Application Of The Ecological Strategy And Circular Economy In WISCO

Since 1960's, business management has come into the times of strategic management when the changing environment began to affect the enterprises' operation and decision. Then, enterprises focused on the influences of the environment instead of the internal management and highlighted the factors in the decisions. With the environment changing, the enterprises' also changed. Since 2000's, the human being feels the crisis because the environment becomes worse and worse, and the nature resource reduced so quickly. Sustaining development is so difficult problem faced by human being. The businesses have to adjust their operation mode to deal with the new risk and challenge. Some investigations show enterprises' objectives will change when they evolve from the form of artificial system to the form of ecological system. Eco-industry and circular economy are the two mainstreams of the environmental strategies in the world today. Moreover, these two issues are more important for China after its 20-year quickly developing. Basically, these problems are belong to the field of strategic management, and they are very complex in theory investigation. As the third largest steel company in China, Wuhan Iron and Steel Corporation (WISCO) has the annual capacity of over 10 million tons steel products. WISCO is making its long-term strategies, facing the same changes and challenges. Based on this background and the theory of system form and business management, the article analyses the evolutionary process of the business strategy theory and the reasons of establishing ecological strategies, after reviewing the basic developing process of system science theory and enterprise management theory. Meanwhile, the paper analyses the model of circular economy in WISCO, by applying the principle of the ecological strategy theory and circular economy theory. I will be very glad if the paper can help WISCO make a perfect strategic plan. This paper is structured as follows: In the first chapter, the paper reviews the basic developing process of the business management theory and business management theory, emphasizing on the study of system form theory. In the second chapter, based on the evolutionary process of business strategy theory, the article introduces the theory of competition strategies, CIM (computer integrated manufacturing) strategies, and ecological strategies. Some suggestions on the development of Chinese companies are given by the author. In the third chapter, the paper analyses the reasons why WISCO should establish ecological strategies, and the relationship between ecological strategy and circular economy. In the fourth chapter, the paper explores the model of circular economy in WISCO. The survival and development of the effectiveness of enterprise system are faced with more stiff challenge because modern enterprises are in a dynamic and complicated situation. WISCO is also facing the same situation. This paper tries to base business management theory on system science, in order to make business management theory have much more scientific and future characteristics. This paper tries to do its best, but its effects only can be commented by the future people.