The Strategic Analysis Of The China Construction Bank, Jilin Branch

Banking industry is one of the pillars of national economy. After entering the WTO, the Chinese government promised to open the bank market step by step in five years. With the influx of foreign banks, the competition between banks will become intensified. So, the four Chinese national commercial banks must make full usage of their advantages to achieve the optimization of the limited resources, if they want to take this ordeal. How to adjust the structure of the company, and to search for the best development strategies are the most important issues.The China Construction Bank, Jilin Branch, is a national commercialbank that is located in the center of the Northeast region and enjoys highcredit. The customers are the large and medium state-owned enterprises(SOEs) and government departments besides personal clients. Because of thelimited scale of private companies, the investment-orientation is towardsSOEs. But in recent years, a number of bad debts are formed due to the slowdevelopment, poor selling record of product, and difficult capital reclaim inSOEs, and also due to the fact that many SOEs are nearly or already shutdown. Unfavorable business environment and poor asset quality are only theexternal factors. From the perspective of the internal factors, the bank takeslittle consideration of its own benefit. As a result, the bank has incurred lossfor a long time and is under survival crisis. However, since it has been takingpart of government financial responsibility, the bank's management strategyis inclined to provide satisfactory service to its customers. In recent years, themanagement aim is to maximize values of the bank and to restructure itthrough entering stock market and attracting strategic investment. Thestrategic development aim and the internal organizational structure will be gothrough great changes. Meanwhile, the external environment will change dueto the plan of supporting the old industry base. Against the background ofsuch changes, we put forward the future development strategy.This paper analyzes the strategy development problems with management theories, strategic management, financial management,marketing and the method of the balanced scorecard. This paper imports many data, analyzes the present situation of management in the bank and puts forward the design of the future development while paying more attention to the qualitative analysis.Through the analysis, this paper believes, the strategic aim will make the Jilin Branch a modern financial enterprise which has abundant capital, strict internal control, safe operation, and quality service and increased benefit. So the bank should take actions in the areas such as internal organization structure, management pattern of finance, control mechanism of venture, innovation of product and service and the construction of enterprise culture. These will be studied in this paper.