Research On The Implementation Effect Of COFCO's Whole Industry Chain Strategy

In recent years, food safety issues have been under the spotlight. Following the outbreak of Sanlu Milk Powder Scandal in 2008, the Big-headed Children, Shuanghui Clenbuterol, Swill-cooked Dirty Oil, Mengniu Milk Event and so on, have aroused the special attention to the food market. In order to control the food safety issues,and to achieve the double harvest of good reputation and profit, COFCO Chairman Ning Gaoning took the first in proposing" all industry chain" development mode,trying to make sure that from the pastoral to sell, each channel are under the full control, and to ensure reliable quality And security. It is an innovative business development model. So far, the use of the whole industry chain and involved in film and television, medicine, e-commerce, the Internet and many other areas. The business model of the whole industry chain has gradually begun to popularize in our country, though the development time is short after all, and the theoretical system is not mature,so there are still few researches completely targeted on the "whole industry chain" model research.In regard to this, this article selected COFCO, the founder of the whole industry chain as an example, illustrating the effectiveness of the whole industry chain on enterprises through the comparison and analysis of financial performance. First of all,before the case study begin, I collected a large number of industrial chain, industrial chain integration and the whole industry chain and financial performance related literature researches and theoretical reviews; and then through the analysis on the"whole industry chain" on the financial performance of enterprise, the path has got.Then I used PEST analysis and SWOT analysis to analyzes the motivations and effects of the "whole industry chain". After that, we choose three representative subsidiaries of COFCO, and through the comparative analysis The financial performance indicators before and after the implementation of the whole industry chain strategy, I concluded that COFCO full industry chain strategy implementation effect is not ideal. At the same time,the comparative analysis is used to compare the financial performance of COFCO with one of the four grain merchants, further proving the shortcomings and problems of the COFCO industry chain's strategic layout and hoped that COFCO can clarify the actual situation of the enterprise, and learn a lesson from Bunge,and promote the development of the enterprise better and faster. After the case analysis, I conclude the reasons why the financial performance is not ideal for the whole industry chain, and put forward the corresponding improvement measures in order to help COFCO out of financial difficulties and improve corporate financial performance. And I hope that other enterprises to implement the whole industry chain strategy has a certain reference all the same.