Research On Strategic Transformation Of MD Group

MD Group is a private enterprise which mainly produces white household electrical appliances. Under the reform and opening-up policy, it was from North Street Plastic Produce Group to be listed at Shen Zhen Stock Exchange in1993and became the first company on the market that was organized by a township enterprise, after that it had edged herself into one hundred billion conglomerates’ club in2010. It faced the intense competition in its main business and the constant changing of market condition, specially since the2008Financial crisis was broke out,it faced inflation, exchange rate reform, rising labor costs,and it was suffering criticism of quality and after sale-service in the market and exposed the short slaps of the company deeply. So the Strategy Transformation was bought up. However in the beginning of the strategy transformation,firm could not achieve the goals successfully, the income of the three main businesses declined a lot, funds collecting and the construction projects could not achieve either, and it was in debt about4o million. To compare with the beginning it increased16.02%, the strategy transformation was not smooth.In this study, to combine some theories of strategy, we investigated the process of strategy transformation emphatically, according to the example of the strategy transformation of MD Group,from the background of the strategy transformation of MD Group,and to use PEST and to combine the internal and external environment analysis to analyze it,and to use SWOT to analyze the uncertainty of strategic and to recognize decision-making to the strategic direction of the transformation, and the choice of the strategy transformation, the system of supporting the strategic transformation and the monitor of strategy transformation we had this study. For standing the strategy altitude and the angle of practicing we combined the example of the strategy transformation of MD Group during the dissertation and tried to study the model and artifice.The strategy transformation of a firm is a complex system project; it should not be accomplished in an action. It hides big risks and high investment; it will be a disaster if it is failed. It includes entrepreneurship, the assurance of Transition time, the understanding of the strategic transformation principle, and the monitor of the strategic transformation process and abilities of organizational transformation. The value of this study is through a case study of typical of private enterprises to implement strategic transformation to find key factor of Affecting the success or failure of the enterprise strategic transformation and to analyze the importance of the of these influencing factors, then present its strategic transformation tactic. The study proved that under the complicated and changing and an increasingly perilous market situation, manufacturing enterprises must back to basic level enterprise. If you want to built a customer-oriented agile organization and make your business longevity,you must use the transformation path of reinforcing self-construction, around the three main strategic management--roduct leadership efficiency driven global business, focusing on industry, bettering products, carrying out the operation simplification, lifting efficiency, managing market well. The Initial success of strategy transformation of MD Group offered the experience reference and inspiration for itself and other firms which want to implement a strategy transformation; it also can direct the next step development strategy transformation.