Research On Development Strategy Of J Iron & Steel Group

J Iron & Steel Group is a cross-trade group mainly dealing with steel, concurrently chemistry, hotel, real estate and trade. Presently, under the influence of government’s macro policy on steel industry, steel producers in China are confronted with arduous tasks, namely: adjust industrial structure, promote industrial restructure, reduce excess capacity, and manage environmental-friendly, so the survival conditions for steel industry are deteriorating. In addition, competition within this field is more intense, with steel price going down and profit decreasing annually, steel industry has stepped into the era of meager profit. As a member, J Iron & Steel Group has to unexceptionally face a tougher market and its management meets great challenges: profit rate for steel sales has decreased from 3.34% in 2011 to1.02% in 2013, down 2.32%. Taken the current conditions into consideration, it is essential for the J Iron & Steel Group to develop and implement development strategies, improve its core competiveness, and to achieve sustainable development. Using the main theories and methods of enterprise strategic management and enterprise development strategic research: PEST analysis, Porter five forces analysis model, SWOT analysis and so on, this thesis studies the development strategies of J Iron & Steel Group: First, it begins with the external environment of the Group, including macro,market and industrial conditions, so as to conclude chances and challenges for the Group; Second, it comes to the internal conditions: the thesis analyzes Group’s advantages and disadvantages, and with SWOT analysis, to provides basis for Group’s uses of opportunity, utilizing its strength, avoidance of its weakness and threat, and for the development of an appropriate and feasible development strategies that meet with its real situations; Finally, oriented from Group mission, vision and goals, the thesis points out development strategies for the Group’s steel industry and non-steel industries; it also provides measures to ensure the smooth implementation of those strategies. Setting out development strategy rightly is key to business success; therefore this thesis aims to provide some help for Group’s development strategies making and certain reference value for future development.