SZ Company Strategic Transformation Research

Municipal construction enterprise always commitment to responsibility of constructing public infrastructure, such as urban roads, bridges, water conservancy and so on, which were invested by government. Since China gradually established and perfected the socialist market economy system, all aspects of the living environment of municipal construction enterprises had tremendous changes. In the face of market changes, municipal enterprises only formulate strategy, which is adapting to the environment and in line with its own resources, they could survive and development in the fierce market competition. This paper took SZ Company as an example to research strategic transformation of the collective Municipal construction enterprise. In order to provide suggestion for the enterprises to achieve successful strategic transformation, we improve comprehensiveness, scientificalness and operability of strategic transformation decision-making, through the systematic analysis of external environment, internal conditions and the strategic choice of the enterprise.Through analyzing the external environment, internal conditions, this paper argued that the SZ Company should choose the growth-type strategy, only chose growth-type strategy, enterprise could achieve development goals, and solve the problem that existing in the development to achieve shaping the core competitiveness of enterprise. For the growth-type strategy, this paper has developed two specific programs, The one was the vertical integration, SZ should extend to the upstream and downstream of construction industry chain, and improve the design, investment,construction, operation ability and comprehensive competitiveness; the other one was related diversification, the enterprise should use available resources to extend to other industries which was related to construction, it can achieve synergistic effect, reduce financial risk and increase profit margins. In order to achieve strategic transformation, the enterprise must have the safeguard measures in five aspects, The first one is the change of the management system, the second one is to promote enterprise qualification, the third one is optimizing the organization structure, the forth one is improving the incentive system, the fifth one is strengthening the management of production.