The Study Of Development Strategy In Sichuan Precision Machinetool Plant

The flexible application of strategic management to an enterprise determines its chance of survival in fierce competitions. As we all know, numerous large-scale co-operations abroad harmoniously mix their management with strategies, and benefits from this practice. Unfortunately, a great number of medium-sized and small-scale enterprises in China are not aware of the importance of strategic management, The strategic management of an enterprise lays a great emphasis on a correct choice of developing direction, a corresponding strategy, and an appropriate means to guarantee its fulfillment as well. Strategic management is not only a matter of theory, but also a matter of practice. It is most essential to make correct strategies and put them into effect in the critical stage of institutional transformation and at the crossroads of economic development.Sichuan Precision Machinetool Plant was established in 1950s, which is a typical state-owned small and medium-sized enterprise (SME). With its transformation in system and the rapid changes of exterior and interior environment, it is necessary to make development strategies.A proposal of development strategies and a means to guarantee its fulfillment is put forward in the thesis, based on a EFE, IFE and SWOT study on the externaland internal environment of Sichuan Precision Machinetool PlantThe thesis consists of seven chapters. The preface discusses the process of development in Sichuan Precision Machinetool Plant and the background of writing this paper, the second part is an analysis of strategic management theory; the third chapter makes a study on the internal and external conditions for the development of SPMP, with an intention to find the opportunities and threats to its development through an analysis of its macro development environment. The fourth chapter is an analysis of the internal environment of SPMP, with an aim to find its strength and weakness in its development through a research on its resources, capacity and major problems. The fifth part covers the overall developmental strategy in SPMP, in accordance with its management direction, its scope and policy so as to raise its overall strategy of development, and make its competitive strategy and its goals the enterprise wants to achieve in the coming six years. Specific measures are put forward in the sixth chapter, concerning its transformation, product, organization, sale, work force, and culture, etc. A conclusion is arrived in the seventh chapter.Through this case study, the author intends to call the attention of small and medium-sized enterprises in China to fully aware of the importance of strategic management.