Shandong Huaneng Power Group Development Strategy

As a great comprehensive enterprise developed from Dezhou chemical-fertilizer works,Shandong Hualu-Hengsheng Group Co., Ltd. have four business fields: chemical-fertilizer, chemical products, heat & power, building material. The chemical-fertilizer industry of China is established and developed under the plan-economic system, and is protected for many years by the Government. But the policy superiority is decreasing as the market economic being developed and perfected, specially, China has been in the WTO. The question of how to exist, develop, and strengthen is very urgent for enterprises based on chemical-fertilizer business. Strategic question is the first thing for the development and existence of a enterprise. It is reliable sign of outstanding management that an enterprise has drawn up and carried out an outstanding strategy.First of all, this paper by the SWOT method analysis interior resources of Shandong Hualu-Hengsheng Group Co., Ltd., determines strengths and weakness. Second, the paper declares opportunities and threats through analyzing business circumstances, include macroscopic circumstances and microscopic circumstances. Third, based on all above analyses, the developing strategy of Hualu-Hengsheng should be designed, include guiding principle, goal, steps, means & measures of strategy. Final, the conclusion of this paper is made.The strategic guiding principle of Hualu-Hengsheng made by the paper is as follows: base on chemical-fertilizer and chemical industry that use coal as material, select relative diversification as developing pattern, Hualu-Hengsheng should open up coal-chemical product chain, become a enterprise that is famous as a big coal-chemical group with globe competitive capability.The strategic goal of Hualu-Hengsheng is as follows:(1) It will has the strongest comprehensive capability among the Chinese coal-chemical industry, become a would-famous chemical company.(2) The competitive advantage will enlarge, and the cost will be lowest.(3 ) The profit figures will be best than others.(4) The average income of employee will be more than othercompany.