The Main Business And Diversification Strategy Of Nanning Jianning Water Group Co.,Ltd

Nanning Jianning Water Group CO., Ltd. is a large scale municipal state-owned enterprise group, which is organized by People’s Government of Nanning Municipality to accelerate urban water infrastructure construction and integrate Nanning’s survival water assets. The Water Group is in charge of the construction and operation of water infrastructure for the whole Nanning city as well as the sewage water treatment facilities for the municipal five counties.By the theory of strategic management, to combine system analysis with demonstration research, relying on the analysis model of competition structure, value chain, BCG, SWOT, etc., this article aims to analyse the external environment and internal development condition of the Water Group through the following investigation. For the external environment, the article analyses the China government’s attitude for water resources, the general situation of Nanning’s water resources and water infrastructure, the influence of laws and regulations and policies, entry WTO’s influence on the Chinese water development, the progress tendency of integrated water management, the water market development and water price changes and the industry structure, etc.; For the internal development condition, it was analyzed by the development foundation of Water Group, competitiveness and potential, characteristic life cycle and so on. Based on the analysis, the Water Group is faced with four problems, i.e., the complex terrain of Nanning, high cost of water facilities construction, serious water pollution, increasingly serious water and soil loss; and six opportunities including water price availabe to rise, weak bargaining ability of suppliers and customers and so on. In addition, the Water Group possesses the advantage of stronger executive ability and disadvantages of weak profitability and backward internal construction and management.In the base of above-mentioned analysis, the article concludes the Water Group’s vision, mission, enterprise spirit and the development target before2016. As well, it also puts forward the target for diversified investment, financing, main business income and profit in the period of2011to2015.Finally, combined with the actual condition of Water Group, the article provides the solutions to realize the targets, which are to continue to strive for the financial and policy support from the Nannning government and to adjust and improve the governance structure, organization structure, finance resources, human resources and corporate culture of the Water Group. It shall define the functional division of each unit and organize expert-oriented board of directors in the improvement of governance structure. In the adjustment of organization structure, it shall set up experts committee by employing specialist experts, organize the information center and dynamic crew by the need of the project. Regarding human resources, it shall establish a complete set of management system including HR planning, employment, vocational education and training, salary and promting、working efficiency appraisal and vocational development of stuff,etc. It shall improve the budget control and strengthen the financial supervision with regard to the management of finance resources. And establishing the culture of learning-oriented and share in knowledge is the core of the culture construction of the Water Group.