Research On The Development Strategy Of JZ Company,a Local Urban Construction State-owned Enterprise

Local urban construction state-owned enterprise is established by the local government through financial allocation,land or equity.It is mainly responsible for the financing function of government investment projects,urban development and urban construction,and the core business is land consolidation and real estate development.On one hand,the land consolidation business is mainly to replan and reform the land.The local urban construction state-owned enterprise delivers the land to the government for transfer,and obtains a certain proportion of land transfer income.On the other hand,real estate development business is mainly to create industrial real estate,commercial real estate or residential real estate and other products,and its income comes from the lease and the sales of real estate products.Due to the rapid development of the metropolis and the continually expansion of the metropolis,the investment and financing needs of the local urban construction state-owned enterprise continue to increase,accompanied by several pain points in the development process.Firstly,the main income of enterprises come from land consolidation and real estate development,somehow the business model is relatively simple.Secondly,the products developed by enterprises are mainly public products such as infrastructure and municipal public service facilities,and real estate products such as office,commercial and residential products.Unfortunately,only the real estate products of the enterprise are profitable,therefore the products are relatively simple.Thirdly,the local urban construction state-owned enterprises rely too much on financial subsidies,so its business capacity is insufficient.Finally,the enterprise mechanism does not match the market mechanism and development demands.In order to solve the above pain points,many CEOs of the local urban construction state-owned enterprises are gradually optimizing traditional products,expanding diversified businesses and reorganizing their organizational structures.However,the unbalanced and insufficient development of local urban construction state-owned enterprises has caused a major debt crisis to local finance,and even the great number of enterprises are facing bankruptcy crisis.Therefore,the thesis draws the references of strategic management,product development and operation,organizational restructuring and business expansion.Through comprehensively literature analysis,case study methods,questionnaire survey methods and SWOT analysis.In order to solve the problem of unbalanced and insufficient development of local urban construction state-owned enterprise,we research JZ company in the early stage of development in the same background.First of all,we analyze the external environment such as the policy environment,economic environment,social environment and technology environment,and the internal environment such as the company’s organization,financial situation and resource conditions.We find out the internal and external environmental factors from macro to micro.Secondly,we analyze the strengths,weaknesses,opportunities and threats of JZ company,and find the key factors for the development of JZ company.Thirdly,we list the four strategic combinations of S/O,S/T,W/O and W/T,and predict the advantages and disadvantages of JZ’s strategic positioning and strategic ideas in the above combinations.Fourthly,we select the W/O strategic combination as the best strategic combination,and come to the conclusion that traditional product optimization,diversified business expansion and organizational restructuring are JZ company`s strategic ideas.Fifthly,guided by the above three strategic ideas,we analyze the most successful urban construction state-owned enterprise in China,and find out the specific strategy implementation.Sixthly,in the above three strategic ideas,we formulate ten detailed implementation measures and six safeguard measures.Seventhly,by using this development strategy,we have made JZ successful and gained practical experience.Although the solutions still need to be improved,such as the feasibility of implementation measures and safeguard measures,we have provided reference and experience for other enterprises through the JZ case.Finally,we innovate the enterprise development model,study the relationship between strategic management,real estate products and mixed transformation of state-owned enterprises,and innovate the product development model.In terms of theoretical significance,it not only shows the deductive process of solving problems,but also combines strategic practice,strategic management theories and real estate related theories.In terms of practical significance,we provide solutions to JZ company and other local urban construction state-owned enterprises by formulating JZ company’s development strategy.