The Research On Development Models Of Group Companies In Development Zones

With the construction and development in more than two decades, Development Zones in China now serve as engines for regional and even national economic growth. Therefore, they are performing a more important role in our country's deepening reform and further opening up to the outside world. With their contribution fully recognized, their operation mechanism has become a topic of common interest of their managerial staff and the governments at all levels, and a focus of research by academics. With the background of Development Zones practice in the transitional period in China, this paper is intended to launch a research on development models of Group Companies, the micro-economic main bodies of Development Zones and so on based on an in-depth discussion and analysis of such middle-view-level issues as Development Models of Development Zones and operational rules of their economic system. Research is also done on development in different periods of time and in various environments, the transfer mechanism of growth power of Group Companies. In the meanwhile, analysis is made on the economic system assignment efficiency in Development Zones to clarify the contributive elements in Development Zones flourishing and regional economic growth.Group Companies in Development Zones started in the macro-policy-environment with twisted commodity prices when the highly-centered resource allocation system was in work and in a lacking-in-self-management-power micro-operation-environment. This paper is designed to disclose the dynamic development characteristics of the Development Models of these companies in light of their Business Choice Model, Trading Behavior Model, Financial Relations Model, Organizational Structure Model and so on. Meanwhile, in-depth analysis is conducted on the nature and connotation of their activities as production, operation, management, financing and so on.In this paper, firstly, it is held that starting and growth of Group Companies in Development Zones are closely linked in economic regard with the organization and implementation of industries in the zones. The special nature and contents of industries in the zones decide that an important cause and effect relation exists between Group Companies Business Choice Model and the industries in the zones. Secondly, the pricing process of their products is a result of game by the trade entities with sensible profit reasoning. The trading behavior characteristics and the extended contents such as economic and financial policies provide us a new perspective and footnotes of behavior border of the behavior characteristics of Group Companies. Thirdly, the financing process could be defined as combination of certain functions of capital in the system and structure in Development Zones. Their financing model refers to the grid of all trade governance models formed in trading process, whereas forming of trade governance models reflect the results of game equilibrium of governance measures by benefit entities involved in trading. Fourthly, the Group Companies'organizational structure models reflect their relations with the economic environment of the Development Zones. The organizational structure models may vary for diversified development motives and development approaches. A dynamic game model for their organizational structures under double control is established in this paper and the structure elements and conditions for game equilibrium are discussed for Government-led Organizational Structure, Mixture Organizational Structure and Company-led Organizational Structure.Based on the above analysis, the development of Industrial Model of Development Zones is proposed to be realized in the dimensions of their Business Expansion Model and Organization System Model. It is pointed out that their development is going to follow the track of scale expansion, industrial upgrade, management optimization and energy scale transition. With production and financing power in combination, professional market operation, some group companies with huge capital, advanced management concepts and abilities will evolve into akin-financial holding companies.