The Research On Developing Strategy Of Liuguo Chemical Company

Starting from 2012,China's phosphate & compound fertilizer industry has entered into the era of severely excess capacity,with fierce market competition and low product prices.The pace of plant closures,mergers and reorganizations has been accelerated.Especially from 2017,the pressure from environmental protection and the constraints from key costs for the industrial development have become increasingly prominent.Anhui Liuguo Chemical Co.,Ltd.,which mainly produces phosphate& compound fertilizers,faces the urgent demand for sustainable development.The main products of the company include diammonium phosphate,monoammonium phosphate and compound fertilizers.Its industrial structure and products structure are undiversified,facing severe situation of serious products homogenization and fierce market competition,bringing significant profitability decreases.To study and formulate the company's development strategy has great significance for accelerating the establishment of its new industrial system and guiding itself to the right development direction.This paper mainly adopts the method of integrating qualitative and quantitative analysis.Combining with classical strategic management theories and referring to the logic and ideas of searching for,analyzing and then solving the problem,it firstly employs PEST and Porter's five forces model to analyze the macro environment,industrial competition environment,putting forward the opportunities and threats facing by the company.Then,the advantages and disadvantages of the company are found out through the analysis of internal resources and capabilities.And then,with SWOT matrix analysis,the company's strengths and weaknesses are correspondingly matched with the opportunities and threats in the external environment,formulating the company's retrenchment strategy.Finally,based on the actual situation of the company,support measures for strategy implementation are formulated from the following five aspects: asset disposal,R&D and production,organizational structure adjustment,human resource management,financial control and capital operation.