Study On "Enclosure Management" In Raw Material Producer Integrating Forest And Paper Industry

As the global economy develops in an integrated manner, integrating forest and paperindustry has become the best pattern adopted by both domestic and foreign paper-makingenterprises. Including raw material production as one step of internal development strategy andinternalizing market transaction not only saved transactional cost, but also drives up thehealthy development of the whole industrial chain. In recent years, a large number of studieson the development pattern and management pattern featuring integrated forest and paperindustry have been carried out by foreign countries. Some large-scale foreign enterprisesintegrating the two industries, such as Stora Enso and UPM-Kymmene, have alreadyestablished a whole set of successful management pattern for their raw material producers.Although China is the main producer and consumer country of paper products in the world,raw material producers integrating forest and paper industry do not have a long history ofdevelopment. The poor management, incomplete management system and problems inmanagement impaired their sustainable and healthy development. The paper, basing on rawmaterial producers integrating forest and forest industry, aims at exploring an “enclosuremanagement” pattern for raw material producers suitable for Chinese situation, and laying thefoundation for improving the management in those producing enterprises.Firstly, a supporting system for the theory of enterprises integrating forest and paperindustry, was established on the basis of international management theory, internal controltheory, value chain management theory, corporation boundary theory and risk managementtheory, through combing through relevant theories of business management and combining thepractice of the enclosure management in large-scale enterprise integrating forest and paperindustry.Secondly, it summarizes main experience and problems through analyzing thedevelopment history, evolution trend and management pattern of the integration of forest and paper industry both at home and abroad, which provides an important basis for study onmanagement pattern of raw material producers integrating both forest and paper industry.Thirdly, it established an index system for comprehensive evaluation of managementpattern featuring integrated forest and paper industry, analyzed and commented on the fourdevelopment patterns, as well as laid the foundation for the construction and evaluation ofmanagement pattern adopted by raw material producers integrating forest and paper industry.Finally, based on the summary of application of value chain management theory, internalcontrol theory, boundary theory and risk management theory, we borrowed the managementexperience from large-scale foreign raw material producers and considered the “non-enclosure”characteristics of production, operation and management in raw material producers integratingforest and paper industry, and eventually established an internal “enclosure management”system for organizational mechanism, human resource, internal control and management, aswell as main business procedure, an external “enclosure management” system for reasonableboundary and risk control, and finally an “enclosure management” pattern for raw materialproducers integrating forest and paper industry.We adopted the “enclosure management” pattern in the operation and management intothe most typical raw material producer integrating forest and paper industry--Hunan MaoyuanForestry Co., Ltd., by establishing and adjusting the organizational mechanism, optimizinghuman resource management mechanism, building and improving internal control andsupervision mechanism with the internal control theory, as well as controlling main businessprocedures with chain value theory and internal control theory, and eventually formed a“management enclosure” inside Maoyuan Forestry; Externally, we formed a “managementenclosure” outside Maoyuan Forestry through adjusting and controlling corporation boundary,laying down risk control and prevention measures. With the internal and external “managementenclosure” system, we improved Maoyuan’s management and market competitiveness, as wellas demonstrated the “management enclosure” pattern’s adaptability and practicality for rawmaterial producers. In addition, this paper provides policy suggestions addressing the policy problems facedby raw material producers, and lays the foundation for formulating state policy towards rawmaterial producers integrating forest and paper industry, so as to promote rapid development ofthose enterprises, meet the demand for raw material, as well as realize greater social andecological efficiency.