Business strategy of Hearst company

In recent years, due to the rising price of crude oil and the rising cost of raw materials, the company decided to reduce the production of bulk petrochemical products, adjust the layout, and move bulk products to foreign raw materials and suitable places for sale. The production of the whole company, especially in Germany, gradually turned to high value-added products with low energy consumption, low material consumption and technology-intensive. Its industrial structure and product structure have been greatly adjusted, and the direction of structural adjustment is to develop in the direction of high added value and strong medicine, pesticides, seeds and special coatings; General resins, synthetic fibers, general coatings, dye intermediates and cosmetics are compressed. The company systematically develops the business strength of the group through the strategic management process. As the two cornerstones of the Group's development, medicine and pesticides have been further strengthened, and life sciences-future-oriented health care and agriculture/nutrition departments will be the new resource concentration points. In order to be invincible,

Hearst often takes the following measures to adjust its business strategy and key areas to adapt to the changing situation.

1. Focus on efficient products and accelerate the process of specialized production.

Hearst Company became a strategic joint-stock company in 1997, and its assets were divided into 10 legally independent functional companies. In recent years, we have focused on high-tech medicine, pesticides, special coatings and life sciences, and developed biotechnology in the fields of health care and nutrition.

2. Merger of enterprises related to its company's business, and increase the proportion of shares owned by the company, so as to obtain the maximum profit. Its main industry behaviors in recent years are as follows:

Merged American pharmaceutical company Marion-Moeller-Dow (MMD), and acquired 43% shares of French pharmaceutical company Russell-Clough in February of 1996, which was later merged into Hearst-Marion-Clough.

AgrEvo is a joint venture between Hearst and Schering, specializing in the production of pesticides.

Hearst's specialty chemicals division merged with Clarion Special Company, which will become one of the largest specialty chemicals companies in the world, mainly dealing in color masterbatch, pigments and surfactants.

3. Expand the market in Asia

Hearst decided to move its bulk products to suitable areas outside China. Asia is its new development direction, and its main investment targets are China, India and some Southeast Asian countries. The company is considering building 20 chemical projects in China, including antibiotics, dyes, polyester spunbonded fabrics, industrial gases and automobile paints. By the year 2000, it will expand its investment in China to more than 654,380 billion US dollars.

4. Develop new products and technologies through cooperation.

Develop innovative drugs and treatments, plan to start genetic research, and establish another biotechnology development center in the United States.