A Study On The Business Adjustment And Improvement Of The Nanning Chemical Group

The Nanning Chemical Group is a large state-owned enterprise in the industry of chlorine and alkali production. Its main business is to produce and sell the chlorine and alkali. It also engages in importing and exporting the raw materials and other trade-related business. After the financial crisis in2008, companies in this industry experienced a difficult period nationwide. With more and more competitors springing up, overcapacity resulted in the price plunge in some traditional chlorine-alkali chemical products such as caustic soda and polyvinyl chloride. Because of its special manufacturing technique, many companies including the Nanning Chemical Group cannot stop production even when faced with great losses.By applying GE Matrix and BCG Matrix, the thesis is to analyze the main business and it s industrial competitiveness of the Nanning Chemical Group. The thesis also points out that th e primary cause of the corporate losses lies in the high costs which reduces the profits. And th e unbalanced product structure weakens its competitive edge. And the group does not make ad justment to its business based on the changes in the market.To further explain the problems above, the thesis will apply the value chain analysis to improve the logistic costs of the group’s main business. It will also make adjustment to the group in line with the requirements of the BCG matrix. After the adjustment and improvement, the group can reduce the logistic costs. It will lower the total cost of the products, enhancing the corporate competitiveness and the product structure.