Study On The Development Strategy Of Huating Coal Group Specialty: Business Administration

Huating Coal Group co. ltd (HCG), authorized by the People’s Government of GansuProvince, was established as a big-sized state-owned coal enterprise on24, April,2002, andtaken into China Huaneng Group Company in July,2006; after share transfer, HCG, Gansuprovince, and Pingliang municipal government hold respectively49%,41%, and10%of itsshares. After10years of reform and development, in the company has already been formed adiversified coal-dominated multi-industrial pattern with coal-generated electricitytransmission and constructive material as the core, with machinery manufacturing, rubberproducts, real estate development, and medical service as the supplement. In order to ensurethe company’s sustainable development under increasingly fierce market competition, itseems particularly critical to probe into and draw up future development strategy for thecompany.Based on the literature related both home and abroad, using strategy theory and method,the paper analyzes the macro environment in which the company is situated from aspects ofpolitics and law, economy, social culture, technique and the like, the industrial environmentfrom aspects of position and features of coal industry, coal market, competition among coalindustries and the like, and resources owned and capability obtained by the company fromaspects of its visible and invisible assets, and raises chances and threats faced with andadvantages and disadvantages. Then, on the basis of all of this, the paper, through SWOTanalysis, makes clear the strategic positioning of the company, and raises its strategic target inthe coming8years, strategic focus and key task. Lastly, the paper puts forth, from aspectssuch as coal resources, capital management, human resources, enterprise culture, mechanismand system, and technical innovation, the safeguard measures of the company to implementits strategy.The paper draws a blueprint for the development of the company in the next8years,which is of important guiding value for it to realize its sustainable development, meanwhilecertain help and use for reference to other enterprises of the same industry.