The Study To The Case About The Development Of Huachen Co.Ltd.

At the first part, the foundation and development of Hua Chen company is described and the competitors in phenol and acetone field is introduced. Specially it illustrates the production and operation of Hua Chen company and the competitive status in the field. At last, according to some related policy declared by nation, some advice is given to Hua Chen company for its development in the future.At the second part, this article makes a detailed analysis base on the information given in the first part. Firstly, it analyzes the internal and external competitive circumstance in phenol and acetone field by using the theory and method of Strategy Management and Marketing such as Competitor's Analysis Mode (Michael Porter), SWOT Analysis method and so on; then ,it analyzes the financial statement of 1998 and 1999 of Hua Chen company by using the theory and method of Financial Management; and thirdly, it compares the two forecast results of income statement in normal and in merger. Finally, by the comprehensive analysis above, it draws the conclusion that merger or recombination will be benefit to Hua Chen company's development.The essential theories and study methods used in this article have significant theoretical and practical values. It will be good to the supervisors in modem corporations to increase their decision level and guide them to make a scientific decision.