The Research And Exploration To The Transformation Mode Of XL Corporation

XL was a Prison—run corporation which had made great historic contribution for the development and progress in prison-management area,in the era when prison had been connected with enterprise closely.Time passed by,the economic environment in our country had changed,then this kind of connection mode couldn't work well for the development of mordent enterprise any more.Later,because of the implementation of the “Enterprise Separation From Prison” mechanism,its economic profits had been promoted obviously.However,this “Separation” had not been implemented thoroughly ever since.Indeed,compared with common social-crop,Prison—run corporation had severe difficulties,such as over-burden of finance,multi-channel management,disabled capital-running mechanism,limited running power and unreasonable management mode,etc.These problems had caused plenty of waste of resources,made it hard to release the potential of corporation.By literature review on XL's development,the characters of XL as a Prison—run corporation and the necessity of the reform known as “Enterprise Separation From Prison” were both concluded in this paper,based on a great number of data and cases collected.To analyze the government's policy related,for example,“the belt and road” strategy,the adjustment toward providing-side of economic structure,“Chinese Manufacturing 2025”,Internet+,setting up of Chengdu FTA,the Euro-Chengdu railway,admission of national port's opening,changes of aged population and the structural contradiction about the farmer-labor employment,the author realized that XL's transformation and upgradation had been faced with not only opportunities but also challenges during the reform process.About the inner environment of corporation,XL's specialty,the resources its owned,the Corp's regime and strategy,were all discussed in it.The program about XL's transformation and upgradation had been made,by the references of PORTER 's mode of 5 powers,the Prison—run corporation's pathway abroad,and the experiences of local similar corps.In author's opinion,XL' strategy has to be concerned about centralizing,marketing,and HR.Centralizing-strategy,which means XL must focus on single products and market,maximize the Superiority of low-cost.Marketing-strategy,which means XL's products should be sold mostly to the Judiciary institutions,based on the relationship with government,including uniforms,work clothes,police-dressing.HR-strategy,which means XL has to settle the talents-shortcoming problem,to train the employee inside,make them good at enterprise-management as well as prisoner-supervising,to recruit the employee outside.The OEM-ODM-OBM developing model should be the best choice to XL.In the stage of OEM,XL ought to recommend advanced equipment and technology,provide machine-manufacturing for other superior firms,make an scale-effect,cut the cost as much as possible.About ODM,XL possess the ability to design and manufacture naturally to satisfying with customer's demand.As for OBM,XL will get an excellent brand of its own.So,author had confirmed that it is necessary to move forward to improve the enterprise structure,deepening “Enterprise separation from prison”,which covers institutionseparation,personnel –separation and finance–separation.Above all,the govern rules should be adjusted,accomplishing multiple stock right,improving the relationship between CCP commission branch and board of directors.To make sure that the program for transformation would be implemented successfully,the author raised several questions for being discussed.Marketing is located by the right side of “SMILE CURVE”,represented higher additional value and profitability.XL should set up the marketing department,give reasonable pricing,carry out cyber-marketing to build its own marketing net.And Self-innovation,collaborative-innovation,technology permission and services-outsourcing are all selected in the process of technology innovation,along the different stage of XL's development.Regarded to incentive mechanism to management staff,public office employee is divided from non-public employee,on different policy.As public office employee,they are tend to be incentived by excellence appraised,out-training opportunities,at last self-realizing.By comparison,financial-incentive would attach great importance to the performance assessment to non-public employee,and KPI too.The communication between prison and corporation is so important that contract regime and manufacture-coordinate meeting is necessary.Objective conditions may well be more critical than subjective conditions in Labouring –authenticating,so that the operation-staff would be sent to different post according to different labouring capacity.By the reference of Mathrow's theory to human needs,XL's incentive mechanism to operation-staff should be involved with penalty,executive,treatment,and economy.The economical incentive has several forms such as wages,products and insurance,etc.The research in this article will be beneficial for XL's development,promoting productive efficiency,improving products' quality.On the other hand,it can not only give some references on XL's transformation and upgradation,but also help other similar prisons to improve their transformation mechanism.