Study Of Company D’s Strategic Transformation In China

In recent years,facing the impact of the epidemic on the economy,affected by regional conflicts such as the 2022 Russia-Ukraine war,coupled with the world’s major economies in the new energy scheme,the price of crude oil has fluctuated violently,which brings a significant challenge to foreign investment and business operations in China’s petrochemical industry.In contrast,the new opportunities created by the political and economic situation,the development potential created by the digital economy,the improvement of resident’s living standards and the resident’s pursuit of healthier and greener life under the new normal in the epidemic period,some petrochemical production and sales companies are realizing that strategic transformation is a reasonable method,perhaps only method,to be adapt to the situation to meet the vision.For sizeable multinational petrochemical companies,business development in China is a critical factor that affects the whole company,and it is an effective response to seize new opportunities for businesses in China to carry out operational strategic transformation.This dissertation takes D company as a case study object to analyze D company’s internal and external environment.It finds that the existing company strategy no longer meets the needs of enterprise development and new economic soil.In recent years,the company’s strategy in China is unclear,the development of chemical materials and other health businesses such as nutritional products are inconsistent,corporate management and resource have not matched the demand of excessively diversified businesses,and D company’s chemical business has been in meager growth in recent years and not bringing much profit as other business did.This article believes there is the necessity and urgency of strategic transformation for D company,which shall actively explore strategic transformation options and implementation plans.The significant actions that Company D could take include divesting the chemical business,vigorously developing the life science business unit,especially the health and nutrition field,through mergers and acquisitions,etc.,to establish a business growth model and expand the business model,and to promote the company’s internal capabilities project.In addition,to ensure the effectiveness of the company’s strategic transformation,during the process,it is necessary to strengthen the company internal management,to make the company’s future direction and vision understood and carried out by the entire company,to improve strategic goals during the process,to build company culture to raise the cohesion of whole company as a oneteam workforce.This paper mainly figures out problems during the development of D company in China from the early 21 st century till now,analyzes the reasons behind the problems,puts forward feasible strategic transformation recommendations and implementation plans,and finally proposes risk prediction and active prevention in strategic transformation.