Guangdong NanFang Soda Ash Manufactrue Co.Ltd. was established in 1991.It was an important project in Guangdong Province during the 8th 5-Year Plan period.lt was ranked the 10th position in the Soda Ash industry in China.However,the lack of investment has caused the overload of debt and longer construction time,resulting in loss of market opportunity and almost bankruptcy just at the beginning of the production.As the new leading team was formed and thanks to the great opportunity of Soda Ash export, Guangdong NanFang Soda Ash Manufactrue Co.Ltd won a huge battle against previous losses and made an annual profit of 100 million RMB in year 2000,Secretary Huang Huahua spoke highly of Guangdong NanFang Soda Ash Manufactrue Co.Ltd. after his visit as an example among the SOEs of turning loss to profit and suggested that an enterprise group be set up by Guangdong NanFang Soda Ash Manufactrue Co.Ltd..Using theories like five force of Portor,chains of value and enterprise group,this article makes an analysis on whether or not and how to set up an enterprise group and put forword specific steps.
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