A Strategic Analysis Of The Restructuring Of Operational Public Institutions

The operational public institutions are important part of the three categories of institutions in China, and also a product of power delegating and market-oriented restructuring of public institutions in China. It is based on experience of economic reformation and breaks the constraint from a too governed system. Therefore, it plays an important role in invigorating the market.However, with the deepening of China’s economic reformation and management operation system, the traditional Operational Public institutions cannot meet needs of economic development. The restructuring of public institutions began in the 1980s gradually, and nine supporting documents including "Guidance on Public Institutions’ Restructuring from the State Council of CPC Central Committee’s" came out in 2011 July. These documents tell how to restrict and provide the provisions of the restructuring. The restructuring is a dual challenge or public institutions, involving internal operation’s transformation to enterprises and external economic environment’s transformation to market. Thus it requires the managers to restructure from a strategic perspective, involving a strategic analysis, strategic directions and strategic decisions.This paper applies the restructuring of the highway engineering public institutions in W City, Shandong Province as a case study. Firstly, it gives definitions relating the restructuring of the operational public institutions, and classifies theories relating the strategic management, especially the strategic analysis methods, like SWOT-AHP analysis, which is the basis of this paper. Following it, it introduces the general situation of reformation of the highway engineering institutions in W City and determines the one for case study. Through methods like field research, data collection and logical analysis, this paper makes a strategic analysis of the similarities among engineering institutions in W City from the external and internal environment. And based on analysis about the internal environment, a SWOT analysis is made about the restructured enterprises and the matrix elements and strength of SWOT analysis is confirmed through delphi method. After that, a SWOT-AHP model is constructed. The scores of SWOT-AHP model factors is determined by scores from experts and the computing function of yaahp v0.6.0 is applied to analyze the scores of factors insides the groups and between groups. The results of analysis will be tested conformably and ranked based on levels. Both the weight to the general objective from factors in computing models and scores of SWOT factors’ strength will be ranked finally and the final results will also be given. Based on both the strategic objective of restructured enterprises and the computing results of SWOT-AHP’s strength, the strategic choice of restructured highway engineering enterprises in W city is finally determined to be the SO strategy, i.e. a developing strategy. In the end, suggestions for the application of developing strategy are given according to results of SWOT-AHP analysis from the level of the government and administrative departments and the level of enterprises. Hope the result of this paper will make a contribution to the long-term development of restructured highway engineering enterprises in W city.