Organizing Large Scale Enterprise Groups By Capital Link And The Study Of Its Competition

In this paPer we first discuss that it is a law for enterprise grouPs emergence andthe relation axnong its members shou1d be built on base of caPital. Because of theeconomies of scale and economies of scope, the scale of enterprise become larger andthe scope become wider. Bot the ellterprise scale cannot exPand withollt limit becausethe cost of its management wtl1 increase with its scale become larger. In ths paPer weuse the logical fatiocination to get the optimal scale of enterprise. We can say that thelink among intemational grouPs members is caPital in natUre because their emergenceand developmefit accord to the market law We also sum uP the general character ofthe ifltemational grouPs.In the following chaPters we first advance the definition and the main characterof enterprise grouPs. Then we sum uP the history and the curreni situation of ourenierprise grouPs. In the meanwile we pllt forward that the main problems of ourellterprise grouPs are that there are no caPital link between the members and the scaleof enierprise grouPs are small and the caPability of their R&D are weak. We alsodiscuss that the corporation properties are decided by caPital because of its economyfimction and its importance. Then we show the competitive condition of theintemational market and the importam status of enterprise groups and caPital. So wecan see the significance of organizing enterprise groups by caPital link. Then we putforward the modes and the ways of organizing enterprise groups by caPital link. Atlast we discuss that the main factors of the enterprise grouPs competition are thecaPability of caPital centralization and distriblltion. Farther more we discuss the twokinds of caPability connotation and their factors. So we can get the conclusions thatthe caPital link is very importam fOr the eflterprise grouPs competition. And we showthat there are not certain connections between the enterprise grouPs and themonopo1y.