| Jia Chen Co., Ltd. was founded in September 2002 and it is a private high technology enterprise. It is engaged in water pollution control, water-saving project and environmental engineering. By advanced technology and good reputation, the income of Jia Chen Co., Ltd. rises year by year, and the enterprise scale also unceasingly expands. On October 2007, Jia Chen Co., Ltd. bought a chemical company with an annual capacity of 3,000 tons of furfural and entered a diversified stage of development. Recent years, the sales record of sewage treatment engineering declined, and the furfural business didn't achieve the expected merger economic returns. Jia Chen Co., Ltd. have got into the predicament of the current management.The basic reason of the company's predicament is lacking of clear development goals and unclear main business and internal resources, and not having sufficient capacity to support diversified business. Through comprehensive analysis of the external conditions and the internal resource and ability, this article identifies strengths, weaknesses, opportunities and threats of the company. By applying strategic management theory, this article aims at discussing about the management strategy and questions related of Jia Chen Co., Ltd. so as to help it out of its difficulties and achieve sustainable development.In this paper, we use PEST analysis and Porter's Five Competitive Forces, in which, PEST analysis is quoted to analyze external environment in order to find out the opportunities and threats, and the Five Force Model is used to look into the internal competition of the industry and analyze the critical success factors of sewage treatment and furfural business. Then the internal resources and capabilities of the company are in-depth analyzed, its main advantage is that the sewage treatment technology in Jilin Province is in a leading position in the industry, the main disadvantage is the lack of liquidity, and capital strength is poor. However the critical success factors of sewage treatment is precisely the advanced technology, and furfural industry is a key factor in the success of adequate capital.Taking advantages of SWOT analysis, we know that sewage treatment business has a good opportunity and profit margins, so Jia Chen Co., Ltd. should focus on current technological and personnel strength to support its continued development, and the threats of furfural business is far greater than the opportunities. By Boston Matrix analysis, we further concluded that sewage treatment business has high market growth and market share, and it has good prospects, so internal resources should be focused on the development of sewage treatment business; and market capacity of furfural is limited and the market share is low, and it have become obstacles to the development and the burden of the company, so it should be stripped.Through the above analysis, Jia Chen Co., Ltd. should implement refocusing strategies. It should exit from the business units of furfural, and integrate the internal resources to focus on sewage treatment business development, and promote the company's core competitiveness, and extend the core business and seek new growth. To ensure the implementation of the strategy, the paper also developed a series of security measures to enable enterprises to enhance their core competitiveness on the basis of bigger and stronger.By the limited capacity, the paper will inevitably be inadequate, I urge readers to criticize and correct it. |
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