Xiang Investment Group Strategic Restructuring, Exit The Field Of Thermal Power

Strategic direction determines the development direction of a enterprise. When mistake happens to strategic direction, enterprise has to pay heavy price. During the rapid development period of thermal power industry, Xiangtou Group enters the field in accordance with the original strategy. While lacking of control of the necessary coal resource, thermal power business falls into great difficulties. Especially when coal price jumps from 200 yuan/ton up to 600 yuan/ton, a great annual loss of 2 billion invades the group. The group has to fully withdraw from the field of thermal power. This investment error which is led by strategic error becomes a painful lesson to the group.In order to adjust the strategic direction, the author starts with a comprehensive analysis of overall environment including macro environment, business environment, industry status and trend, etc. Therefore, the author designs a whole strategy for the group from the angels of general idea, reconfiguration of business structure, investment strategy. Thirdly, the article makes a plan for economic objective, restructuring goal, programs of structural adjustment. Finally, the article identifies the implementation of the strategic transformation from group-level and subsidiary-level measures.Through this study, the author helps Xiangtou Group put a rational analysis on environment and development model. By means of strategic transformation, the Group can adjust the strategic error of trying to become top one in all invested industry, instead of that, it can build three platforms (strategic new industry incubation platform, integrated platform for provincial state-owned capital, supporting platform for resource industry). Basing on platforms and specific philosophy of "holding equity just for some periods", the Group can own an unique core competence which is difficult for industrial enterprises to copy. This strategic transformation can therefore establish a more appropriate direction for the future long-term development of Xiangtou Group.