Sichuan 3A Company Strategic Trasformation

3A company is a comprehensive enterprise engaged in herb plantation, development and selling, which mainly produces medicines related to chemical raw materials, chemical preparation, TCM raw materials processing, TCM preparation, biological engineering materials, medical instruments and so on. It's subsidiary corporation, Sichuan Dikang Scientific-Technology Pharmacy, appeared to have declining trend in major business achievements in the year of 2002, while its newly developed drugstores appeared to have good development tend in dealing chain business. Since the company is now in urgent need of solving the problems of raising capital and allocating resources, I write the plan of strategic changes.Through consulting materials, interviewing managerial personnel of the company and experts in pharmaceutical field, I collected some information relevant to the company and medicines. On that base, I made an analysis of the external environment of pharmaceutical field and drug chain retail business, and evaluation of the internal conditions of company. By SWOT, I established drug chain business as the new orientation for 3A company in the future. It is necessary for it to separate from the original pharmacy to develop to a new height. Drug chain business involves three fields, medicine, retail and chains, so I suggest that purchase platform, distribution system and product management should be the key field for 3A company to foster competitiveness in chain business, so as to design the drug chain business from different aspects as district, quantities, scales and development ways. As for the original pharmacy, subsidiary markets should be established as traditional Chinese medicine, absorbable biological materials and chemical preparation with high extra value. Meanwhile, as for the whole industry value chain, focus should be put on several key links, promotion, research and development. On solving the current problem of relatively low initiative, the company should follow the mold of first combining pure imitation and imitative initiative, then combining imitative initiative and original initiative.III 35The analysis of strategic changes have functioned a lot in integrating the development thinking of 3 A company staff, meanwhile, it is the reference for the company managerial personnel to formulate and implement overall development decision. I will consistently adjust and improve the plan in the development and changing process in the future.