Western Development Shuangma Group's Development Strategy Choice

Sichuan Shuangma cement (group) Co., Ltd. (SM group for short) is one of the backbone enterprises in domestic cement-production. It possesses a total asset of 848 million yuan, with an annual production capability of 1.6 million tons. In 1999, its annual sales income reached 364,543,100 RMB, net income 41,279,700 RMB. Moreove, it ranked 12 th and 13 th respectively in terms of output and sales revenue.The policy of deep development in westoffers opportunity for SM group's future development At present, there exists lots of cement industry enterprises, while the scale is comparatively small. The whole technique level and quality are low. Many of them still adopt backward techniques. The whole industry is greatly affected by planned policy. Therefore, our country has recently put a series of policies into force to support large-scale cement enterprise limit or even sift out smaller ones. SM group is confronting challenges from Jin Ding, Guang an, Fushan cement groups etc. Comparing with these opponents, SM group has its own advantages in scale production, large asset, business management, high reputation. Since the policy was carried on, the need for high-qualified cement will be enormous.Capability of accelerating development A high reputation, abundant asset and the ability to get loan through banks and stock exchange guarantee the future development of SM group.Future development strategy Under such a good opportunity, SM group should develop toward broad scale and group management. All members in SM group should strive to double its scale in five years.Implement plan1. Develop technique in-group The plan needs to invest 117 million RMB to set up a new product line. After completion, SM group will possess an annual production of 2 million tons, and realize scale revenue of 470 million RMB, net profit of 800,000 RMB.2. Annex Shuangsan corp. & develop scale outside Sichuan shuangsan constructional material limited cooperation is the most big cement-production enterprise, abundant in limestone. I suggest SM group purchase its state-owned shares to annex Shuangsan corp. Then build tow cement-production line. The project needs an investment of 709 million RMB. After its completion SM group could have an annual production of 1,5M tons and sales revenue of 360M RMB, net profit 53M RMB.3. Develop a project of plastic material for windows Invest 60M RMB to build this project with an annual output of 12,000 tons. Through this GM group could obtain annual revenue of 120M and a net profit of 15M RMB. Through those three projects, SM group could become a cement-production base in north and south Sichuan with its annual production of 3.7M tons, sales revenue and profits exceed 1B and 150M RMB respectively. SM group will become one of the top three enterprises in cement-production industry.