Ups And Downs, And Policy Recommendations Of An The Care Old Textile Enterprises

ACO., LTD, a textile & dyeing enterprise, which was aided by Chinese government in 1968, bailed up in 1991 due to its bad running. Supported by Chinese and Mali's government, in October 1994, GENERAL CORPORATION both with the Mali's government jointed capital to restart this enterprise. Thank to the back from both governments, advantageous conditions of the local market and the effort and intelligence that the management team has infused, this joint venture corporation, makes fairly good benefits, presenting itself as a preferred and household textile maker in Mali. But from 2001, this corporation is entering a new, tougher phase of its history. A CO., LTD used to be one of the most important and steady fiscal sources to the GENERAL CORPORATION, nowadays, as a result of the poor management and the intense competition, the major business of our general corporation while still profitable, is treading water, fierce reform won't be avoidable. As a matter of fact, any corporation reform can't last for a long time without money. I reckon, all problems, the enterprise is faced with, are being triggered by the growing fringe of a lot of causes, some of them are from the outside, the others lie within. For example, lacking market demand, weak ascend of consumption, price-rise of cotton, inadequate energy, main executives and engineers don't match the new market environments and so on. Since 2001, the senior staff of our corporation has pulled six rabbits out of the hat to solve these difficulties. Open up new manufacturing lines, buy more new equipment, add new products to its stable, create a construction company, export to Europe and America and cut down the cost. This prescription is obviously short of evaluation and control of the possible risk, caused by the imaged approaches due to the marketing environment of Mali, which is quite different with that of the 1994, many new unfavorable factors created big risk to any try to bail out the corporation. On the basic of avoiding high risk and providing some profits, I suggest three programs to resolve the difficulties:First, attract cooperate partners on the strategic level, continue investment, implement related divergence strategy.Second, strategy "withdraw", gain the vast cash flow in the short-term. Third, strengthen rule, drain the pond to get all the fish.