Appraisal And Optimization Of ZQ Group’s Industry-and-finance-integration

Manufacture is the cornerstone of modern industry.Its development reflects the progress of a country’s productivity.As a manufacturing giant,Chinese government has always been taking manufacture as top priority.As China transforming from a manufacturing giant into a manufacturing power,the competition among domestic manufacturing enterprises has entered an era of comprehensive capability competition.With the unswerving advance of China’s reform and open policy,worldwide competition would be a new and great challenge to the overall capability of domestic manufacturing industry.Facing these challenges,the competition among manufacturing factories has been developed from technique,quality and market to a more comprehensive level,among which integration of industry and finance is an important factor.Domestically,companies in the same industry have been continuously deepening the integration,which forms a financial system covering the whole industrial chain and effectively supports the development of conglomerates.Internationally,the integration of industry and finance has been an important superiority for multinational corporations such as GE in global competitions.Therefore,it is an important method to improve companies’ comprehensive competitiveness to construct an effective industry-finance combination system based on their own development phase.Based on domestic and overseas papers and investigating some domestic enterprises’experience of industry-and-finance-integration,this article builds a comprehensive evaluation index system creatively.Beginning with the effectiveness of industry-and-finance-integration and covering the cost of financing,resource allocation efficiency,diversified business,financing constraints,industry cooperation and performance coordination six fields with 18 indicators,this article select ZQ group as an example to conduct our evaluation.Based on the evaluation result,this article discusses the main problems facing ZQ Group in the industry-and-finance-integration,and analyses reasons that lead to these problems from the perspective of conglomerate and financial entities by interview.Firstly,due to the absence of unified and clear strategic,control mode and management mechanism,the development direction of the integration of industry and finance is unclear and the systematic developing ability is weak,which is unable to support the professional and efficient developing requirements of integration.Secondly,the lack of talents and the weakness of technology result in the deficiency in financial service and market competition.Lastly,because financial service field and operations are constrained,internal financial institutions failed to effectively ease the financing constraints and over-concentration risk of the conglomerateFinally,starting from the reasons resulting in those problems,this article proposes the strategy to improve ZQ Group’s industry-and-finance-integration effectiveness.This strategy covers strategic planning,management mode and structure,talents management,financial technology,mechanism optimization,etc.,aiming to provide some reference to ZQ Group’s industry-and-finance-integration practice.This paper takes the point that,being faced with increasingly intensified competition among production industries,especially automobile industries,ZQ group is required to introspect its development.Improving competition is depend more on a comprehensive competitive strength in the whole industry chain than improving product development,quality improvement and the lean controls only.As conclusion,ZQ group needs to improve the level of industry-and-finance-integration to satisfy diversified financial needs from industrial chain customers.As this paper selects ZQ Group as the single research object,the strategy could be constrained,and a more comprehensive and in-depth study would be conducted in the future.