Influence of external environment on China iron and steel enterprises

External environment of large group enterprises

I. Policy trends

The government's economic policy is an important factor for enterprises in any country at any time, including those in Europe and America with high degree of marketization. This is particularly strengthened after the outbreak of the economic crisis-all countries have launched economic revitalization plans, often accompanied by tens of millions of capital injections.

Our government has launched a package of 4 trillion plans. In addition, local governments and enterprises have also invested funds to support this 4 trillion investment. Experts estimate that the total amount will exceed 10 trillion. Then, textile industry revitalization planning, electronics industry revitalization planning, steel industry revitalization planning, automobile industry revitalization planning, real estate revitalization planning, logistics industry revitalization planning have been introduced. As a result, various ministries and commissions, local governments and some large industries and institutions began to take active actions to get a slice of the 4 trillion big cake. For example, the total investment in the planning and construction of new railways in China will reach 2 trillion yuan, and four major banks, including workers, peasants and China Construction, have participated in this cake battle. The Agricultural Bank of China promised to provide 500 billion yuan of intentional financing to the Ministry of Railways in the next three years. The Bank of China said that it would fully support the development of various undertakings of the Ministry of Railways.

In China's market economy system, the government always plays a decisive role, and sometimes it is not an exaggeration to call it the general director. Therefore, the direction of national policy has always been valued by enterprises in China, and a national policy can sometimes decide the life and death of a group of enterprises. For example, in 2003, in order to curb the blind development of the steel industry, the National Development and Reform Commission issued the "Notice on Several Provisions on Stopping the Blind Development of the Steel Industry", which curbed the overheating of steel investment from strengthening policy guidance, strict market access, strengthening land management, and improving bank credit. The industrial policy implemented by the state on the steel industry has led to important changes in the pattern of the steel industry, and some small steel enterprises are facing the fate of bankruptcy or merger.

Therefore, for a group enterprise, due to its huge scale, it is difficult to transform. If we follow the development of the policy, it will be like a ship sailing with the wind. If it conflicts with the national industrial policy, it is like a ship sailing against the wind, waiting for it only to stagnate or be swallowed up.

Second, the industrial structure

When the strength is weak, group enterprises tend to seek a higher and more important position in the established industrial structure than the existing position. When you are a group, are you the one waiting for others to break the game and bear the impact, or the one who is ambitious and ready to break the game, depending on what? Development trends, policy adjustments, new technologies, the entry of foreign households, changes in supply and demand, and changes in customer demand will all be passive, and changes in industrial structure will inevitably bring different degrees of impact to enterprises in this industry. For example, due to market share and brand reasons, China's automobile industry is positioned as a "3+6" pattern. They are FAW, Dongfeng and Shanghai, plus Guangzhou Honda, Chongqing Changan, Anhui Chery, Shenyang Brilliance, Nanjing Fiat and Zhejiang Geely. The founder of this new model is the Automobile Manufacturers Association. For many existing car manufacturers, the prospects will not be too optimistic. However, once this industrial structure tends to be stable, these auto companies can try to find a new position.

For diversified group enterprises, the industrial pattern affects the allocation of resources; For specialized group enterprises, it is the living environment and development speed.

Third, technology trends.

Science and technology is usually called the primary productive force, which plays an important role in promoting economic development. For enterprises in some fields (such as IT and information industry), only by constantly mastering the latest technology can they be in an invincible position. Huawei is a typical example.

According to the data of Dell Oro Group, a research company in the network and telecommunications industry, in the fourth quarter of 2008, Huawei's market share rose to 12%, while Alcatel-Lucent, the third-ranked equipment manufacturer, dropped from 16% to 14%. The North American market, where Huawei was forbidden to enter, also began to loosen. Not long ago, Huawei was selected by American telecom operator Cox Communications to provide it with an end-to-end CDMA mobile network solution. For Huawei, this is a milestone event. No wonder Xu Zhijun, vice president of Huawei, bluntly said that Huawei's performance in the North American market in 2009 will surpass that in 2008. According to the annual report just released by Huawei, Huawei's global sales revenue reached $654.38+0.833 billion in 2008, a year-on-year increase of 42.7%, which also exceeded the previous sales revenue forecast of $654.38+0.7 billion. The net profit reached11.50 billion, a year-on-year increase of 20%. 40% growth is basically in line with Huawei's growth rhythm, but if we compare the annual performance of other giants in the industry, we can know that Huawei is proud of its spring breeze: in 2008, Ericsson's net income dropped by 40%, Nokia Siemens lost 300 million euros, and Alcatel-Lucent, Motorola and Nortel lost more. Among the top giants, only Huawei stands out. Huawei enjoys rapid growth amid other people's worries.

The development and maturity of information technology not only gave birth to a new industry, but also had a far-reaching impact on other enterprises. Therefore, enterprises should enhance their awareness of technological progress and fully understand the importance of technological progress in creating economic benefits and improving competitiveness.

Fourth, the industry competition structure.

Competition is the eternal theme of economy and society. In the market economy environment, competition is a Damocles sword that enterprises will always sacrifice in their hearts. According to M.E.Porter, the competition of an industry is not only among the original competitors, but also has five basic competitive forces: potential new entrants, competition of substitutes, bargaining power of buyers, bargaining power of suppliers and competition among existing competitors. The situation and comprehensive strength of these five basic competitive forces determine the competitive pattern of the industry.

