First, through mergers, alliances, restructuring and other forms of capital operation.
Joe J. stigler, an American economist and Nobel laureate in economics, came to a famous conclusion when he studied the experience of the development of famous American big enterprises: almost no famous American big enterprises developed in some way without using mergers and acquisitions to some extent.
It is difficult for an enterprise to develop by its own accumulation. Merger, merger and reorganization are the only way for enterprises to grow. Through capital operation modes such as merger, acquisition, combination and reorganization, the expansion of "strong-weak alliance" can make the scale of enterprises expand rapidly, improve market share and competitive advantage, and realize extraordinary development, which is an expansion strategy widely adopted by world-famous companies.
In recent years, the wave of enterprise merger is surging. 1On July 3, 1998, Volkswagen AG of Germany signed a contract to acquire Rolls-Royce Motor Company of the United Kingdom at a price of 430 million marks (about 246 million US dollars), thus creating a model of strong alliance and improving core competitiveness. This acquisition not only enables Volkswagen to have Rolls-Royce's original automobile core technology in terms of driving force, noise reduction, safety and comfort, but also greatly shortens the development cycle, shortens the training time of core competence, reduces the investment in science and technology, and avoids market risks. It invested heavily in building a new production line in Britain, which won the reputation of Rolls-Royce and quickly improved the competitiveness of enterprises.
1On August 4th, 1997, Boeing Company, which ranked first in the world aviation manufacturing industry, officially completed the merger with McDonnell Douglas Company, which ranked third, and the new Boeing began to operate, creating a model of strong alliance. This combination of high starting points has formed a new situation in which the new Boeing and Airbus Europe dominate each other in the aviation manufacturing industry, and also made Boeing's ranking among the world's top 500 companies jump from 1996 to 144 to the 39th place in 1997, rapidly expanding its competitive advantage with Airbus, giving full play to the advantages of both partners and forming an ultra-stable structure. The merger of Bell Akram and Nixon raised its ranking from 99th to 28th. The merger of SBC Communication Company with Pacific Ocean and Suras made it jump from 85th to 48th, which is also an important example of strong alliance.
Compared with the increasingly popular "bigger and bigger" M&A wave in the world, the scale of China enterprises is too small to control the market and meet the challenges of domestic and international competition, let alone strive to become the world hegemon. Compared with the United States and Japan, the production concentration of the top four enterprises in six typical industries of China machinery industry is too small. Tractor industry is 26.0% in China, 80.0% in the United States and 72.9% in Japan. The internal machinery industry is 22.2% in China, 5 1.0% in the United States and 60. 1% in Japan. 29% in China and 67.4% in Japan (excavators) in the construction machinery industry; Printing machinery industry in China 14%, Japanese 65.0%. Motor industry China 1 1%, the United States 56%, and Japan 65% (AC motors); Bearing industry is 25% in China and 90% in Japan. From the perspective of a single enterprise, the gap in business scale is even greater. Take the automobile industry as an example. At present, there are 122 automobile manufacturers in China, which are all over the country, more than any other country in the world. Automobile industry is a typical scale economy industry. According to international standards, only when the annual output of automobile manufacturers reaches 1 10,000 vehicles and the annual sales exceed10 billion US dollars can they form scale operation. According to this standard, no domestic enterprise can be counted as a scale operation. China's largest automobile manufacturers, FAW and Second Automobile, have an annual output of more than 200,000 vehicles, while Hyundai Motor Company 1994 produced 1 1500 vehicles, and General Motors Company of the United States produced 8 million vehicles annually. Any car factory in our country can't and can't compete with others. Therefore, if China wants to occupy a place in the international market competition in the future, it must completely break the restrictions of regional departments, close enterprises with low technical level in various places according to the requirements of a national chess game, take the road of alliance, form large enterprise groups in China, improve industrial concentration and enhance core competitiveness.
