Research On The Performance Of GLC’s Strategic Transformation

In May 2018,the National Development and Reform Commission,the Ministry of Finance and the National Energy Administration jointly issued a Notice on PVG eneration-related Matters in 2018,known as the "531 New Deal".At the heart of the policy is a moratorium on the distribution of common ground-based power station targets,restrictions on the size of distributed PV and further reductions in feed-in tariffs.The "531 New Deal" marks an important turning point in the industry’s history and a baptism for the entire PV industry in China.Many photovoltaic enterprises are thus submerged under the wheels of the industry moving forward.Some enterprises choose to actively implement the strategic transformation in order to get out of the difficult business situation or to maintain the steady development of the enterprise.Against this background,this paper takes GLC,a leading photovoltaic enterprise,as a case study,combs the evolution of GLC’s management strategy since its establishment,and the concrete process of implementing its strategic transformation after 2018,and analyzes the internal and external drivers of its strategic transformation in detail.Then the financial performance of strategic transformation is analyzed by using event research method,entropy method,economic added value method,and non-financial performance analysis,in order to evaluate the implementation effect of the strategic transformation path of GLC after "stripping non-core business"+"focusing on silicon main industry",and finally from its experience of strategic transformation success.The results show:(1)Based on the analysis of short-term financial performance based on event research method,it is found that the first stripping of photovoltaic power plant,which is a bellwether event,has a positive effect on the market.(2)A long-term financial performance analysis based on entropy analysis found a significant improvement in both the composite performance score and the four competency scores in the third year of the strategic transition;(3)In the area of enterprise value creation based on EVA analysis,the study found that the strategic transformation started with a poor performance of EVA values,and started with a negative to positive EVA values in the third year.(4)Three dimensions of non-financial performance evaluation,customer effect,innovation effect and management effect,are selected according to the characteristics of the enterprise.On the whole,after three years of strategic transition,the financial performance level and non-financial performance level of the indicators show different degrees of overall positive trend.Finally,based on the above research results,this paper summarizes some enlightenment,hopes to promote the future sound development of GLC,and also hopes to provide some reference for enterprises in the photovoltaic industry in urgent need of strategic transformation.