Analysis Of Competitiveness About State-Owned Enterprises In Shandong Province Based On Factor Analysis

State-owned industrial enterprises are the leader of economical development and social progress in China, which is the dominant of key industries and areas related to national security and development. Shandong province, with lots of resource and state-owned enterprises concentrated, has a large proportion of state-owned economy. There are many stated-owned enterprises with good quality of operation. The size and the total output is in the leading position in China. However, with economic globalization and the market economy system reform deepening, the industrial structure and employment mechanism of state-owned industrial enterprises in Shandong province are unlikely to keep up with the situation, facing unprecedented challenges. Therefore, Shandong province must change the develop mode of resource consumption, based on CCAV and Twelve-Five planning, and commits to the development of high value-added-high-tech industries and the growth of leading enterprises, promoting state-owned enterprises in Shandong province bigger and stronger.Based on this background, the article is trying to analyze the competitiveness of state-owned enterprises through relevant economic data and factor analysis. I mainly use comparative analysis among state-owned enterprises in Shandong province and other provinces in China, which to draw the status of state-owned enterprises in Shandong province and its competitive enterprises and inferior enterprise. By comparison, we found that the scale and total output of state-owned enterprises in Shandong province are in a leading position. Heavy industries of Shandong state-owned enterprises have absolute advantage, such as computers, communications and other electronic equipment manufacturing, electrical machinery and equipment manufacturing, which has a close connection with great investment to heavy industries of Shandong province.The third chapter is the general qualitative comparison, in order to be accurate and scientific, Chapter IV use factor analysis to quantify overall competitiveness of state-owned enterprises in Shandong province(choose34sectors based on actual situation). In this chapter, I analyze12indicators of34sectors, using principal component analysis and obtaining four factors that affect the competitiveness of state-owned enterprises:the scale, operate capability, profitability, growth. According to these scores and the proportion, we can arrive composite scores of state-owned enterprises in Shandong province. And we found that competitive enterprises of Shandong dominant industrials mainly concentrated in chemical industries, mining and manufacturing, which is closely related to policies.Previous analysis is mainly about competitive and disadvantages, the last part proposes feasibly based on qualitative and quantitative analysis. In order to avoid duplication and red tape, the paper will divide the industries into light industry, mining, industrial raw materials, processing industry. Based on previous data analysis and actual situation, proposals with feasibility would be arrived in the guidance of the Eighteen and the "Twelve-Five Plan", promoting enterprise structure to update and the resource allocation to optimize.