Strategic value evaluation of China steel companies based on factor analysis and entropy weight

In knowledge economy, strategy decides competitive advantages of steel companies and intellectual capital has become an important factor of strategy and development. Based on strategic theory and intellectual capital theory, evaluating indices of steel company´s strategic value are selected. Then, factor analysis is used in steel companies´ data to abstract strategic factors and to obtain factor scores. Entropy weight method is applied to calculate factor weights. Finally, strategic values of steel companies are synthetically evaluated by factor scores and weights. Compared evaluating results and stock prices, the evaluation is effective. In conclusion, the evaluation selects systematically evaluating indices and their raw data are easy to be obtained. The evaluation avoids subjective scoring and weighing and its results are effective, so it has favorable practical value.