Dongfang Electric Group Supplies The Company's Development Strategy Is Discussed

Due to the reform of economic system. DEC(Dongfang Electric Corporation) Goods & Materials company, A state-owned enterprise, was cornered and its profit has been largely reduced. By using the framework of SWOT analysis, this paper discusses the strategic environment of the Goods & Materials Company for which there are many opportunities and threats, and the advantages and disadvantages of the Goods & materials Company are found out. After doing this, the company adjusted its strategies for operation from the focus of the enterprises to power projects. Then, change the company situation thoroughly. The strengths and weaknesses of the Goods & materials Company can also be found by using SWOT analysis. On the basis of the analysis above, this paper also tries to discuss what kind of strategies the Goods & Materials Company should adopt for its future. A number of proposals, which are practical, are also made in this paper. What is more important is that the writer, by strategic management , would like to find an appropriate method for other state-owned goods & materials enterprises to adjust their businesses.There are three parts in this paper. In part one, a brief introduction to the Goods & Materials Company's background is given and the reasons why the company has been in such a difficult situation are also explained. Reform of economic system is the main factor that leads to the difficult position. In part two, SWOT analysis is made in this paper. The Goods & Materials Company has grasped the opportunities and adjusted its strategies. The company finally extricated itself from the predicament. First, Part Three analyzes the strategic environment, especially the political and legal environment, technological environment, economic environment and cultural environment. Second, this part discusses STF's capabilities of management and operations, financial status, marketing capabilities, etc. Third, this paper suggests that the Goods & Materials Company strengthen its strategic management, hasten reform of share system, and establish a modern system of enterprises. It is the essential way out for state-owned enterprises to put the share holding system in practice which make the Goods & Materials Company operate independently as a legal entity the market and participate in the market competition. Meanwhile, the paper analyses the characteristics of core competence of enterprises and suggests that the Goods & Materials Company develop its core competence and protect its core competence All the suggestions above are the prerequisites for the existence and development of DEC Goods & Materials Company in the near future.