Small-scale operation is common in all walks of life in China. 1998 Four enterprises (groups) with an annual steel output of more than 5 million tons accounted for 33.5% of the national steel output, while Nippon Steel, Posco of Korea and ThyssenKrupp Steel Company of Germany accounted for 24.6%, 63.7% and 37.6% of the national steel output respectively in the same year. 1994, there were only 130 enterprises with an annual output of more than 30,000 tons in China paper industry (among them, only/kloc-0 enterprises with a production capacity of 654.38+10,000 tons and only/kloc-0 enterprises with a production capacity of 240,000 tons), with a production capacity of 7.2 million tons, accounting for 3% of the national total production capacity. Due to low technical level and lack of funds, many China enterprises and national brands are gradually replaced by foreign brands in joint ventures and cooperation. Joint venture and cooperation is an important means of foreign capital infiltration. Develop national industries and national brands, overcome the shortage of funds and technology, and implement the principle of domestic alliance first and foreign joint venture (cooperation) later. Instead of asking others to merge, how can we unite ourselves first? It is better to unite and strengthen yourself than to let others eat it. Of course, joint ventures should also introduce technology, improve the technical level of the industry, and strengthen basic research and technological innovation on the basis of expanding the scale. At present, enterprises in China ignore the combination with domestic enterprises and emphasize the cooperation with foreign capital, which is also rooted in the interest restrictions of regions and departments. Therefore, it is an important link to improve the core competitiveness to completely break the restrictions of regions and departments, establish a unified and open national market and take the road of group development.
In the global economic integration, large companies and groups are the main forces in the economic battlefield, and their strength reflects the national strength. The strength of the United States, that is, the number of people is less than 10%, and the income accounts for more than 80% of the national income. In order to enhance the core competitiveness of enterprises and set up enterprise groups in China, it is necessary to understand the development trend of foreign enterprise groups, carry out diversified operations on the basis of highlighting the main business, and at the same time, the enterprise groups are internationalized and networked, implement a new working system of group cooperation, and shape and maintain a good corporate image. We should also adopt various ways, such as merger, acquisition, combination, reorganization, holding, equity participation, industrial and financial integration, intangible assets operation, etc. Combined with the adjustment of industrial structure, we will establish tight and loose large companies and large enterprise groups with China characteristics.
Second, formulate the correct enterprise development strategy.
In recent years, with the continuous development of China's economic reform and market economy, with the support of the central government's development strategy and asset policy, the scale and strength of China's large companies and enterprise groups have grown rapidly. In 2008, the state identified six enterprises, including Qingdao Haier, Baosteel, Peking University Founder, Huabei Pharmaceutical, Sichuan Changhong and Jiangnan Shipbuilding, as the key support targets, and injected no less than 20 million yuan into the enterprises every year, striving to enter the world's top 500 in 20 10. At the same time, many enterprises have also set the grand strategic goal of hitting the top 500 in the world. The establishment and development of large companies and enterprise groups, marching into the world's top 500, is a solid foundation and an important guarantee for realizing the CPC Central Committee's proposal of doubling the GDP in 2000 compared with that in 2000. The comparison of the strength of the top 500 enterprises is not only the comparison of the strength of enterprises, but also the comparison of the strength of the country represented by enterprises. Their success was not built in a day. They have a history of bloody competition and struggle, as well as a history of mass killings and mergers and acquisitions. They have both successful experiences and failed lessons. The most basic experience of its success is to formulate a correct enterprise development strategy.
To formulate a correct enterprise development strategy, we must have a solid foundation. Based on the characteristics of forward-looking, competitive, long-term, overall, realistic flexibility and implementability, it is necessary to clarify the values, beliefs and codes of conduct pursued by enterprises in production and business activities on the basis of a large number of strategic investigations. Establish the business scope of "do something and don't do something", establish the business policy of "do something and don't do something", and formulate the development strategic objectives that are driving force, centripetal force and incentive for the development of enterprises.
Joseph Picken, Ph.D. in Business Administration, University of Texas, and Gregory Des, Ph.D. in Business Administration, University of Washington, believe that strategy is largely based on a series of assumptions, premises and beliefs, which involve the social and business environment, the company's tasks and the core competitiveness needed to complete the tasks. The internal guidance system on which the successful strategy is based is consistent with the actual situation of the external competitive environment, and the enterprises should coordinate with each other. There are five independent and closely related management measures to establish and test the solid foundation of hypothesis. This is: (1) promoting understanding. Make assumptions, premises and beliefs clear and easy to understand. (2) Determine the priority. Test the most important assumptions and premises. (3) Check the consistency. Determine the basis for the validity of the hypothesis and check whether it is in line with the actual external environment one by one. (4) Promote communication. Make the whole company management and everyone concerned know and understand the core premise of the company strategy and actively participate in it. (5) Monitoring and updating. According to the change of external environment, the relevant ways to realize the strategy are revised in time to seek and strive for more effective measures.
