Strategy Transformation Study of Small and Medium-sized Private Enterprises — Illustrated by the example of Julong Group
Date Issued
2014
Date
2014
Author(s)
Ma, Jian-Bang
Abstract
After more than 30 years rapid development of reform and opening up, small and medium-sized private enterprises in China have formed a certain scale. But with the further opening up of international market, rapid development of domestic market, gradual opening up of monopoly industries and the government canceling protecting policy of competition from foreign-funded enterprise, every field has entered the stage of fierce competition. Therefore, small and medium-sized private enterprises have faced large challenge due to they stand in same stage with large state-owned enterprise and Multinational Corporation. Meanwhile, after the development of small and medium-sized private enterprises reaching to certain scale, they are meeting many problems such as the changing of outer market and inner operation management; consequently they are facing obstacles and bottlenecks in development and under press of all parties. If they keep their inherent development model, they will be at a competitive disadvantage and be washed out by market at last, which will be the biggest threat of their survival and development. Based on the background above, the author determined the subject of strategy transformation study of small and medium-sized private enterprises. This subject takes example of Julong Group, uses case analysis method and is supplemented by questionnaire survey method to research, places extra emphasis on theory and practice, bases on the extensive research for be researched enterprises by questionnaire survey, chooses part of key issues to interview deeply and gets preliminary data, through collecting and analyzing these preliminary data, gets argument of this paper; after comprehensive and in-depth research for case company, the author finished case analysis of this paper. After research and analysis, summarized the following conclusion: 1. The transformation of small and medium-sized private enterprises is a systematic dynamic process, the manager must base on the present developing scale and level, take the initiative to look for the effective method and model which are suit to transformation and development of enterprises, design systematically in organizational system, share system, management system, distribution system, choosing of staffing model and company culture. They neither copy other company’s model nor reform one-sided in certain aspect. Like the saying people always says,” What''s suitable is the best! ” 2. Although the scale and operational form are different in every enterprise, the stage and problems they faced through the process of development are same in general. With the rapid development of domestic market, further opening up of international market, gradual opening up of monopoly industries, and transformation of state-owned enterprise, only can small and medium-sized private enterprises reform sustainable in system and mechanism by following the situation, their enterprises will be built to last, only can reform promote development, only can reform keep enterprise exuberant vitality.3. The motive force of small and medium-sized private enterprises doesn’t merely come from enterprises themselves but also from the changing of market environment both international and domestic, macro policies etc. Consequently, these enterprises should be realistic, adhere to people-oriented, considering the system in both macro and micro environment in the process of strategy transformation, gradual progress, and that will not happen overnight. 4. The point of small and medium-sized private enterprises’ transformation is in the changing of thinking, therefore they should change their thinking method, abandon those conventional, inherent and rigid things. It must be a very difficult process, but it also must play a important role in enterprise transformation. Therefore, only by putting transforming the idea in the first place, they can boost strategy transformation smoothly. The conclusion above prove that the strategy transformation of small and medium-sized private enterprises has the dialectical relationship between internal and external causes, they should consider the situation of inside and outside, persist in perceptiveness, purposiveness and innovativeness. Consequently, the implementation of small and medium-sized private enterprises’ strategy transformation is the best choice of rebuilding competition advantage, lifting society value, realizing new operation form and striking for survival.
Subjects
Small and Medium-sized Private Enterprises
Strategic transformation
Julong Group
Type
thesis