The Research On Refocusing Strategy Of Shandong Hi-Speed Group

The growth of a company is closely related to the strategy of the company.A suitable strategy is able to help a company become small to large and from large to strong.As the economy and society are developing in a rapid pace,the competition between companies is becoming increasingly drastic.Therefore,it is significant to choose a right strategy if the company is willing to stay undefeated.In about 20 years,Shandong Hi-Speed Group(for short "SDHS")has been developed to a cross-industry state-owned group from a simply freeway-operated company,and the asset size grow from 6 billion Yuan to 700 billion Yuan.SDHS has achieved leapfrog development through keeping exploring and innovating,as well as implementing diversification strategy.In recent years,although the scale of SDHS is keeping expanding,it faces some problems such as step into too many different industries and excessive dispersion of internal resources,which lead to lack of core competitiveness.Hence,it is necessary for SDHS to do reform and innovation,which needs to give up the diversification strategy and explore a proper refocusing strategy.Through implementing refocusing strategy,it is able to gather resources and improve the core competitiveness,which will make SDHS from a large group to a strong group.In this paper,it firstly analyses the theory of enterprise strategy and refocusing strategy.Then,it analyses the external environment of SDHS by using PEST and Michael Porter’s Five Forces model,and also analyses the influence of the development of freeway industry to SDHS.Next,it analyses the internal resource and ability of SDHS in order to find out its merits and shortages.Then the paper analyses the advantages,disadvantages,opportunities and threats by using SWOT analysis,and also analyses the plan of selection and construction of refocusing strategy.Last but not the least,the paper comes up with the implementation and safeguard measure of refocusing strategy of SGHS in order to guarantee the refocusing strategy can be smoothly implemented.It is believed that choosing refocusing strategy is necessary to make SDHS become stronger,which also should adjust the structure of business,return to main business in order to improve the core competitiveness.First of all,SDHS should make sure that the transportation business increase steadily,and constantly increase the investment on transportation infrastructure,which need to build,operate and manage longer distance freeway.Then SDHS should make full use of its transportation infrastructure to develop logistic industry,and take the advantage of toll stations and service center,which is able to make connection and combination with logistic park.Thirdly,SDHS is supposed to develop the land related to transportation infrastructure and construct distinctive and comprehensive service center,make the best use of those lands.Last but not the least,SDHS should use financial tools efficiently and keep developing the finance sector to make sure the capital chain is steady.