Case playback:

　　In 1956, 18 farmers founded the A company, to provide fresh milk market. During the period of 1964 - 1983, A company has developed a whole sweet milk powder, powder production line, strengthening the malted milk, malted milk and infant formula milk powder particles, obtained the preliminary development of enterprises. With the development of infant milk powder market gradually mature and continue to improve product structure, A company's products in short supply situation. In 1986, A company takes the lead to create and promote "urban and rural combined mode of dairy cattle, milk into the city to the countryside", improve the "company + base + farmers" mode of feeding, solves the problem of restricting the development of the milk source, fulfilled the first leap of enterprises. By 1993, A, milk production and sales has been ranked first in the country, but in the face of the market demand situation, the production capacity of enterprises to reach the limit. Therefore, the A company to implement brand operation and group strategy, through capital operation, realizes the low cost expansion steadily, has become China's dairy enterprises in the dry dairy products, Cereals, milk, sour milk, milk beverage five categories of products complete leading enterprises. In 2006, A company and the world's largest dairy manufacturers of New Zealand B company set up a joint venture company, began to implement the strategy of international entrepreneurship. By 2007, A company for 15 consecutive years to achieve sales of milk powder the first, sour milk and liquid milk production and sales were ranked second and three, with the "national inspection-free products", "China famous brand product", "a well-known trademark in China" title, "innovation and integration project" a new generation of infants formula study and its supporting technology won the two prize of the 2007 National Science and technology progress award, the total assets of 1561000000 yuan, the brand value of 14907000000 yuan, to become "China top 500 enterprises" and "China 500 most valuable brands" one. In 2008 September, A company production of infant milk powder was found to contain the industrial chemical melamine, resulting in more than a Chinese take over contaminated milk powder infant suffering from kidney stones. In 2009 January, A chairman, general manager of C because of violating the production, sales and shoddy products of sin, sentenced to life imprisonment, deprived of political rights for life, a fine of 24687411 yuan. In 2009 February, A officially bankruptcy.

　　Intensive case:

　　Western business management theory has experienced the classical management theory, behavior science theory and modern management theory of three period. Nineteen sixties, with the increasing market competition, enterprise management of the transition from production management to the management changes, enterprises begin to pay attention to the market, and strengthen the analysis of the competitive environment and competitors. At the same time, with the development of productive forces, the scale of the enterprise and the business scope expanding, capital demand rapid expansion and limited capital contradiction. Enterprises need to apply the scientific method to make a choice of career, and to form an overall, comprehensive development planning, and the influence of enterprise strategy management theory is.
Generally, the traditional strategy management is the basis of enterprise internal, external environment and to make changes, implementation, process evaluation strategy, its core task is to explain the reasons for the existence of enterprises. With respect to the production and operation management function, internal, routine, production and conservative, traditional strategic management has the characteristics of integrity, externality, long-term, competition and change. But the traditional strategy theory in the study of corporate strategy, strategic analysis and evaluation usually start from a deterministic environment, weakening its practical effect. If, on the premise of the analysis framework of SW0T, BCG matrix and the "Five Forces Model", the traditional strategy of general tools and techniques it is assumed that the whole industrial structure and enterprise environment is stable, but the identification process, and in the formulation of strategies, limited to static analysis, lack of initiative, contribute to the main objective factors and Research on uncertainty.

　　But the enterprise strategy often covers the development of 3 - 10 years, all of strategy formulation, implementation and control of characteristic elements of great influence are very dynamic and uncertainty. Particularly since twentieth Century, turnover, market structure factors such as the transformation and upgrading of industrial structure, government policy to make the external environment which the enterprises faced a more dynamic and uncertain. At the same time, because of the rapid development of science and technology as well as the impact of global culture and blend to deepen, enterprises are faced with the initiative more internal and uncertain factors. The characteristics of enterprise and the environment in which the information is present a "initiative" and "uncertainty", make the enterprise strategy formulation and implementation is often accompanied by fuzzy, discontinuity and high risk behavior, corporate strategic goals are often difficult to achieve, and even make the enterprise suffered a crowning calamity in the implementation of the strategy process. Since the nineteen ninties, the failure of many international, domestic corporate strategic events. From British Bahrain bank failures in the United States, Enron, WorldCom, Adachi Nobu bankruptcy, dismembered, collapse, the Japanese Yaohan Corporation and Hongkong Peregrine in bankruptcy, the United States Lehman brothers, Washington Mutual Bank, general motors, Chrysler filed for bankruptcy protection, Merrill Lynch acquired by Bank of America, Fannie Mae and Freddie was the United States government take over; to domestic Yinguangxia delisting, Delong collapsed, huge losses of fuel, love, three strains, the giant, Qinchi, bankruptcy of enterprises, the Sanlu milk powder incident and Wong Kwong Yu in prison and prison disaster, show the urgent demand of the limitations of traditional strategic management and strategic management of new.

　　In this case, the A company with its clear development strategy, strong spirit of innovation, the rapid development of China's dairy industry to seize the historic opportunity, has become the big boss of China's dairy industry, its assets and brand to become the industry's. But a crisis, then let 50 years achievements competitive advantage came crashing down in a few months, also caused a crisis of confidence in the Chinese dairy industry. On the surface, the occurrence of A, milk powder incident is the result of the dairy farmers seek nothing but profits, out of control, circulation channel conflict and management of government and social supervision of the lack of other reasons, but the fundamental reason lies in the limitations of traditional strategy.

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