportunities and threats mentioned above.After in-depth study of SO strategy,ST strategy,WO strategy and WT strategy,it develops the strategy for the enterprise.Finally,according to the problems of cost management of NC thermal power plant,this paper puts forward several improvement and optimization measures for low-cost strategy of the company.