A Study On External Environment Of Cooperative Finance Development In Minority Areas

Rural cooperatives finance is an important part to the financial system and leadingforces in rural financial system of China. As the rural cooperative finance becomes thefocus of attention in all aspect, it will confront increasingly challenges, so we shouldtake effective competitive strategies to cope with the situation. Formulation of strategywould be impacted into internal and external environment organizations. For internalenvironment, we can try to improve it through the organizations’ own efforts; however,organizations can not able to control the external environment, so we need to analyzethe situation carefully in order to seek advantages and avoid disadvantages. This thesisis to do some studies and analysis on the external environment and draw usefulconclusions in order to formulate strategies.The author combines theoretical studies and experimental studies, macro-analysisand micro-analysis, together with knowledge in economics, management and so on. Onthe basis of comparing developments from domestic researches with overseas studies, ituses method of “PEST” and Porter’s “Five Factor” model to describe two majortheoretical frameworks in which we analyze the external environment. In this article, theauthor divides the external environment which affects rural cooperatives finance intofollowing two parts, the traditional external environment and modern competitiveenvironment. This paper analyzes the traditional external environment factors from fouraspects----government environment, legal environment, peasant environment andtechnological environment; at the same time, it systematically introduces fivecompetitive forces that contain potential entrants, substitutes, suppliers, buyers, andcompetitors in this profession to analyze competition strength rural cooperatives financefaced. Finally, this paper comes up with measures of promoting the development ofrural cooperatives finance, based on the external environment factors from governmentsubsidization, legal protection, peasant participation, technology consummation,organizations enhancing its own competition strength and so on.