Suzhou Institute Of Strategic Research And Development Thermal Limited

An unexpected accident of Fukushima Nuclear Power Station put a sudden brake on the fast-developing nuclear industry in China. Before the release of a new nuclear regulation, there lay many uncertainties as to the future of nuclear industry in China. Under such a circumstance, Suzhou Nuclear Power Institute (SNPI) has to make according adjustments to the development strategies."The Research Center of National Nuclear Power Service Life Evaluation and Management", affiliated to the Energy Bureau under the National Development and Reform Commission, along with "the Research Center of Nuclear Power Security and Reliable Engineering" under the Ministry of Science and Technology, were set up in SNPI, which would provide important strategic resources for the institute. At the beginning of the year, Guangdong Nuclear Power Group, the supervisory body of SNPI, positioned SNPI as the only service provider for its parent company. The new positioning gave SNPI a great impetus to develop newer business scope. Thus, the strategic positioning of SNPI environment, objectives and resources has changed dramatically. It is of vital importance to SNPI as to how to make appropriate strategies and how to maintain a sustainable development.After adopting PEST analysis and Michael Porter’s Five Competitive Forces model to analyzing the macroeconomic environment and competition environment SNPI faces, the paper argues that in spite of the pessimism and suspicions toward nuclear power brought forth by Fukushima accident, SNPI is still in a positive and promising development trend. The paper analyzes the main business scope of SNPI, and concludes nuclear power and traditional thermoelectricity face different opportunities and challenges. Secondly, the paper analyzes the interior environment of SNPI. Thirdly, after the supervisory body raises new expectations for SNPI, the paper points out how SNPI could accommodate different group interests and achieve multilateral win-win situations. Namely, first, the SNPI management style has to be transformed from a synergy manager to a talents-cultivating manager. Balancing thermoelectricity and nuclear power is not only one of the diversification strategies, but a good method to defend SNPI against all sorts of exterior risks and to maintain research independence. At last, the paper evaluates all the strategy mix how to consolidate the market position and its product development. In terms of thermoelectricity business, the paper argues that SNP should adopt a mixed strategy to penetrate into the market.With a view of a decelerating development of SNPI, the paper puts forth seven policy suggestions, including strengthening a functional structure to improve managerial abilities, adjusting payroll management, etc. The paper ends with a brief analysis of the environment, management and risks SNPI faces and at the same time, proposes solutions. The paper is of practical values toward the management of SNPI, also of referential values to an electricity industry in China.