The Research On Development Strategy For Shandong Haihua Group

Shandong Haihua Group is an extra large-sized modern enterprise mainly involved in developing the ocean chemical industry and petrochemical industry while integrating the related scientific research, industry and trade, and is one of the 120 experimental enterprise groups of China. Shandong Haihua Group was established in 1995. It has more than 15,000 employees, owns total assets of 16 billion, set up one public company and over 30 subsidiary companies. As the largest company in salt chemical, Shandong Haihua Group encounters development bottlenecks with the development of social economy and increasing market competition although it has scale advantages of basic chemical raw materials. Standing severe test of the global financial crisis resulted in economic efficiency declined seriously in 2008-2009. Shandong Haihua Group was holding by China National Offshore Oil Corporation in 2009 September. How to make the most of resources and management advantage of China National Offshore Oil Corporation, to carry out its own development strategy and obtain sustainable and efficient development, becomes an important task of Shandong Haihua Group.The external opportunities that Shandong Haihua Group enjoys including:the national industrial policy support, adequate supply of raw materials, the mature production technology in the industry, the increase of domestic rate of production equipment, leading product keeps relative balance between supply and demand, products comply with community consumption concept, and priority use of resources and capital advantages of China National Offshore Oil Corporation, etc. On the other hand, the company is in face of several threats such as, the cyclical nature of industry demand, fluctuations in prices of raw material, relative high transport costs, small radius of sales, and easier new entrants of potential competitors, etc.Its internal strengths including:leading products has scale advantage and visibility, advanced manufacturing technology, resources advantage and adequate raw materials, the good financing ability, adequate human resources, marketing forces is equipped and organization is more mature, more products and forms must industry chain, production management ability is more highlight, company culture is recognized by staff, etc. Meanwhile, the internal disadvantages of Haihua Group mainly lie in the following aspects, the staff quality and ability is weaker, procurement is not concentrated, core competition ability is not strong, technology research and development ability is weaker, employee enthusiasm caused by low wages are not high, etc.Through comparative analysis, this thesis concludes that Haihua Group must implement the integration developmental strategy of petrochemical combining with salt in the current environment and conditions. It is development of petrochemical, salt-oriented integration industry, and key development extends downstream chemicals, achieve combination of salt chemical and petrochemical to expand industrial chain, find a sustainable development road characterized with circular economy and resource comprehensive utilization, low carbon economic. At the same time, haihua group should take the agency of organizations and protection to implement strategic, optimize the allocation of reforming human resources, construct the standardized supply system, improve the science and technology innovation mechanism, optimize system consisting of marketing resources, deepen the reform of internal management, perfect the system of common value culture. Through these measures can effectively implement the strategy.