A Study Of Strategic Transformation Of Shandong Luhua Group On Hotel Industry

The strategic transformation refers to the enterprises changing the direction of strategic development to adapt to the changes in development environment, and the process that the enterprises reconstructs competitive advantages and promoting value creativity to achieve new business form. Shandong Luhua Energy Group Corporation which grew out of Shandong Huaneng Industrial and Trade Company invested by China Huaneng Group was put under administration of Shandong Provincial Government since the Central Government implemented the policy of "separation of main and auxiliary business" in 2004. After being disengaged from the main industry of electric power, the group has gradually developed into a comprehensive enterprise group focusing on the business of hotel, real estate, bio-pharmacy, pawn, and investment, with mutual development of project management, logistics, and trading. Following the changes in market environment and development of the group itself, the original wind business was halted as it unmatched development of the group; meanwhile, the single operation as well as the low scale and benefit of the hotel industry are also not suitable for the situation that the hotel industry being the biggest asset in the group, and the main business determined by the State-owned Assets Supervision and Administration Commission (SASAC) of Shandong Province. Therefore, the strategic transformation of hotel industry of the group was put on the agenda.Taking the strategic transformation of Shandong Luhua Group on hotel industry as the research object, the paper first sums up basic theories of enterprise strategic transformation, and analyzed the dynamic mechanism and modes of strategic transformation. Then makes systematic analysis of the business segments of the group utilizing the multi-business analysis, i.e. the Boston Matrix, suggesting that the future development of the group should aim at a national tourism enterprise group, and the hotel industry of the group should seek pan-regional expansion through the government leading and marketing operation as well as with the combination of real estate, thus makes the group growing up to a main operator influential to the Shandong provincial system of state-owned assets, the regional tourism market and hotel industry operation of Shandong Province; and at the same time, the medical and pawn industries of the group develop simultaneously. Combining with the analysis of the environment of provincial and national tourism as well as the SWOT (Superiority Weakness Opportunity Threats) analysis of the hotel industry of the group, and using the restructuring experiences and cases of hotel industry in other provinces, the paper concludes that the superiority and opportunity of the hotel industry restructuring of the group will overwhelm the weakness and threats. Finally, the paper proposes seven safeguard measures of management mode, capital operation, technical support, brand building, marketing management, human resource, and enterprise culture for implementing strategic transformation of the group on hotel industry.This paper creatively proposes the future development strategy for the hotel industry of Shandong Luhua Group in a brand-new perspective, which provides not only decision basis for the strategic transformation of the group, but also reference for the transformation and restructuring of other state-owned hotels.