Research On The Business Strategy Transformation Of NL Urban Investment Company

On September 21,2014,the State Council issued the Opinions of the State Council on Strengthening the Management of Local Government Debt([2014] No.43),which clearly requires that "the government financing functions of financing platform companies should be divested,and financing platform companies should not increase government debt",and restricts the financing guarantee of local governments at all levels to platform companies.The release of the Opinions indicates that the platform company needs to break away from the administrative financing function as soon as possible,cut off the core relationship with the local government.In particular,the Fourteenth Meeting of the Central Committee for the Comprehensive Deepening of Reform held on June 30,2020 deliberated and adopted the Three Year Action Plan for the Reform of State owned Enterprises(2020-2022).As a local government investment and financing platform,the strategic transformation of urban investment companies is imperative.Therefore,this paper takes NL Urban Investment Corporation as the research object,and the main research work is as follows:First,start with the analysis of the internal and external environment of NL Urban Investment Company,and analyze its strategic transformation positioning.The analysis is carried out from the four levels of politics,economy,society and technology,and the industrial environment faced by the company’s market-oriented business is analyzed using Porter’s Five Forces Model.Then from the company’s basic situation,business situation,financial resources,human resources,cultural situation five levels of comprehensive analysis.On the basis of internal and external environment analysis,SWOT analysis is used to find out the advantages and disadvantages,opportunities and threats of the company’s operation.It is found that NL Urban Investment Company is in the ST quadrant,so it should take a diversified strategy,make full use of its own advantages,and find more opportunities in the market.Secondly,according to the strategic transformation positioning of NL Urban Investment Company,the AHP-SPACE model is used to select the development strategy of NL Urban Investment Company in combination with the strategic transformation goal of NL Urban Investment Company.Through the field survey and data collection by the management of NL Urban Investment Company,NL Urban Investment Company is selected to transform its strategy into an aggressive strategy,that is,to actively adopt diversification,integration,new product development and market penetration strategies.Finally,according to the aggressive strategic choice of NL Urban Investment Company,the strategic plan for its implementation is formulated.It is necessary to define one main body,two handles,and an aggressive strategic plan for six business sectors.One of the main bodies is to establish a group company.The two handles are to inject high-quality resources into local governments and establish a modern enterprise system for companies.The six business sectors are urban construction and financing(including financing platforms),resource development and utilization,industrial investment,cultural tourism,agricultural industry Urban and rural water supply integration.On this basis,the paper puts forward the safeguard measures for the implementation of the enterprising strategic plan.Through the strategic transformation research of NL Urban Investment Company,the research results not only provide reference for NL Urban Investment Company’s strategic transformation planning and implementation,but also provide decision-making reference for relevant urban investment companies’ strategic transformation planning.