Generally speaking, enterprises in China belong to small and medium-sized enterprises. Especially after China's entry into WTO, it is directly confronted with foreign large-scale first-class enterprises and companies. To surpass the first-class companies, we must adopt a breakthrough strategy. This strategy requires the company to adopt a completely different strategy from its competitors and combine its uniqueness with effectiveness. Constantinos Markitz, a professor in the Department of Strategy and Management of London Business School, believes that six basic principles should be adhered to in adopting breakthrough strategy: (1) Choose unique strategic positioning. The strategic positioning is aimed at: ① Who should we take as customers? What kind of products or services should we provide? What should we do in order to finish this work effectively? The choices made by these three aspects. A company can only succeed if it chooses a clear strategic positioning. (2) Find out the options of the strategy. A company can't do everything for everyone, it must choose what to do and what not to do. When determining the scope and options, we should pay attention to the role of innovation mechanism to increase the number of feasibility that companies can seek and make the choice easy. (3) Clear strategic choice. Decide what the company should or should not do. (4) The selection combination must be continuously enhanced. (5) Coordination and flexibility. If the environment changes, the company can adjust its strategy according to the situation. Coordinate with the company environment without reducing flexibility. (6) Appropriate institutional support. In order to make the strategic choice achieve the expected effect, it must be well implemented, so the company must create a suitable environment. The environment for promoting and supporting the selected strategy includes four factors: corporate culture, incentive factors, company structure and personnel system, which should be coordinated and mutually strengthened to support and promote the selected strategy of the company.
With the development of the Internet age and the intensification of network competition, small companies tend to adopt flexible strategies against large companies. This strategy is that competitors use their resources, strength and scale to serve themselves. Speed, flexibility and leverage are the essence of flexible strategy. This strategy should adhere to three principles: (1) Move to a non-competitive field quickly and avoid competition with strong white edges. Move the battlefield to an area where you have an advantage, at least an area where your opponent has no advantage. (2) Be flexible and yield when being directly attacked by powerful forces, so as to expand your chances of survival. (3) leverage, that is, using the opponent's resources, strength and scale to deal with strength. Of course, these principles should be properly grasped in the competition field, otherwise it will be counterproductive.
Third, establish an efficient organizational management system.
To enhance the core competence of an enterprise, the most important thing is its spirit of learning and innovation, and whether the organization of the company is conducive to the cultivation of this competence. The trend of economic globalization, networking and digitalization in the 21 ST century requires the design and creation of a new enterprise organization form, so as to create and transmit new information sources quickly throughout the company.
The research of knowledge economy shows that reform and innovation, teamwork and maintaining and expanding core competence must be promoted simultaneously in the whole company, and new methods must be found to coordinate, protect reform, innovation and enhance competitiveness, and respond in time when competitive conditions need to change. The establishment of competitive advantage in the future needs to formulate new strategies and organizational designs, which can focus on creating and cultivating innovative sources of knowledge and ideas, and adapt to the requirements of products and services that redefine their industry boundaries. Therefore, it is necessary to establish a competitive advantage based on knowledge-to innovate and constantly create a dynamic market for products and services; Make the company leaders have the ability of reform and personal innovation consistent with the company's business priorities, enhance their own flexibility and reduce costs; Top managers should adjust their leadership style, reward system, corporate culture and reporting procedures, not only to protect the unique characteristics of the company, but also to adapt to changes in the external environment and make timely adjustments; Re-set institutional arrangements, especially the merger and reduction of branches and networks, so as to enjoy resources and information to a greater extent, form enough personnel to learn or cultivate new core capabilities, and promote innovation in global market operations; The openness of decision-making process makes all branches and departments pay more attention to the overall concept when planning and implementing their own business strategies, and coordinate the relationship between reform, innovation and the cultivation of corporate competitiveness; Promote the formation and cooperation of cross-departmental and multi-functional teams; Improve the reward system, so that rewards are linked to the performance of the whole company according to a certain proportion, rather than simply linked to the performance of various institutions, so as to promote cooperation between departments and better support the company's goals; Actively improve management and strengthen the overall concept of company diversification; Establish a corporate culture that respects learning, improve the enthusiasm of learning and enhance the flexibility of the company; The balance between huge organization and quick response ability.
