Research On Debt Default Of Yongcoal Company Based On Strategic Management

Since 2020,economic growth at home and abroad has been sluggish due to the impact of the COVID-19 pandemic,and debt defaults have occurred in succession.In this context,Yongcheng Coal and Power Holding Group Co.,Ltd.announced without warning that due to the tight cash flow and the outbreak of COVID-19 in China,"20Yongcoal SCP003" could not raise enough money to pay the principal and interest on November 10,2020,with the total principal and interest of about 1.032 billion yuan,which constituted a material default.Although the default event of Yongcoal has passed,the impact and influence of Yongcoal company on the formation of credit bond market is far-reaching.After the success of Yongcoal company in the coal field,the development strategy of "mainly coal,moderately related diversification" was formulated.This strategy brought new glory to Yongcoal Company,but after more than 10 years,it gradually led Yongcoal Company into the mire of debt default.This paper analyzes the strategy of Yongcoal Company from three stages in the process of strategic management,and finds that the debt default of Yongcoal Company is related to the following problems existing in the company’s strategic management: first,with the adverse impact of domestic and foreign environment,the diversification strategy of Yongcoal Company failed to adjust in time;Second,in the choice of diversified development strategy,due to the lack of unified planning,failed to make long-term consideration;Third,the rapid expansion of diversified development resulted in poor operating results in some industries,which eventually led to the collapse of Yongcoal’s fund management system.Guided by the problems in strategic management of Yongcoal Company found in this study,this paper puts forward the following suggestions for state-owned enterprises to optimize strategic management and prevent debt default: First,from the perspective of strategic analysis,enterprises should make plans in advance in combination with their own development while actively responding to national policies;Secondly,in terms of strategic choice,enterprises should meet the three criteria of suitability,feasibility and acceptability to ensure objectivity and justice.Third,at the level of strategy implementation,enterprises should establish strategic management systems simultaneously,so as to achieve the implementation,feedback,adjustment,control and other stages can be followed by rules.Based on the perspective of strategic management,this paper analyzes the reasons for debt default of Yongcoal Company and puts forward corresponding suggestions in three aspects of strategic management process,which has certain enlightenment significance for state-owned energy enterprises to strengthen strategic management and prevent debt default risk.