The Research Of The A Company Which Process Raw Materials On Client's Demand In Jiangsu Province

Since the reform and opening-up policy,by depending on the superior location advantages,sufficient and cheap labor and a sound infrastructure,the processing trade enterprises of the Yangtze river delta regions make an important contribution to the region economy development through participation in international division of labor under the vigorous support of our country.The company which process raw materials on client's demand normally improves the international competitiveness of China's processing trade by means of relying on low-cost participation division.However,with the economic development of our country,on the one hand,because of the optimization and upgrading of industrial structure,the proportion of capital intensive foreign trade and technology intensive foreign trade is increasing year by year in recent years,and the proportion of labor-intensive processing trade is dropping year by year.On the other hand,the traditional comparative advantage production factors which support the Yangtze river delta processing enterprises are gradually weakening,for instance,the tighten supply costs of the labor is rising.Along with the unfavorable international economic environment,the increasing speed of domestic economic slowdowns.As a result,there is an increasing survival pressure for the the company which process raw materials on client's demand of this region.For the traditional comparative advantage in processing enterprise is abating and the endowment of the new capital,technology and knowledge production factor is not abundant,that is to say,the new comparative advantage has not been formed,it has an important practical significance to come true the survival and development of the enterprise under such a background.Because there are a large number of difficulties for the skipping transformation and upgrading for the enterprises which process raw materials on client's demand,the enterprise should averse scale weakness through the cooperation and reduce production costs by means of scientific production,at the same time,improve product to increase the added value and improve the personnel management so as to increase the production efficiency,these progressive upgrading and promotion may lead the enterprises to participate the international division processing production via making full use of the traditional comparative advantage.Thus,the enterprise is capable of accumulating the capital,knowledge and technology in the process of participating in the international labor division,meanwhile,seeking transformation opportunity in the changing economic development.A company in Jiangsu province is a typical enterprise which process raw materials on client's demand,which mainly engages in luggage production.It's production is conducted in the form of "OEM",which the raw materials are mostly from the last receipt enterprise and it has around 600 labor personnel.Firstly,this paper studies the related theory of processing trade and processing production,and analyzes the the necessity to improve and upgrade the A company through combining with the economic environment and present the development situation.Then,this paper analyzes the A company's upgrading path from the cost,industry and management,which is according to the real problem of the enterprise cost,industry and management,and the restricting factors of the cost,management,market environment,product and capital,and technology.This paper adopts a variety of research methods,such as literature research,case analysis,empirical analysis and linking theory with practice to comprehensively and objectively analyze the present situation of Yangtze river delta service processing enterprises on the basis of the Yangtze river delta service processing enterprises.Finally,this paper makes a delicate analysis for the corresponding development measures and upgrading path for A company,and hope to provide a kind of upgrading option for the Yangtze river delta service processing enterprises.