To improve the core competitiveness through organizational design and management, it is necessary to change the concept and focus of enterprises, including the transformation from cost minimization to value maximization, from coordination to innovation tension, from structural design to joint mode, from precise means to organic system, etc. Strengthen management, seek and create the cooperative advantages of the company, so that the company's ability is indeed greater than the sum of its general components, and promote enterprise innovation and improve its innovation ability through effective incentives.
Four, adapt to the requirements of economic globalization, networking and marketization, update marketing concepts and strengthen marketing work.
A company, especially a large company or a large enterprise group, implements a diversified business strategy and faces a complex and changeable market situation. To explore the market, we need to renew our ideas, creatively study and inspect our own market, and expand new space and new fields of the market. Most enterprises investigate the market from three aspects: people, regions and products, and answer "Who are our customers?" "Where are they?" "What do they buy?" Three questions. But this is not enough. In order to update our ideas, we need to study the market as a dynamic system. Market is a feasible activity involving consumers and producers. Feasibility activities require consumers to obtain more value than production and sales costs; The size of the market depends on the number of consumers whose income exceeds their expenditure. Accordingly, it is necessary to discuss and study these three issues to determine the market. (1) What function or use can or may a product or service satisfy? Why do consumers buy it and what is its value? (2) What is its optimal production and sales mode, and what is its cost, that is, will the cost exceed its value to consumers? (3) Who is willing to buy products or services at such a price, and where are they? According to this principle, products and services that meet different functions or are produced by different production methods can be regarded as belonging to different markets. Using the feasibility principle, many businesses or markets that enterprises may participate in can be identified, but this is not enough to enhance the core competence of enterprises, nor can it help enterprises identify which alternative project is the best. To do this, you need a way to sort many options. This requires that two deeper principles must be adhered to in market positioning activities, namely, (l) enterprises must make clear the difference between strategic objectives and strategic necessity. Strategic market is the minimum range that an enterprise must operate in order to ensure the feasibility of operation. Of course, enterprises can still manufacture products beyond the strictly necessary scope, or provide services for different types of consumers in different regions. (2) The market chosen by the enterprise must be different from the competitor's market.
Finding new opportunities and creating new market space in the rapidly changing market is the guarantee for enterprises to expand and develop. To create new market space, we usually need to investigate and study many factors, including substitute market, different strategic groups in the industry, customer towns, supporting product markets, functional or emotional demands, different periods and so on. Through the investigation and study of these factors, we can find new markets and open up a new world for the development of enterprises.
For the consumer goods market, market share is not the whole answer, but also the best brand strategy. The profitability of a brand depends on two factors: market share and product attributes, which are determined by the competitive market in which the brand is located. The influence of brand's relative market share on profitability depends on the brand attributes of this kind of products, that is, value-added brands or value-added brands. If a product is mainly based on high-quality brands, then most of its brands are profitable; On the contrary, if a product mainly focuses on equivalent brands and special brands, its overall income will be very low. In this way, the research and development of enterprises mainly focus on high-value brands and low-value brands and their innovation.
Creating value for customers is an important concept in marketing and market development. Enterprises must truly serve customers, deeply understand their requirements, be customer-oriented, meet the needs of personalized development, seriously consider customers, and establish close relationships with customers. Insist on understanding customers; Strive for once and for all service; Promote value-added self-service; Provide one-stop shopping service; Transforming competitive ability into service ability; Seven principles, such as establishing long-term customer relationship. Make clear what we are doing better than our competitors, what strategic resources we need, how we can catch up with or surpass our competitors, the impact of diversification on an overall strategic asset, and understand whether we are competitors or beneficiaries in new industries; Lay a strategic foundation for enterprises to continue to expand into other industries.
Fifth, build a virtual scientific research network, expand the enterprise's own capabilities, realize technological complementarity, spread risks, reduce research and development costs, and obtain economies of scale and sustainable development capabilities.
