Yuntianhua Group Development Strategy

Why can a celebrated enterprise remain ever prosperous? It is not only because of its very powerful financial strength and superiority in the resource possession, but particularly because of its strategy (the program or plan considering the overall condition and guiding for a long period) that is made for its subsistence and development. Since 1974,Yuntianhua Group Co.,Ltd has been developing and growing progressively, and making an outstanding achievement as well. With the internal and external conditions changing and the competition intensifying, it is very important for Yuntianhua Grop Co.,Ltd to research and execute the strategic management so as to consolidate and strengthen its dominant position and to maintain its development. The important mission to one enterprise's strategic management is to obtain the dynamic balance between its external, internal conditions and its operation targets. This article analyzes the economic development in the industry, the influence of China's entry to WTO, and measures taken to develop the West, It proves that the external conditions bring opportunities and challenges. Through the analysis on Yuntianhua's resource state, competitive position, marketing level, financial state, organization structure and enterprise culture, the strengths and weaknesses can be clearly concluded. On the basis of these analyses and conclusions, it comes out the development strategies necessarily for Yuntianhua to practice, that is, conglomerate diversification strategies of 'joining and withdrawing in some field' and 'conducting and non-interfering somewhere according to the actual situation'. Through the comprehensive analysis of Yuntianhua's three main subordinate corporations, the related diversification strategies are presented for them to carry out, and so are the corresponding competing strategies. The establishment of functional strategies is very important to the strategy's enforcement. In the article, there is some analysis on the two major functional strategies as marketing and research and development. Hence, it is suggested that, Yuntianhua should take a market developing strategy for its fertilizer market, should take market permeating and developing strategy for its organic chemical product, and should also shift its research and development from its present catching-up strategy to mixed strategy. Finally, there is a analysis on the key methods to strategy enforcement. It concludes that the key methods to Yuntianhua's development include personnel resource development, corporation integration, and fostering on its core competing strength. In order to try to link with the fact, the context cites a lot of accurate data. Some developing strategies forwarded in the article have been put into effect. We firmly believe that the successful strategies can strongly guarantee one enterprise's subsistence and development.