Research On Performance Of Strategic Transformation Of Maanshan Iron&Steel Company Limited Under The Background Of Supply-Side Reform

The steel industry’s contribution to the national economic growth to be reckoned with.In the face of steel market competition intensifies,it is major to seek new profit growth point and increase market competitiveness.Maanshan Iron & Steel Company Limited shares as one history long iron and steel enterprises in China,but the economic benefit of the corporate was relatively early declined dramatically.Maanshan Iron &Steel Company Limited had promoted the improvement of enterprise operating results to some extent through the implementation of supply-side reform,though its long-term development ability was restricted.The strategic transformation of Maanshan Iron &Steel Company Limited is not only to adapt to the development of the industry,but also to enhance its own value and achieve sustainable development.In order to avoid the influence of market homogeneity on corporate profits,iron and steel enterprises should carry out strategic transformation to improve market competitiveness.First of all,this paper reviews domestic and foreign scholars’ research on supplyside reform,strategic transformation and enterprise performance.Secondly,this paper focuses on the concept definition of supply-side reform,strategic transformation and enterprise performance,collates and summarizes the basic content of stakeholder theory,strategic management theory and the application of related theories in this paper.Next,this paper selects Maanshan Iron & Steel Company Limited as the object of case analysis.Through case study,this paper sorts out the general situation of strategic transformation of Maanshan Iron & Steel Company Limited introduces the supply-side reform of the enterprise,then obtains the motivation of strategic transformation of the enterprise,lists and sorts out the measures of strategic transformation.Then,by sorting out the annual report data of Maanshan Iron & Steel Company Limited from 2017 to2021,the results of strategic transformation are analyzed from the perspective of financial index and non-financial index.From the perspective of financial performance,the traditional financial indicators of Maanshan Iron & Steel Company Limited are compared horizontally and vertically.And calculate the EVA value of the enterprise.EVA value is compared with traditional financial indicators to measure whether strategic transformation has an impact on shareholders’ wealth creation ability.In the non-financial index part,it analyzes the change of management benefit,research and development ability,market competitiveness and environmental performance of Maanshan Iron & Steel Company Limited.In this paper,the results of the study indicate that though it shows worse financial performance in the short term,economic performance has continued to improve.Although the strategic transformation effect of Maanshan Iron & Steel Company Limited is relatively remarkable,it brings problems such as declining solvency,weakened cost control ability and unstable profitability to the enterprise.In view of the problems above,this paper from the capital structure,r&d investment,and make proposals for optimization three aspects to strengthen enterprise strategic transformation results and improve the performance of the enterprise.