Research On Capital Operation Strategy Of Tangshan Iron&Steel Group

As an important functional enterprise strategy, capital operation strategy plays a very important supporting role for enterprise overall strategy. It has a great impact on the realization of the enterprise strategic target whether the design, choice and implementation of capital operation strategy are proper or not.The financial crisis in2008was an important watershed in the development of Chinese steel industry. From then on, Chinese steel industry has terminated the period of high-speed growth, and faced long-term downturn. In this case, a majority of the iron and steel enterprises have adjusted or formulated their development strategy in order to achieve transformation and sustainable development of the enterprise.Tangshan Iron and Steel Group is one of the large scale iron and steel enterprise in China. On the background of economic crisis in2010, it put forward the vision of "To build the most competitive steel enterprise", and formulated the development strategy of "to make steel industry strong, and non-steel industry large, to diversify moderately, and innovate continuously". This paper has first analyzed the deficiency of capital operation of Tangshan Iron and Steel Group in the developing history and present situation; and then analyzed the external macro environment of capital operation by the PEST analysis method, and analyzed the competition environment of steel industry by Porter five forces model. Through the above analysis of external environment, the business opportunities and threats of the external environment have been identified. Then on the basis of the advantages and disadvantages of enterprise and the opportunities and threats of external environment, the article has made a comprehensive analysis by the method of SWOT, and concluded four mode of capital operation strategy. Combined with the overall strategic target and development policy of Tangshan Iron and Steel Company, we choose and determine the most suitable strategy. At the end, we give some specific suggestion on the implementation and guarantee of capital operation strategy.Through study, this article can provide some suggestion for the company leadership when making relevant decisions and also for other iron and steel enterprises for conference.