Research On The Strategic Transformation Of China's Old-fashioned Enterprises

Chinese time-honored enterprises which organically grew in China business development history were generally initiated by folk businessmen,closely related to daily consumption,by virtue of good reputation for product quality and service.They won the long-term consumers' identity.In the crossroad of economy transition,the importance of consumption is getting more obvious in nowadays China,it's clear that researches for Chinese time-honored enterprises' history and current situation will help to understand our consumer goods industry development context,and also help to offer the solution to enhance social spending.Chinese time-honored enterprises still have a high reputation,but compared with the international some large-scale consumption goods enterprises,they have apparent shortcomings,such as few product category,small enterprise scale,limited brand influence,etc.Mentioning Chinese Time-honored Brand,consumers will generally connect them with "fine quality with low price" tag,and rarely associate them with high-grade brand image;at the same time,the rise of network economy has brought opportunities and challenges for time-honored enterprises,now it's the time for them to get a "leap" on their company strategy.This paper mainly study Xie Fuchun(as the representative of Chinese time-honored brand enterprise),from its history,organization structure,enterprise system and strategic positioning,and analysis the main problems which exist in the development process of the Xie Fuchun,and from the view of strategic management for the proposed scheme of strategic transformation.This paper studies Xie Fuchun,the first cosmetics enterprise of China,by interviews with staff,studying relevant literature on Xie Fuchun business history and the current development situation,to collect information,and obtain current problems Xie Fuchun faces in the process of development by questionnaire survey and sampling survey.On the basis of above study,this paper tries to find out possible solution.Firstly,this paper reviews dominant academic theories on strategy management,and include the influence of network economy on the strategic management concepts in the theory framework.Secondly,by comparing with the international cosmetics brands,it tries to discover the cause of China's time honored brand cosmetics enterprises fell behind.At the same time,with the support of Xie FuChun's enterprise history analysis,its internal organizational structure and functional departments,this paper concluded Xie Fuchun's advantage and weakness with the combination of external factors of Xie Fuchun,using SWOT analysis to design and select Xie Fuchun's company strategy.At the last part of this paper,it presents the strategies implementation proposal.This paper argues that the Chinese time-honored enterprises face the changes of the times and the market competition,they should take the strategic transition through three aspects of the product,service,value connection,and comprehend the demand of consumers by the use of advanced management system and network information technology,the Chinese time-honored enterprise will be able to enhance internal organization of the system,external partners cooperation mechanism,so as to continuously improve the core competitiveness of the enterprise.