Tobacco Industry Merger And Reorganization Of The Performance Study

The total annual tobacco sales income and profits of china are less than that of Philip Morris Company, which reflects that the organizational and product structure of enterprises in china's tobacco industry are irrational. There is still a big gap between china and other countries in tobacoo industry's market concentration, the size of the market and in profit margins as well .This cigarette industrial organization with low market concentration and poor performance have been unable to meet market competition and development needs. For this reason, China's tobacco industry puts the promotion of enterprise organizational restructuring on a strategic position and proposes the strategy of constructing large corporations, establishing big market and developing brands. In the coming period of time at Chinese tobacco industry, we must do a good job in adjusting the organizational structure of enterprises, vigorously promoting enterprises, merger and reorganizing and integrating enterprises, as well as fostering large enterprise groups with international competitiveness.The subject of this thesis is the research of achievement effect, combining the characteristics of their trade by the use of micro-economics, industry economics, econometrics, and other theoretical knowledge of the tobacco industry's mergers and reorganizations were analyzed, with emphasis on analysis of the tobacco industry after the merger and reorganization of the scale economic, social structure and market performance; It provides policy recommendations For the next step of China's tobacco industry mergers and reorganizations. Specific research results are as follows:At the raspect of concentration in the industry, it is used CR of concentration of manufacturers and HI on the data from 1995 to 2005 statistics. By analyzing the results, although the industry over the past few years, as for "close down small" strategy, a substantial number of enterprises decreased, but the industry has little changing in the degree of concentration. China's cigarette industry is still in a decentralized market structure. Through the research of the performance in China tobacco industry, the Chinese tobacco industry and the tobacco industry concentration MES, we think that among the performance of the tobacco industry, the degree of centralization and MES, there is a strong positive relationship. As the increase of concentration, tobacco MES industry will be increased accordingly. In other words, China's tobacco industry MES is not immutable, which indicates that China's tobacco industry's internal structure optimization is a continuous integration, dynamic and constantly improving process.According to information vendors, model estimates show that there is a serious waste of resources and idle in China's tobacco industry. To a large extent, This phenomenon are closely related with the actively developing local industries and local restrictions on foreign cigarettes. This means that to improve the efficiency of the capital restructuring carried out across the country, will be an important way for future development. If it can not solve the problem of the region blockade, the excellent enterprises can not form trans-regional enterprise group and the tobacco industry's profitability will be further weakened. And the survival of this state of multinational conglomerates processing enterprises face when possible because of economies of scale and can not give full play to defeat in the competition.In order to improve China's market concentration in the tobacco industry, tobacco industry must strengthen the international competitiveness of China's tobacco industry, Such as to make brand as a link to a cluster advantages, format large regional groups, Construct "Monopoly System + regional tobacco company" Group management mode, adjust organizational structure, establish a modern enterprise system, cultivate scale enterprises choosing reasonable restructuring mode, support the strong and excellent ones, increase in tobacco industry concentration in the process of merger and reorganization strengthen the brand consolidation, and improve performance of large groups.