Study Into Mechanism Of Creating Shared Value About Chinese Dairy Company

In recent years, Chinese dairy industry’s crises take place frequently, which has causedserious damage to the health of consumers and their own development. The occurrence ofthese crises reveals the flaws of the dairy enterprises’ management. Only through changingthe way of management can dairy industry avoid the crises and achieve sustainabledevelopment. However, these companies merely carried out crisis management by simplyassume certain social responsibilities to restore its image. And the effect is minimal. Inorder to explore more efficient way to manage for Chinese dairy business, this paperapplies creating shared value as a strategic guide, using the system dynamics approach toexplore creating shared value system of Chineses dairy companies.Firstly, the thesis gives the detail review of the current research of creating sharedvalue and sums up the current valuable research. Next, it introduces creating shared value’scorrelative theory in detail and describes the connotation of creating shared value,highlighting the links between creating shared value theory and stakeholder theory, valuechain, diamond model or social responsibility.Secondly, the paper explores the current development of China’s dairy industry. Thepaper generalizes Chinese dairy industry development crisis and gives the comprisionbetween Chinese and abroad dairy companies. Then it uses value chain theory to identifythe opportunities of creating shared value to help find the thrust for our dairy industry tocreat shared value.Thirdly, on the basis of the above analysis, this paper uses system dynamics approachto help explore the mechanism of creating shared value about Chinese dairy industry. Itconstructs the causalities of between enterprise and key stakeholder system about creatingshared value and does the qualitative analysis. Then, it probes into factors of creatingshared value through empirical analysis, showing that creating shared value strategy canenhance the value of the business at the same time promote its stakeholders’ value.However, it requires long-term vision and sustained measures to ensure the implementationof creating shared value.Based on the previous research, the paper put forward suggestions about how to createshared value for Chinese dairy industry and its key stakeholders in order to contribute to theconstruction of creating shared value mechanism.Finally, the paper summarizes the conclusions of the study, and points out the defect of the study. Due to the constraints of time and other objective criteria, the author can not dodeep research for a long time in the enterprise, so that the paper has some limitations, whichneeds further investigation in the future.