The Research Of Jinan Steel Group's Internationalized Business Strategy

Iron & steel is a basal industry for one country's industrialization and mainstay for national economy.Since the reform and opening policies implemented from the year of 1979, especially during the Tenth National Five-year Plan(2000-2005), the iron & steel industry of China has been seen a rapid development. With the ratio of 34.4% in total world crude steel production and taking the first place in the world, China production in 2006 reached 418.8 million metric tons. The development of the industry enhanced the national industrialization. But rapid expanding scale has caused some serious problems such as supply exceeding demand, fierce competition, negative external economy and extreme shortage of iron ore etc. It is the main choice for some king sized iron & steel companies of our country to implement Internationalized Businesses Strategy (IBS).Jinan Iron & Steel Group Corporation (JISGC) is a king sized iron & steel producer which rank No.6 in home and No.24 in the world. During nearly 30 years after execution of national reform and opening policies, especially within the period of the Tenth National Five-year Plan, JISGC has developed to a enterprise with the scale of 10million tons per year and strong competition ability. The integrative competition ability has been improved. As one of six sub-strategies, the "export-driven strategy" which implemented in the Tenth National Five-year Plan led the trade of JISGC to expand rapidly. At the same time, the dependence extent of products and raw materials on foreign markets also gradually increased. The JISGC's international businesse has stepped up a new stage which integrated with FDI, trade and international shipment. Under the new situation, it is very important to study systematically the JISGC'S IBS for the future challenge.Guided by the relevant theories, thorough the methods of data statistics analysis, cases study, qualitative and quantificational analysis, questionnaire etc., used the study tools including Spider Net Model, the Relations Between Enterprise Resource and Competition Model, Five Powers Model, SWOT, Weighted Grade Measurement Method etc., the article analyzed and studied the history, development trend, motives and environments of JISGC's international businesses. Based on these analyses, the author put forward "Going-Out" as the basic strategy, at the same time, in the field of export, resource import and FDI, different sub-strategies also put forward. Thus the system of JISGC's international businesses strategy established.In order to make the strategy more realizable, the article comprehensively analyzed the problems regarding the ensuring measurements and control mechanism, and put forward the solutions respectively.