Virtual scientific research network is an enterprise virtual knowledge alliance that can quickly respond to changes in market environment. It is an extensive member network, which can provide opinions and information, conduct contract analysis or design external packaging of resources. This kind of alliance has both tactical alliance and strategic alliance. Its main function is to expand the enterprise's own ability and explore more kinds of knowledge sources than an independent laboratory. By organizing external special research, production and testing of prototype products or special designs, enterprises can launch a variety of new products faster than competitors, quickly win the commanding heights of the market and obtain better economic benefits. In the era of knowledge economy, knowledge has become the most important asset of enterprises. To enhance the core competitiveness of enterprises, enterprises must have high quality, high technology and rapid research and development capabilities. If an enterprise wants to succeed, it must have four abilities: quality, cost, cycle and innovation. Facing the changeable market demand and fierce competitive environment, it is difficult for most enterprises with limited knowledge resources to balance their balance and competitiveness through effective allocation of resources. Their general choice is to use external resources as much as possible, actively create conditions and realize the complementary advantages of internal and external resources.
There are only two ways to use external resources to realize the complementary advantages of internal and external resources: procurement and strategic alliance. Although the former is direct and effective, it is easy to cause vicious competition and lose both sides. The latter is very popular because it can overcome the shortcomings of the former. In the first half of 2000, China color TV giants Changhong, Xoceco, TCL, etc. Gathering in Beijing is a very good start. The comprehensive and in-depth development of virtual strategic alliance and its unique synergy ability are the sharp weapon for enterprises to enhance their core competitiveness. It greatly strengthens the dominant position of alliance enterprises in core competitive resources, knowledge and technology in a larger scope under certain scale conditions, and is a new source of core competence advantages of alliance enterprises. It plays an important role in realizing enterprise technology complementarity, dispersing risks, reducing research and development costs, and obtaining economies of scale and sustainable development capabilities.
Six, cultivate the ability and mechanism of continuous innovation, create excellent corporate culture, promote enterprise knowledge management, and build a learning enterprise.
Core competence will lose its due value over time. To maintain and expand the leading position and advantages of core competitiveness, we must give continuous investment and innovation to core competitiveness. For our country, we should pay special attention to cultivating the sustainable innovation ability of enterprises and creating the innovation mechanism of enterprises.
Enterprise is the main body of innovation. At present, the lack of innovation in China enterprises is mainly due to the innovation mechanism. To change this situation, we must adhere to the people-oriented principle and do a good job in human resource management. To establish a correct view of talents and do a good job in talent training, we must understand the demand for talents, attract outstanding talents, tap their potential and carry out effective incentives. We should not only use material incentives, but also pay attention to spiritual incentives to provide a place for talents to really play their role and seek the sustainable development of enterprises.
Excellent corporate culture is the spiritual pillar of modern enterprises and an important embodiment of their core competitiveness. To create excellent corporate culture, we must first inherit and carry forward China's excellent cultural traditions, including caring for social reality, attaching importance to collective and harmonious interpersonal relationships, tenacious regeneration and assimilation ability of foreign cultures, and indomitable spirit of struggle. On this basis, it is necessary to eradicate the strong feudal color and the brand of ultra-left thought in traditional culture, but the incomplete psychological structure formed by the system. Secondly, establishing the unity of enterprise interests is the key to creating excellent enterprise culture. Only when all employees of an enterprise closely link their own interests with the operation of the enterprise, share the same breath, destiny and help each other in the same boat, can they greatly glow their enthusiasm for work and stimulate the initiative and innovative spirit of all employees. Thirdly, enterprises must establish the marketing culture concept of all-round customer service and strengthen the construction of customer-oriented corporate culture.
Strengthen the knowledge management of enterprises, set up a knowledge supervisor, do a good job in research and development, strengthen vocational training and team building, optimize management art, and make enterprises become learning enterprises. Through continuous learning, enterprises can gain the energy to create a better future, cultivate a brand-new and open way of thinking, build confidence and change their minds. In order to realize the desire of * * *, which is also the goal of the enterprise, they will study all their lives, study together, and constantly master, accumulate and innovate new knowledge, new methods and new skills. This is an inexhaustible motive force for the development of enterprises, realizing the study and work of work, cultivating outstanding talents for the development of enterprises, and cultivating and bringing up new entrepreneurs.