Analysis Of Chalco--from Financial Reports To Business Model Innovation

The Business Model Concept started in the 1990s which benefited from vigorous developments of the Internet Economy. Entrepreneurs then, with an attractive business model and plan can draw attention of hundreds of million in venture investment and the elements in traditional operations, such as products, services, technologies, personnel, management systems etc are not as important. Only unique and innovative business models that can decide everything are favored by investors. Business models have created several new economic wealth leaders especially for internet companies. In fact, business models are not of exclusive rights to the internet. Any organizations, whether profit or non-profit making organizations have had already established sets of survivals and development of the standard systems, as well as for the means and measures operations which are known as business model.Currently, researches regarding this area of interest have already been an quite developed in the global research field focusing on high-tech enterprises to general enterprises but, in the domestic research field, it is still at the level of wide-ranging tracking. Whether in the sense of globally or domestically; practically or theoretically, recognition levels on the Business Model is gradually raising.In this paper, a case study on "Chalco" will be analyzed. Analysis of its financial statements will be taken into consideration and from this perspective, the unique business model of Chalco's are uncovered through its financial data. Challenges, suggestions and the necessity of the innovation of the business model are steadily discovered.This paper is divided into Five Chapters and organized as follow:Chapter One: This chapter briefly introduces the research background of the thesis and also summaries the innovations and limitations towards the analyses.Chapter Two: Business model: a theoretical review. This chapter starts by reviewing the domestic and global research field of the Business Model. On this basis, the natures of Business Model from the management perspective are elaborated. Finally, the background, significance and the core strategy of the innovation of the Business Model are stated.Chapter Three: Chalco: Analysis the characteristic of its business model from its financial statements. The main content of this chapter is analyzing the financial conditions of Chalco, including profitability, solvency and performance after marketing approval. And through horizontal comparison with Alcoa, it can be found that the financial characteristic and condition of Chalco, and then analysis the characteristic of its business model from financial data.Chapter Four: Business model of Chalco: problems and challenges. The main content of this chapter is analyzing the problems and external challenges faced by Chalco based on the through analysis of the finance of Chalco. There are many uncertainties in Chalco's future operation because of the increase of production cost and government macro-control which make the innovation of business model inevitable.Chapter Five: Business model of Chalco: analysis on innovation mode included in this chapter. There are various suggestions about how the business model can be innovated which take into account of aspects such as strengthening the management of the supply chain, re-creating the enterprise core competiveness etc.In this paper, Chalco will be used for research and analysis. Within this paper, the theory and practical field of the business will be further strengthen to raise awareness level of the business model innovation.