Research On YM Group’s Aluminum Industry Development Strategy

Since Chinese economic reform and opening up policies were launched in1970s, domestic aluminum industry has developed with a rapid speed and continued to expend the scale. Especially the industry made a great achievement during the11th and12th five-year plan. However, unadvanced technology leads to the research and development of sophisticated aluminum products did not come to the expectation, while the problem of importing high-grade products and exporting low-grade products was not fundamentally solved. This is the reason why YM Group joined and get involved in the development of aluminum industry. Due to the depression of coal industry, YM Group urgently needs to nurture a new economic growth point to handle the current management crisis.Under new situations and circumstances, the enterprise must adjust development method and launch a new strategy. Based on the field reasearch and investigation, the author uses casy study method and PEST tool to make a deep study on YM Group’s aluminum industry development. On one hand, through the research on the company’s macro environement, industry environment, competition environment, region environment, the author condiders that the company is qualified to develop aluminum industry, while it has to face to the fierce competition. On the other hand, the author makes a deeop analysis on YM Group’s inner environment such as reseource, HR and finance, and then clarify the advantages and disadvantages.On the basis of the aboved research, the author proposes a strategy which could statisfy the requirement of YM Group’s development, the strategy is called "Coal-Electricity-Aluminum" Intergration Strategy. Meanwhile, the author sets the relevant strategetic targets, complete the strategetic positioning and arrangement, and then makes a series of suggestions about how to implement the strategy, such as perfecting the management regulations, improving the organizational structure and optimizing the administration system. Finally, offering a risk control measures during the the strategy’s implementation.The author considers that, under the background that the government is encouraging the development of diversified ownership economy, the company may cooperate with private-owned enterprises to take advantage of their investment and advanced management concept. Through intergrating coal, electricity, aluminum and the relevant industries, the company could creat a complete "Coal-Electricity-Aluminum" industry chain to enchance its cost advantage and prevent risks. The research achievements is supposed to has important reference value for YM Group to generate its development strategies, and will has certain guide significance to the transformation and upgrading of aluminum industry.