Performance Evaluation Of Enterprise Strategic Transformation

With the deepening of the economic system reform in our country causes accelerating the upgrading of industrial transformation.The era relying on low cost for Chinese electrical appliances industry becoming the world's manufacturing center is gone forever.The phenomenon such as labor and land costs rising,product homogeneity,overcapacity,price war,and lack of core technology,cause enterprises hard to obtain the lasting competitive advantage.Thus,for long-term stable development,enterprise strategic transformation is imminent.But,in the academic research and enterprise practice,usually,implementation and evaluation of enterprise strategy management is in a state of separation.However,the performance evaluation is one of an important part of enterprise strategy management.Therefore,both in academic and practice,it is urgent for enterprise to combined its performance evaluation system with strategic management.Therefore,the author tries to evaluate the enterprise strategic performance during the period of transformation by performance evaluation tools.In this paper,the theory mainly includes two parts: the enterprise strategy and performance evaluation.Enterprise strategic has a lot of study,but the research of strategic transformation is lack of theoretical framework compared with wide application in practice.And the performance evaluation has developed gradually from the traditional financial index evaluation into strategic performance evaluation.Two evaluation tools: the balanced score card and economic value added have been widely used and continuous improvement.This paper used the method of case study to analysis the strategic transformation of the Midea group.First of all,the author analyzes the reason of the strategic transformation.Reasons concern two aspects:the influence of the change of external environment of the Midea group;what its advantages and disadvantages are,when compared with its competitors as its internal environment.We can summarized those reasons for that: the Midea group operating efficiency is not high;the quality of profit growth is not high;it is unable to form an absolute competitive advantage in the industry.The Midea group proposed "leading products,drive efficiency" as the strategic objectives,and see products and customers as the center consistently for strategic transformation.From 2011 to now,the Midea group has taken many strategies,such as adjustment of product structure,focusing on research and development,leaning organizational structure,marketing model innovation,supply chain process changes.Therefore,the author used four dimensions of the balanced score card to evaluate the performance of the Midea group on the basis of its transformation strategy and we can come to the conclusion that it has been basically achieve its goal.