Research On Steel Industry Development Strategy Planning Of Hebei Iron & Steel Group

Rise and decline of steel markets have very close ties with economic prosperity. Make a general observation of development status in the world steel industry since new millennium, we will find: the steel market's demand will increase with steady economic growth; otherwise, it will depress with economic decline. Tanggang Steel Group and Hangang Steel Group consolidated and formed the Hebei Iron & Steel Group Co. Ltd in June 2008. Global financial crisis broke out in the second half of the year, the world economy, including China, was inflicted heavy casualties. The Hebei Iron & Steel Group had faced unprecedented difficulties such as steel demand decrease, low price, high cost and change in development mode.The Hebei Iron & Steel Group's scale ranks forefront among the national steel enterprises, but the overall competitive ability is relatively weak comparing with advanced steel enterprises. For solving the problem from big to strong and turning the Group into the world's first-class steel enterprise, Hebei Iron & Steel Group must start with strategic height, through updating equipment technology, improving scientific and technological innovation, optimizing product structure and layout, enhancing competition itself, in order to realize the strategic goal of "leading domestic and international first-class ".This paper uses combined method of the theoretical research and instance analysis: based on the brief introduction of strategic management theory, combined with actual situation of Hebei Iron & Steel Group. The paper points out the gaps of Group in resource security, scientific and technological innovation, equipment level and product structure by means of Group's internal condition and external environment analysis. The paper expounds the Group's main problems faced in developing steel industry: excess steel capacity, market oversupplied especially structural overcapacity problems, iron ore supply shortage and price rising, domestic steel demand growth slowed, product demand structure upgraded, higher and higher environmental requirements, etc.The paper analyzes and chooses development strategy of the Group with making use of"SWOT"strategy model analysis method. Then determines the combining of development road of connotation and denotation combined with M&A and industrial layout optimization; promoting the adjustment of industrial structure and upgrading pace; promoting"four-transformation", creating "four high-quality goods base ", enforcing the development strategy of the steel industry. The paper establishes a clear goal or thinking in following five aspects: paying attention to investment emphasis and updating equipment, optimizing product structure and promoting technological innovation, realizing reasonable layout and implementing coastal moving, consolidating scale advantage and promoting M&A, meeting social needs and promoting energy conservation and environmental protection level. The paper formulates detailed planning measures and solutions, plans to implement Hebei Iron & Steel Group's transformation from big to strong enterprise.