Research On The Development Strategy Of Northwest Yongxin Group

Northwest Yongxin Group was founded in1993. Its previous part was Northwest Yongxin Group, which was established in1965. Through the development of nearly20years, it now has total assets of1.5billion yuan, annual sales income of1billion yuan, and the total number is more than2000of the employees, and among it more than1000are technologies. In the past decade, it has been faced predicament of bankruptcy due to the lack of business strategy, wrong decision-making, and disordered management. The new leading body was adjusted in June2005, and tremendous changes had taken place after the enterprise endeavored to establish the modern enterprise system, management adjustment, and optimize the structure, etc. In order to encourage the rapid and successful development, the enterprise urgently need an appropriate and scientific business strategy and long-term development plan.The article strategically made a comprehensive analysis of the external macro-environment, the industry development trends and major competitors; it systematically studied a number of important internal factors that influence the Yongxin Group’s long-term development with the method of G-PEST analysis, Porter’s five competitive model, SWOT analysis matrix, and other strategic management theories; combined with the application of external-factor analysis of the summary table (EFAS table) and the internal-factor analysis of the summary table (IFAS table) and the Yongxin Group’s actual situation, it has proposed a comprehensive development strategy, which make the fine chemical industry bigger and stronger with the paint industry chain as the core, assisted with the quality medicine and business services sector, which can be called the "One Body Two Wings" development strategy.In order to ensure the comprehensive, timely and effective implementation of the overall strategy, the author has developed a series of security and control measures:1. Establish a standardized and efficient management system;2. Form a multi-channel, multi-mode of financing the environment;3. build an outstanding management team and technical team;4. Increase investment of researching and developing to upgrade business skills;5. Innovate on the marketing tool to enhance Yongxin brand;6. Improve an internal information systems and optimizing internal control measures.