Research On The Business Model Of ZJ Agricultural Company

The effective way to solve the problem of “agriculture,rural areas and farmers” has always been a major issue facing by the government.Practice has proved that promoting agricultural industrialization is an important measure to transform China’s agriculture from traditional style to modernized one.It can also effectively solve the poor connection between smallholder production and large market.All these are of great significance for promoting supply-side structural reform of agriculture,leading the moderate scale of agricultural development,stimulating the employment and income-increasing of farmers,and enhancing the development of new driving force in agriculture and rural areas.In the agricultural industrialization,leading enterprises,as an important part of participating in the business,play the leading role and promote the development of agricultural industrialization.This paper selects ZJ Agricultural Company,an agricultural industrialization leading enterprise,as the research object.The author gets a large amount of first-hand data through field research,studies the current situation and problems of its business model on the basis of consulting references,and finally puts forward countermeasures and suggestions for the optimization of its business model.At the beginning,the paper introduces concepts like agricultural industrialization management mode,interest linkage mechanism and the theory of agricultural industrial chain management.Then through analysis of ZJ’s business,the author finds ZJ is facing challenges like undiversified channel for funding,dependent cooperative,inequality of company and farmers,incomplete profit distrubution mechanism,loose tie of interests,weak constraint of interest,inability to expand,incomplete risk control system,narrow industrial chain and low added value of products.Then the author uses SWOT tools and analyzes the advantages,disadvantages,opportunities and threats of the model.By learning from other common agricultural industrialization modes in China and other innovative methods of ecologicalization of the business model and the “Internet +”,inspired by the agricultural industrial chain management theory,the author gives 6 proposals as follows: encouraging farmers to acquire shares with farmland and to conduct large-scale plantation,expanding the industrial chain and increasing the added value of their products,establishing a close tie of interests,setting up a risk control machanism,focusing on the training of leading farmers and developing smart agriculture relying on Internet.The author also gives 5 proposals to local governments as follows:establishing a investment guiding mechanism to promote the industrialization of agriculture,giving more guidance on funding and issuing more supportive policies,expanding the coverage of agricultural insurance and helping establish an agricultural risk control system,offering moretraining for talents especially those in new business entities,and introducing modern agricultural technologies.This paper not only offers guidance for ZJ but also provides reference for other agricultural companies with the same business model.Besides,it is valuable for leading enterprises to fully contribute to our agricultural industrialization and promoting the supply-side structural reform in agriculture.