(I) Collaborative Diversification Strategy Since COFCO changed from an import and export trader to an industrial development stage, the main industries it is currently engaged in are: food manufacturing, real estate, hotel industry, financial industry, insurance industry, bioenergy and so on. These businesses are all synergistic. For example, according to the strategic positioning of the company and the synergistic effect between businesses, the existing businesses of the company and related businesses of the group are evaluated and reviewed, and long-term growth momentum is obtained through internal growth and external expansion, and resources are integrated within the company. For example, in terms of edible oil, the market has occupied a dominant position, from independent Fulinmen to holding Lu Hua, and then to developing high-end mining, forming a series of brands and effectively forming brand segmentation; For example, the reorganization of Zhonggu has strengthened its advantages in the field of agricultural product circulation; Entering bioenergy not only makes use of its own advantages, but also has the support of the state for energy strategy, which has a huge development space; Using capital to enter insurance and real estate, through strong capital strength to carry out industrial integration, diversified investment and professional management, it has produced good synergy. For example, in the real estate industry, COFCO injected high-quality real estate development business into Shenbaoheng after the acquisition of Shenbaoheng; Using the existing land resources of Shenbaoheng, a production and processing base of grain, oil, food, packaging and other products will be set up in Baoan District by renting a factory or other appropriate forms, so as to develop Shenbaoheng into a listed company integrating logistics, warehousing, trade, procurement and real estate.
(II) Grouping Strategy Judging from the current management mode of the five major business groups and their subsidiaries of COFCO, the whole COFCO is implementing a group development strategy, that is, industrial integration through holding and acquisition, thus forming a value chain and supply chain with synergistic benefits. Of course, in the process of collectivization strategy, the group culture, core competitiveness and unified image of COFCO have not been effectively formed. Although its product brand and corporate brand have gained great popularity and reputation, the brand image of the group needs to be improved.
The vision of COFCO
"You can't put eggs in different baskets, but you should also emphasize the advantages of specialization." For the future development of COFCO, it is necessary to build core competitiveness other than COFCO capital, because COFCO, as a leading enterprise in the domestic grain and oil industry, is not competitive enough and its business development is not stable enough. There are few means of competition, and the focus of competition is mainly limited to production capacity and layout, but there is a lack of complete integration of supply chain management, talents, products, brands, technology, resources and other factors. The lack of core competitiveness such as profit model, supply chain competition, corporate governance and management system and corporate culture model may be the biggest hidden pain of COFCO at present.
With the further liberalization of the market and competition from abroad, COFCO should further develop its "combination boxing" and cultivate its own "core" in order to grow healthily in the increasingly international market structure. Implement industry focus, product focus and continuous innovation, and take the road of "industry integration" and "market diversification"; Cross-regional operation, reasonable concentration and dispersion of resources, upgrading and establishing management and control capabilities and systems, guiding internal human resources development, and pursuing stable return on investment; Standardized management, intensive integration, systematic process and standardized system ensure superior competitive position.
As Dong Huan said, the shaping of COFCO's core competence should be constrained, that is, based on the strategic positioning of the enterprise and by means of professional development, from the existing core resources of COFCO, such as brands, talents and market networks, the integration of enterprise knowledge base, innovation mechanism, management, culture, resources, technology and services should be promoted, and an independent R&D system, an effective management platform and a systematic corporate governance and control system should be established. It also needs extension, that is, taking core competitiveness as the goal, obtaining the core technology source needed by enterprises or the talents who master the core technology source through market means; Establish strategic alliances with enterprises with complementary advantages or acquire enterprises and groups with certain comparative advantages. The current merger and integration of COFCO and its possible internationalization in the future are just a means and process of outreach. Therefore, in this process, COFCO should be alert to all kinds of crises and great risks brought by outreach. Only with strong integration ability, error correction ability and balance ability can we ensure the success of outreach.