Hillside Reform Theory And Thermal Equipment Corporation Sustainable Development Strategy

"Halfway Mountain Reform Theory" tells us: when an enterprise enters into a certain period of rapid development from a small scale to a lager scale, appropriate adjustment (or reform) of the industry structure, product structure, human resource structure and the management concepts and etc. must be made to create a proper platform which matches the new environment. This enterprise could, therefore, march on from good to great. So when reaching a half way mountain stage, a wise enterpriser will initiatively adjust and reform the above mentioned aspects, build and consolidate a platform to be a new and higher starting base for further development of the enterprise.This article tries to begin with simple description of this theory, reinforced by further study and research of this theory, and demonstrate the importance of this theory for the enterprises during their development process by analyzing the background of the development, reform and evolve process of Thermal Equipment Co., USA, and its subsidiaries in China. An enterprise, in the process of its growth from scratch, from a small scale to a larger scale and further to a mature stage, will inevitably pass through many half way mountain periods, will confront puzzles of how to keep growing, which requires different halfway mountain reforms so as to walk out different dilemmas then and break out of tight encirclements created by the competitors. This article, in an analytical way, reveals the great importance of this theory for enterprises to form their core competence (competitive force) and set up their strategies of sustainable (continuous) development. Meanwhile, this article analyzes the development stages, the market and competitors and the strength and weakness of the Thermal Equipment Co., USA, and its subsidiaries in China;describes how the company and its subsidiaries maintain their strategic leading position in the industry by grasping historical opportunities, coping with all kinds of challenges utilizing this theory and correctly dealing with the relationship between the corporate headquarters and the subsidiaries.