Strategy Of Creating Excellent Works For Steel Business Of Hunan Valin Co.Ltd.

Hunan Valin Iron & Steel Group Company Ltd. called Valin Group for short below is a large-scale iron & steel group combined from the largest three state-owned steelmakers of Hunan province in 1997, which are Lian Yuan Iron & Steel (Group) Company Ltd., Xiang Tan Iron & Steel Group company Ltd. and Hunan Heng Yang Steel Tube (Group) CO., Ltd. Valin Group is so important that its growth is considerably effective to the economical growth of Hunan province.In the last ten years the steel industry of China has been grown rapidly and China's annual output of steel continued to be the No.1 in the world in the last ten years. In 2005 the global steel output was 1129 million tons, and the steel output of China was 349 million tons, which was 30.91 percent of the global output. The abnormal high-speed growth of the steel industry induced large demand of the minerals such as iron ore and coal, and made the competition among the steelmakers fiercer. The rapid growth of the steel industry also induced lots of problem such as shortage of minerals, natural resources over-consumed and wasted, and pollution. All the problems do great harm to the sustainable growth of the steel industry. The government try to make the steel industry return to develope normally by the means of promulgating "the Policies on the Development of Steel Industry". But to the steelmakers, the most important thing is to survive the cold winter of the steel industry. Valin Group has some comprehensive competences, but it faces more threats. According to its environmental analysis, I think the only way to success for Valin Group's steel business is to implement strategy of creating excellent works.First this paper presents the environmental analysis of Valin Group. The analysis includes the out environmental analysis and the inner environmental analysis. The out environmental analysis includes the macro-environmental analysis and the steel industry analysis, which help us to understand the steel industry and the competition among the steelmakers better. The inner environmental analysis will let us know its organization and structure, its human resources, its management, its financial status, its D&R, its marketing and so on better. According to the analysis above, the paper will go on with the SWOT analysis in order to show Valin Group's strengths and weakness, its opportunities and threats.Secondly, based on the environmental analysis, under the highlights of Valin...