Research On The Development Strategy Of Shenhua Shendong Coal Group Corporation

Shenhua Shendong Coal Group Co.,Ltd.is one of the wholly-owned subsidiaries and the key coal production enterprise of Shenhua Group Co.,Ltd.,located at the bordering area of Shaanxi Province,Shanxi Province,and Inner Mongolia Autonomous Region.It was established on May 20th,2009 after the merger of the four companies in Shendong Mining Area.It has 17 coal mines all together,with 3 mines reaching 20mtpa,2 reaching 15mtpa,5 reaching 1Omtpa,and the others below 10 mtpa.10 mines are named "National Super-level mine with high productivity and high efficiency" by China National Coal Association.In 2005,it became the first coal production base in China with the total production capacity of over 100mtpa.By 2009,its annual raw coal output had kept over 100 million tons,for 5 consecutive years,the annual commercial coal output had kept over 100 million tons for 4 consecutive years,and the longwall mining output had kept over 100 million tons for 3 consecutive years.In terms of safety,technology and financial performances,it is the best in China and takes the lead in the world.Shenhua Shendong Coal Group is growing up with the development of China's policy of reform and opening-up.It is located in the western part of China,far away from the ports,so the cost of transport is high;it is also far away from the urban lifestyle with a poor living environment,so it is of small attraction to the talents.Meanwhile,the severe domestic safety situation has a strong influence on the development of Shendong.Affected by the traditional coal mine operation,the management is still a short board for Shendong.In addition,the rise of coal price and the pressure from the competition of international market also cause unfavorable factors to the development of Shendong.In spite of those unfavorable factors,relying on the unique integration of mine,power,railway and port,and the streamline of production,transportation and sales in Shenhua Group,adhering to the "Five High"construction principle featuring "high starting point,high technology,high quality,high efficiency and high return",Shendong has built up a 10-million-ton coal mine group and created a new intensive coal production model featuring "Four Models",namely,"large-scale production,technology modernization,team professionalization and management informatization" through technological and management innovation.Under the unified plan of Shenhua Group,Shendong has tried to build itself an enterprise featuring "Five Characteristics,including "Intrinsic Safety,Quality and Efficiency,Technological Innovation,Resource Conservation and Harmonious Development",and it has achieved three transformations in the production practice,from the labor-intensive to the technology-intensive,from high danger to intrinsic safety and from environmental pollution to environment protection.It has solved the two contradictions existed in the traditional coal industry of high production with safety as well as coal mining with environment protection.It has established the common vision of "striving to lead the global coal industry" and the strategic goal of building a grand Shendong featuring "Four Models" and "Five Characteristics".In this paper,based on the environment,status and characteristics of the development of China's coal industry,the writer makes a general judgment on the development of China's coal enterprises and analyzes the influence of the external environment to the formation and implementation of Shendong's development strategy.With resources,capacity,SWOT analysis and other methods of analysis,the writer analyzes the internal factors which can be controlled by Shendong and play a decisive role in the formation and practice of Shendong's development strategy.The paper explains the position and the content of the development strategy of an enterprise.Around some specific practices and preliminary results in Shendong Coal Group's strategic implementation,the paper also analyzes the inspirations to China's coal industry.