| In2008, the world was suffering from a global financial crisis. Several contractmanufacturing enterprises in Dongguan of Guangdong province went bankrupt.“SmartUnion” is a typical example. The future of Chinese contract manufacturing enterprises isgloomy. These companies take cheap labor force as their main competitiveness. When theaftermath of financial crisis is still looming and the global economic situation remainsuncertain, on Feb.3,2010, Goldlok Toys Holdings (Guangdong) Co., Ltd, a toymanufacturing company in Jieyang City of Guangdong province, was listed on the smallplates of Shenzhen Stock Exchange. As the first listed toy manufacturing company in China,Goldlok Holdings has successfully entered the capital market in China. In the past, GoldlokHoldings has developed from the Zhenxing manufacturing plant focusing on OEM productionand business of processing on giving materials to the first domestic toy company listed withmore than90%of the products with own brands and annual revenues more than350millionyuan. Currently, it has achieved a successful “strategic transition”. Goldlok Holdings hasdeveloped from a family firm into a large, modern toy manufacturing corporation. In thisprocess, the company has enhanced its overall capabilities and become a good example ofcase study. The company’s success will make other domestic toy manufacturing enterprisesmore confident to the market.In this paper, data study and case study methods were used to study the GoldlokHoldings’ process of strategic transfer and listing. An analysis was made on the successfulexperiences of the company on its strategic transfer and the company’s progress on enhancingits corporate capabilities. Meanwhile, a prediction was made on the company’s benefits onlisting and its development direction in the future, hoping to provide useful reference toprocessing trade enterprises in China on achieving transformation and upgrading anddeveloping their own brands.To begin with, in this paper, a detailed introduction was made on the current developingstatus of China’s domestic toy manufacturing industry, including the features and potentialsfor toy manufacturing enterprises in China. Secondly, the process and significance of GoldlokHoldings’s strategic transfer before its listing was introduced. In the third and fourth chapter, adetailed case study was made on the company. Several corporate management theories,including the strategic management theory and the shareholding reform theory, were used toanalyze the process of the company’s strategic transfer. A summary was made on itssuccessful experiences. We have found out that Goldlok Holdings survived in the global financial crisis, because it had made a successful strategic transfer in advance. GoldlokHoldings’ success of strategic transition lies in its outstanding capabilities on strategicplanning, research and development, marketing and production management. The companyhas made continuous improvement on its overall capabilities. Thanks to these efforts, GoldlokHoldings has become an international modern corporation with enhanced capabilities onmaking profits and shielding against risks. The management is willing to make explorationsand make inspections on their advantages and disadvantages. The corporate leaders alwaysadvance with times. Thanks to this scientifically-oriented entrepreneurship, the company isable to make effective strategy, develop its own brand and achieve success on the market.Undoubtedly, there is no end for the development of a company. Goldlok Holdings hasbecome a successful listed company and is under good state of operation. However, gaps stillexisted between Goldlok Holdings and those mature modern corporations, particularly thoserenowned multinational corporations on the aspect of corporate governance. It is a greatchallenge for Goldlok Holdings on how to apply modern corporate management theories inprivate enterprises with Chinese characteristics. |
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