Research On The Strategy Of Transformation And Upgrading Of Amateur Iron And Steel Group

With China’s rapid economic development, especially in the past10years from2000to2010, the steel industry, along with the construction of infrastructure, real estate and the industrial development led by the world’s factory, also experienced the glory years named that "pig" will fly. However, with the rapid increase of the iron and steel production, particularly in the past10years, the production has grown from more than100million to now more than700million, the steel industry is also gradually entering from the huge profits era into low-profit era, the iron and steel trade, as a service industry in steel and iron manufacturing enterprises, the era of making big money from traditional gambling market hoard goods has gone, the profitable model in iron and steel trade needs to be changed, or can only be eliminated. And in2009, the deformed steel bar futures, which is officially listed in Shanghai Futures Exchange, has brought about profound changes, meanwhile, ups and downs in iron and steel trade become not only increasingly motivated but more and more unpredictable. The influence caused by the financial market is greater to such commodities as iron and steel, the supply and demand fundamentals are no longer the only problem. With the decline of profit in iron and steel trade, the problem such as making equity trading through iron and steel trade and then invest in other profit industries which is previously hide behind the steel trading business or lending out money at an exorbitant rate of interest all erupt. In the second half in2012, even more worse, the situation of equity trading happens in repeated pledging irons to different banks and allying warehouses open fake warehouse receipts, which cause banking sector recover loans and block the entire industry to the steel trade business in emergency. This reality force the steel trading company must upgrade in transition, looking for a new strategic direction and profit model, as an active member in industry, Grand Group Corporation also need to face this problem, seeking the transformation and upgrading of the strategic choice.This paper consists of seven chapters. The first chapter outlines the background, theory and the practical significance, research methods. The second chapter describes the basic concepts of futures, hedging, arbitrage and introduces the theories of management strategy, transformation and upgrading strategy in order to establish the theoretical frame system. The third chapter analyses not only Grand Steel Division faces the development of political, economic, social and cultural, technical, environmental and legal exterior and macro environment, but also by the five-force model, product life cycle theory, value chain model and strategic group analysis tools, analysis of Grand Steel Division Industrial environment. The fourth chapter through to Grand Steel Division internal financial resources, human resources as tangible assets and brand reputation, industrial management experience, motivation mechanism, corporate culture as intangible resources capacity analysis, and by means of VRIO analysis, determine the core competitiveness of enterprises. The fifth chapter through the SWOT analysis, proposed in the Grand Steel Dvision can be chosen strategy, and puts forward the financial trading is the strategic choice for the enterprises.In the sixth chapter, five chapter analysis is proposed on the basis of the Grand Steel Division in the implementation of financial trading strategies in some aspects. The seventh chapter puts forward the further research direction of the two.The direction of the transformation and upgrading in the steel trade is in a large number, so the key lies in the fact that each company should make a choice based on its actual situation. Arbitrage trading in used quite often in other commodity industries, however, based on the short time coming out in steel industry, everyone has paid insufficient attention to it, and also fails to formally propose arbitrage transactions in the steel industry, so this is what the greatest practical significance in the whole passage. However, due to the implementation of our company and lack the enough details in elaboration, the conclusion will come along with later practice and refining.