Developmental Strategy On Rural Credit Cooperatives Of Shandan County: Under China’s New Normal

After a period of fast growing, Chinese economy has gradually reached a new period, called the new normal, featuring as medium speed, optional structure, new stimulation and multiple challenges. What in parallel is the new normal for the banking, indicating a slower growth in the scale, structural downturn in financing demand, increase in the debt cost, on-going challenge of the profitability, remarkable credit risks in certain regions and industries. Owning to the era background and regional characteristics, Rural Credit Cooperatives of Shandan County(RCCSC) is on the threshold of re-positioning its developmental strategy. According to the strategic management theories, corporate strategy is one of the determinants in successful market competition, as well as the beacon for realizing its mission, vision and developmental goals. In addition, corporate strategy benefits to the risk management. Therefore, it contributes to the corporate in realizing its long-term goals.Based on the theories and tools of strategic management, and practical experiences of cooperative finance and rural credit cooperatives, this dissertation analyzes the problems and challenges that RCCSC faces under the new normal. On the ground of the analysis, a new developmental strategy for RCCSC is come up with and strategic pathways are constructed. Besides, the procedures of launching the new strategy and feedback after the launch are also introduced.The dissertation is composed of five sections. Firstly, it explains the necessity of strategic research for RCCSC by introducing the background, including the features and the new normal, and the boom of internet finance and shadow banking. Secondly, literature review is conducted on the theories and practices of strategic management and cooperative finance, laying the theoretical and practical foundation of the dissertation. Thirdly, PEST and SWOT are employed in analyzing the general external environment(political and institutional, economic, technical and social environment) and industrial and competition environment. The challenges and threats are summarized accordingly. Then, in addition to the brief introduction to RCCSC, operational conditions, capability of new business expansion and risk management, human resources management are also analyzed. This leads to the summary of internal strengths and weaknesses of RCCSC. Finally, developmental strategy is constructed in accordance with the above mentioned analysis, including SO(growth strategy), WO(transformation strategy), ST(diversity strategy), WT(defense strategy).The dissertation has come up with a new developmental strategy for RCCSC under the new normal, which also shed light on the strategic management of financial market in rural Gansu province.