For potential new entrants to the industry, such as the telecommunications industry, the biggest risk in 2009 is that customers are losing to non-traditional telecom operators who have just entered the market. Non-traditional participants such as Internet companies, cable TV operators and equipment manufacturers are trying to win the customer base of traditional telecom operators, who are potential new entrants to the industry.

The competition of substitutes, for example, the original competition in the oil industry focused on the possession of resources, and now there is competition of substitutes for producing biofuels from grain, which has an important impact on the oil industry.

Buyer's bargaining power, represented by American ADM, American Bunky, American Cargill, and French Louis Dreyfus, the four multinational grain merchants have gained pricing power through the management and control of grain sources, warehousing, transportation, processing and sales, and extended the advantages of mastering grain sources to the fields of processing and sales, thus increasing their control over the whole market.

The bargaining power of suppliers, for example, in 2008, China iron and steel enterprises lost the right to speak with Australian iron ore and had to accept the fact that the price of iron ore increased.

Competition among existing competitors, such as China's home appliance industry, is a fully competitive field. Whoever can reduce the cost will win. Particularly prominent are air conditioners and color TVs. After overcapacity, vicious competition among enterprises is caused, price wars continue, and corporate profits continue to decline.

The structure of industry competition has the most direct influence on enterprises. The economic characteristics, competitive environment and its changing trend of an industry often determine its future profit prospects. For those unattractive industries, it is difficult for the best companies to make satisfactory profits. On the contrary, in attractive industries, weak companies can also achieve good business performance. As an enterprise in a specific industry, we must always pay attention to the present situation and changing trend of the industry competition pattern, and formulate the industry field and enterprise development strategy that the enterprise intends to engage in accordingly. At the same time, enterprises must also make corresponding strategic adjustments in a timely and appropriate manner according to the situation of industry competition pattern.

Verb (abbreviation for verb) customer and consumer

Customer first has become a generally accepted concept of enterprises in this era. There is no enterprise without customers, which shows the importance of customers to enterprises. Therefore, customers and consumers are a very important factor in the external influence environment of enterprise management. This is well known and will not be repeated here.

Sixth, competitors.

The influence of competitors on enterprises is also obvious, which can even determine the life and death of an enterprise. For example, when PepsiCo was first established, it faced strong competitive pressure from Coca-Cola. In order to survive under such strong competitive pressure, Pepsi-Cola has to find another way to position its market in the younger generation and distinguish it from Coca-Cola. For competitors, we need to see dialectically that industries without competitors are almost non-existent. Therefore, the relationship between most enterprises and competitors is a competitive strategy. It is conceivable that Pepsi could not be as powerful as it is today without Coca-Cola, a powerful competitor.

Seven. supplier

The development of enterprises is also inseparable from suppliers. Without suppliers to provide raw materials, enterprises cannot produce products. The quality of suppliers determines the competitiveness of enterprises to a certain extent. The reason why Wal-Mart can keep "everyday parity" to attract customers is inseparable from the support of its many suppliers. If the price of products provided by suppliers is high, it is impossible for Wal-Mart to maintain "daily parity" by reducing internal costs. It can be seen that suppliers are inseparable strategic partners in the process of enterprise development. At the same time, suppliers also restrict the development of enterprises to a great extent. For example, due to the deadlock between China's iron and steel enterprises and the three international iron ore giants, the cost of China's iron and steel enterprises soared, resulting in losses for the whole industry.

Eight. capital market

Capital market is also very important for large group enterprises. For example, the country lowered the benchmark interest rate for deposits and loans and the deposit reserve ratio for many times, which stimulated the recovery of the real estate industry and brought opportunities for the development of real estate group enterprises. However, the current financial crisis has had a direct and indirect impact on most industries, such as real estate, finance, Internet and so on, which are highly dependent on the capital market.

Nine. laws and regulations

The influence of laws and regulations on enterprises is also a typical example recently, that is, the promulgation of the new labor contract law has a great influence on enterprises and individuals. This is a law that concerns the vital interests of all employers and workers in the country, regulates the distribution of interests of all employers and workers, and has a gradual impact on labor contract management, recruitment management, overtime management, resignation management, employee relationship management, and labor cost control. The introduction of the new labor law has greatly increased the cost of labor, many enterprises and private enterprises have closed down, and more than 8,000 enterprises in the Pearl River Delta have closed down or moved.

These nine external environmental factors affect the development of group enterprises, but rarely change at the same time, and group enterprises do not have to consider all of them. For different industries, the key factors are different, so group enterprises should consider comprehensively and handle the current and long-term relationship well.

Under the background of the sudden outbreak of economic crisis and its wide influence, group enterprises should clearly understand the situation and calmly deal with it. The response is conditional. The captain should have enough experience and wisdom to judge the influence of wind direction, wind speed, waves, undercurrents and eddies on the ship, and be familiar with the firmness, flexibility and power system of the ship as well as his own body. Finally, and most importantly, he should make a choice after comprehensively considering all factors-in what direction, at what angle and at what speed the ship should rush out of the encirclement of the storm. According to the research data, although Titanic made a series of fatal mistakes, if the Titanic faced the strongest bow instead of the weakest side when the iceberg hit, the loss would be much smaller. When the Titanic found the iceberg, she had time to adjust the ship's direction-although this time was short.

Opportunities are fleeting.

Group enterprises should plan strategic layout, re-examine business structure, re-examine organizational structure and operational efficiency, re-examine product structure and market structure, that is, to understand the internal management factors that affect enterprises.