The Study On Hualu Hengsheng's Development Strategy

Under the background of globalization and financial crisis, the uncertainties of industry and enterprise development increase rapidly. It is difficult to forecast the global economic trend and take immediate response. There are many policies and measures released by Chinese government, and the coal chemical industry's development with both opportunities and challenges.As a comprehensive chemical enterprise which located in the nitrogenous fertilizer foundation developed from childhood, how to make a correct strategy to avoid risks and growth effectively, Shandong Hualu Hengsheng Group Co., Ltd. is facing a new challenge in strategy analyze and execution.Many basic strategy management theory such as environment analyse, corporation growth strategy, competition strategy, as well as many research methods such as field study and case study, have been used here and there. Three main questions and topics have been discussed:Firstly, Group's development strategic outside-environment analysis. Coal chemical industry an its industry value chain is analyzed deeply, and the opportunities and threats of environment is concluded at last.Secondly, Group's development strategic inside-environment analysis. The history of enterprise, the business and product, the competitive advantage, are the main factors. So the strengths and weaknesses of the enterprise is appeared.Thirdly, Group's strategic position, objective and strategic choice. Combined with the earlier analysis, based on SWOT concept, the paper comes to the strategic decision and action.After the systematic and thoughly analysis, such conclusions have been presented:Hualu Hengsheng Group should consolidate upstream gasification and traditional industry superiority, use the advanced gasification technology,, enrich downstream product and entire industrial chain, manufacture new product with high added value, and explore the development coal coking and the non-coal industry chain positively.The international crude oil prices have fallen, coal chemical industry's cost advantage is no longer apparent, but the coal chemical industry still has big development opportunities. This study is not only good for Hualu Hengsheng, but also iv very useful for other enterprises in same industry.