The Developing Star River Power Company Walking With Difficulty

After carrying out the renovating and opening policy, Chinese Power Industry has been developed at very fast speed for about 20 years. Power supplies is enough to meet power demands on the whole at present. But as the state monopoly industry, it has shaped many problems as the Railway, Civil Aviation and Telecommunication did during the long time planned economy periods, such as neither government nor enterprise, outdate management, etc. With Chinese shunts from planned economy to market economy, especially after entering into WTO, the management system of Chinese power industry is too difficult to adapt the market and competition situations.Chinese power industry renovated at the end of 1980's. After 10 years designing, Chinese Power Industry-renovating steps into the operating phase. The first stage target is that the power plants and the power grid managed respectively, and different power plants outputs at the basis of competitive prices.The case takes aim at the early stage of the renovation. It is the period in which many systems and policies change, and benefits allot once again between many different interest groups. Star River Power Company belongs to the Star River Group, founded at the stage. The management team analyzes the internal and external environment faced by the company at length, and found the opportunity from the environment and the strengths being in the company, and made the appropriate strategic choices. After making a summary of he Star River Company grasping the environmental opportunity, making a strategic target and founding the company, the case gives some strategic advices at the basis of analyzing the succeeds and defeats of the company.