Transformation Strategies Of Chinese Military Electronics Companies

With China's transformation of economic system from planned economy to market economy, the State Council in 1999 began to require that all the ministries and commissions and the subordinate scientific research institution under the management system gradually should be transformed into enterprises. In the face of increasingly fierce competition, Chinese military electronic companies are actively trying to explore industrial restructuring, adjusting the management mechanism of enterprise, developing their core products, core technology capabilities and enhancing their core . competitiveness. This study attempts to find the reasons for the transformation, the conditions for the transformation, the implementation of industrial transformation strategy, and the methods to validate the performance of transformation. Based on the analysis of relevant literature, case studies and questionnaire survey method, this study analysis all the questiones mentioned above, draws the following conclusions:(1) Discussed the industrial transformation of Chiness military electronics companies. The paper divided the transformation into three stages:pre-transformation, on-transformation and after-transformation. On the stage of pre-transformation, enterprises need to analyze the external and internal factors of transformation, and establish a rational transformation strategy combined with the enterprises'own unique ability; on the stage of on-transformation, they should implement the industrial transformation strategy mainly from four levels:corporation culture, organization structure, technology strategy and marketing strategy; on the stage of after-transition, some practical performance evaluation methods are needed to analyze the success or failure in transformation and provide guidance information for further amended restructuring. Compared with other studies, this paper creates the closed-loop model of transformation process, and analyzes the transformation in different stages.(2) Foundation of the strategy for the industrial transformation of military electronics companies comes from analysising reasons for transformation and the unique ability of enterprises. Compared with other studies, this paper found the specific reasons for transformation of military electronics companies nowadays:the external reasons mainly due to the rapid development of the aerospace industry and the increasingly fierce market competition, while the internal reason mainly lies in the need of further improvement of operation performance. The industrial transformation of military electronics companies requires a combination of the unique ability of having the industry Qualification approved by government, which can make help to the industrial transformation and reduce the risk of transformation. There have been so many research literatures for enterprises' unique ability currently, which is mostly confined in the level of detecting the unique ability. Instead, this paper focuses on the use of unique ability, puts forward that the transformation strategy requires a combination of its unique ability and play the advantage of their own, so that the strategy are more effective and practical.(3) Implementation for the industrial transformation of military electronics companies is mainly from four levels. Nowadays there are many research literatures about the classification of transformation strategy, but few about how to implement the transformation strategy. This paper proposed that the transformation strategy needs to be implemented from four levels:integrating the transformation strategy into the corporation culture, clearing the responsibility of different organizational structure, improving the efficiency of cooperation between organizations, strengthening the research and design capability while cultivating product from project, subdividing the market and doing well projects to popularize their products.(4) Performance evaluation for the industrial transformation of military electronics companies should distinct the weight of financial indicator and non-financial indicator when assessing. At present, many research literatures support assessment method for the financial indicators and non-financial indicators. However, this paper on the case of a company, divided the weights of various financial and non-financial indicators and provided a practical method of performance evaluation.