Research On The Development Strategy Of Jinsheng Company

Jinsheng Company is the largest enterprise of Nonferrous Metals in Shandong province. The company's business involves the salvage of scrap copper, smelting, electrolysis, deep process, technology development and sales. Through the constant development over ten years, the overall strength of the company is situated the fifth in the industry of Nonferrous Metals in China. At present, the company is in the second pioneering stage, facing a lot of strategic problems such as choosing the developing direction, how to develop continuly etc. To study development strategy of Jinsheng Company has the extremely vital significance.On the basis of current situation to Jinsheng Company, adopting Michael Potter's theories of "five competing strength models", "SWOT" and "Value chain" analysis, combining the strategic management theories, the paper has carried on deep research on the industry competitive environment and the company internal environment and has offered the reliable basis for formulation of company's strategy.Using matrix picture designed by GE (trade attraction-enterprise strength matrix), the paper analyzes and verifies the subordinate units of Jinsheng company and points out the company's production developing direction. The company key investment industries or products include the copper cathodes, copper processing and real estate. The products that need keeping and recombining are the wire and cable, etc. then, using "3-aspect business management models" developed by McKinsey, this paper defines the three-aspect business development strategies of the company. The first aspect, the copper cathodes business, brings most business incomes or floating cashes. The second aspect, copper processing materials and cables, including emerging new developing business, pursues incomes and expands market share. Representing the expansion direction of exiting business or business development, the new fields are the new income channels that the enterprise builds. Then the third aspect (new high-level copper materials, real estate and service trades such as futures trading, etc.) includes the business and distant view in the future. It is the future direction that the business will choose. The paper analyzes opportunity and challenge strength, weakness of Jinsheng Company, and confirms the overall development strategy and the competition strategy. It points out the development direction of Jinsheng Company in the future. As a corporate strategy, vertical integration will be adopted for primary business, while diversified development strategy will be adoped for secondary one. In regard to business strategy, overall cost leadership should be a fundamental competitive one, which can be subdivided into product management strategy and capital management strategy.Finally the text explains the implementing scheme of the company's development strategy, planning separately on institutional framework, operation, human resources, marketing, brand strategy and financial affairs etc.The innovation points lies in adopting matrix picture designed by GE to analyze and verify the subordinate units of Jinsheng Company and point out the company's production developing direction. Adopting "3-aspect business management models" developed by McKinsey, this paper defines the three-aspect business development strategies of the company.