Research on Development Strategy of Jinan Steel Company

Influenced by increasing deterioration of the global financial crisis, Chinese steel industry has already experienced a deep adjustment on price slump, decrease in output and increase in steel mill inventory. It is predicted that Chinese steel industry will go through a depression period for one to two years. Chinese steel enterprises will also be confronted with a climax of reshuffle and even bankruptcy. According to the current situations of Chinese steel industry, the government proposes that structural adjustment shall be given top priority, merger &restructuring, elimination of backward facilities and energy saving and emission reduction shall be focused on. Under this circumstance, this article puts forward the development strategy for Jinan Steel Company based on the analysis of external environment of the enterprise and its development conditions.With the background of current international financial crisis, and the application of enterprise strategic management theories, this article collects a great deal of first-hand production data through market investigation, makes analysis on the external environment and internal conditions of Jinan Steel Company, finds out the threats and opportunities through the analysis on external environment, locates the advantages and disadvantages through the analysis on internal conditions, makes SWOT analysis, and formulates the development strategy for the enterprise by avoiding the disadvantages and external threats. The core of the development strategy of Jinan Steel Company is the recycling economy development strategy. The content mainly includes:improving and innovating the process flow, adopting the distributed treatment technology, innovating the energy management mode, and realizing the value creation through the high-efficient regeneration of the wastes.The successful formulation and application of the development strategy for Jinan Steel Company can facilitate the rapid and good sustainable development of Jinan Steel Company.