Research On Development Strategy Of A Province Railway Construction Investment Company

In the year of 2008,in order to speed up national railway construction and solve the problem of inadequate supply,the Ministry of Railways,which is now called China Railway Corporation,signed relevant documents with many provinces.On this occasion,A province formulated a plan of the railway network construction and founded A Province Railway Construction Investment Company.The company undertakes responsibility for provincial capital contribution to participate in railway construction in A province.After nearly a decade,it possesses rich investment experience and big advantages through taking part in the construction and investment of 10 railway projects.But the characteristic of railway projects are large funds demand and long payback period.Besides,the firm is just engaged in a single railway investment business and has no operational income.And all the revenue is formed of tax preference.If the situation is not changed,it will not obtain long-term development.According to Strong Transportation Strategies and the latest railway network plan of A province,there will be invested in over ?500 billion to construct the high-speed rail.The company will undertake over ?100 billion among that funds.Funding pressures are so huge that the company has faced the biggest challenge since it was founded.So the company must make full use of the external opportunities and discover its advantages and disadvantages to formulate suitable development strategies as soon as possible.The paper fills the gap of research on development strategy of A Province Railway Construction Investment Company and provides case reference for other similar companies.Firstly,the thesis summarizes connotations of strategic management,the development of strategic management theory and the tools of strategic analysis through reviewing some classic literature.Also,it reviews other literature,including research on development strategy of state-owned investment companies and railway companies,which is closely related to research object.And,it determines research method and idea,frame diagram and innovation point.Secondly,the dissertation analyzes external environment that the company confronts.PEST analysis is used to study macro-environment that influences strategy formulation.At the same time,the combination of Michael Porter's Five Forces Model and the study of other railway investment companies all over the country contribute to industry environment analysis.Then both opportunities and threats that influence the development of company are summed up.Thirdly,the paper analyzes internal environment that the company confronts,including company profile,system present situation,organizational structure,railway investment situation,financing and resources.And strengths and weaknesses are summarized from the aspects of background,strategic investment,culture,human resources,planning and finance,business,auditing and law works and information construction.In the end,the graduation thesis comes up with vision and value of the firm and determines the train of thought by using SWOT model.Furthermore,the paper puts forward growth strategies for strengthening main business and achieving economies of scale and diversification strategies for building industry chain and improving profitability.Additionally,the strategies mentioned above are implemented in three phases to achieve strategic targets.What's more,some measures,including organizational system,resource integration,human resources,financial management,coordination with city planning,risk prevention and control,industry cooperation and culture,are adopted.