Shenhuo Group Integration Of Industrial Chain

Henan Shenhuo Group Co.Ltd is based on coal,electricity,aluminum production and processing-based cross-sectoral,cross-regional country of large enterprise groups,the Department of the national 520 key enterprises,one key enterprises in Henan Province. Because of coal and electrolytic aluminum market volatility,and cash flow unstable, coupled with the industry chain imperfections,regulatory bodies bloated,high-risk business.In order to solve the above problem,integrated the Group's industrial chain,has become the enterprise to overcome the financial crisis,efforts to enhance the competitiveness of enterprises of important issues.This study belong to the industrial chain of integrated micro-scope.At the industry chain integration of economic and market environment and the status quo analysis of the industrial chain business process,this paper combining theory and practice,a combination of quantitative and qualitative methods,pointing out that economic and market environment,as well as the status quo are conducive to industrial enterprises the development of chain integration,and implementation of an integrated industry chain to carry out an analysis of motives.The development of the industrial chain integration and the cost-effectiveness of integrated analysis,the use of combining theory and practice of the method,put forward an integrated program,procedures,key points and benefits as well as the existence of risk.Through the external economic environment and the status of the industry chain analysis,this paper argues that the coal industry as the national economy of our country's basic industries and the first energy,there is a huge market space.Aluminum as the basic raw materials,there are also enormous market space.At the same time the policy and trends in the industry are encouraged to carry out integration.There are many questions such as incomplete industrial chain,inter-industry collaboration and matching bad,many levels of management,internal bodies bloated,higher cost of management problems,the implementation of the industrial chain integration,companies are reducing costs,achieve economies of scale and sharing of resources,implementation an inevitable requirement for sustainable development.The implementation of the industrial chain integration and really realize the integration of coal aluminum operations are the inevitable requirement for increase the effectiveness,spend the crisis and achieve sustainable development.The success of the industrial chain integration will bring about significant business coordination effect,but also can improve the corporate governance of listed companies to avoid hostile takeover,has played the role of the management of the cash pool.At the industrial chain integration process,to ensure the structure of property rights and corporate governance,organizational structure,human affairs,incentive mechanism,management processes and informationization construction,will achieve the success of the industry chain integration.