Galactic Enterprise Development Strategy

Yinhe Company is a corporation of stock system set up in the 90s. By owning a smart system and grabing the opportunities from the developing society, it has grown rapidly through the import and export of steels, chemicals and spare parts of automobile. In the past three years, owing to the changes of market structure and supply-and-demand relations, the takings of the enterprise haven't proceeded without obvious business innovations. Dealing in both chemicals and spare parts at the same time, the main business is not apparent and the aim of the enterprise is unclear. Therefore, the enterprise must reorient itself, deciding on strategic choices and making strategic steps. Aiming at the present business of chemicals and spare parts of automobile, this article analyzes itself in details from the parts of economic circumstances, industry circumstances and competence of the industry. By using the analysis of SWOT, we also analyze ourself from the advantages, disadvantages , opportunities and risks of the enterprise, coming to the following conclusions: the enterprise must give up the business of chemicals, execute strategic changes and strengthen its core competence, becoming a professional and world-top making-and-marketing enterprise in the field of spare parts of brake system. In order to carry out the strategic aim, the following jobs must be done. First of all, risks in the changing period should be avoided, such as loans receivable, link of funds, staff stability and enterprise credibility and so on. Secondly, as for the market expansion of spare parts, the overseas staffs should be localized to a larger extent; and enter the domestic market at proper time. Thirdly, in order to maintain costs on top and suppleness of production, delicate way of production must be carried out with great efforts. Finally, explore and perfect effective promoting systems, heading for an efficient and effective outcoming. In no case could a strategy be executed by some insular steps. It is a systematic project. This article only covers some main measures, not all, for the execution of strategic aims. Others are finance management, construction of platforms for network information and construction of enterprise culture and so forth, all of which are closely related to the strategy.