The Study On Strategic Development Of Military-into-civilian And Globalization Of China North Industrial Corporation

In current crucial period of protesting China against the global financial crisis as well as maintaining fast yet steady economic growth, and in the face of potential and profound change of the world situation and violent development of technology, enterprises of military industry take up a historical and important responsibility of ensuring development both in national defense and social economy, as well as keeping growth momentum of military science and technology. Therefore, the paper takes China North Industries Corporation as one of the successful enterprise in military-to-civil transition to make the development strategy research.Established in 1980, China North Industries Corporation (hereafter referred as NORINCO) is a giant enterprise group engaged in both military product manufactory and capital operation, it is integrated with R&D, manufacturing and marketing. NORINCO has an extensive business scope mainly related with defense equipments and products, such as exploitation of natural resources including crude oil and rare minerals, international economic cooperation. With development, NORINCO grow up from a small sized company with less than one hundred staff to a giant multi-national enterprise. NORINCO carried out the reform as a state-owned military enterprise focused on military products to militarily and civil integrated level, promoted an international diversification market. It is an important player not only in international militarily exports market, but also in natural resources and the precious minerals exploitation. It made a great breakthrough in implementing the strategy of military to civil transfer, and find a creative unique way of development for weapons modernization healthy growth.Before China joined WTO, the Government triggered system reform for military enterprise in 1999. Research and manufactory companies of military industry represented by NORINCO started to step out of the planned economic system which kept for decades to enter the market competition environment as an independent market player. Facing unprecedented competition and challenges, lots of transitions happened to military industry companies in diffident aspects, including from serving for national defense forces into market serving, turning from offering arms to army into offering civil products to domestic and even international market, turning form mono production system into army-civilian combination form., turning from planed economy into complete marketing economy. The huge environmental changes threatened the newly developed enterprise, on another side, it also provide an opportunity to push the establishment of modern company system. Some of the companies transferred successfully from military only to military-civil use, represented by NORINCO, fresh with vigour. Compared with traditional powerful militarily companies, it is clear that there still a long way for national enterprise.By taking strategic theories, researches are made for Chinese national military enterprise, represented by NORINCO, through SWOT investigation and analysis, the strengths, weaknesses, opportunities, threatens and other factors which maters company's strategic development are summarized. According to the result of SWOT analysis, the development strategy is made, strategic objective is obtained, and some suggestion for implementation is provided.