Study On The Strategic Risks Of Overseas Cultivated Land Investment Of China's Enterprises

Under the background of ensuring global energy crisis, food crisis and financial crisis, food is regarded as industrial, financial and investment product. Most countries perceive food security as an important content of national strategy and public policy. The cultivated land has become a strategic global resources and the world has entered into a farmland race.The paper reviewed the research achievements both in domestic and abroad. The main reasons for global cultivated land investment are uneven distribution of global cultivated land investment, trade protection, bio-fuel production, and scramble for international financial capital. Base on the analysis about current situation, investment motives, both parties and cooperation method of global cultivated land investment, the result shows that overseas cultivated land investment has both positive effect and negative influence on global politics and economy. In order to regulate the behavior of global cultivated land investment, international organizations, host countries and investors should take corresponding measures to promote win-win situation for all parties.The main driving force of Chinese enterprises'overseas cultivated land investment lies in two factors, that is, potential crisis of China's food security and China's food security cannot be guaranteed by international food trade. With strengthening of China's economic strength, deepening of foreign agricultural aid and developing of agricultural technology, there is the political, economic and technological basis for Chinese enterprises to conduct international cultivated land investment, the profits of which are secured. Lastly it has concluded that the Chinese government should support enterprises to engage in international cultivated land investment, through which to safeguard the domestic food and economic security and global food security.At present, the subjects of China's overseas cultivated land investment include state-owned enterprises, private enterprises, and individual investors. The investment enterprise's scale is small and its strength is weak. Many uncertain factors exist in investment such as politics, policy, prices, exchange rates, etc. The enterprise's abilities of risk strategy investment and control are finite and project's sustainability and repeatability are lacking. The obstacle of Chinese enterprises'overseas cultivated land investment lies in the lack of the strategy of the Chinese government's overseas cultivated land investment. Chinese government should take foreign agricultural aid as breakthrough, use foreign exchange reserve to offer support and security for Chinese enterprises'overseas cultivated land investment, and help enterprises deal with investment strategy risk.The discussions in this thesis are centered on the core question of "how to distinguish, evaluate and control strategic risk", the research work regards the strategic risk of Chinese enterprises'international cultivated land investments include:Firstly, it has put forward the hypotheses for studying the strategic risk of Chinese enterprises'international cultivated land investments and identified the following six factors:enterprise strategy, external environment, enterprise resources, competition ability, organizational structure and operational process. It has applied fuzzy measures to construct a strategic risk evaluation index system which includes six primary and 27 secondary indexes.Secondary, it has used questionnaires to investigate the strategic risk perception and strategic risk factor evaluation of Chinese enterprises'international cultivated land investments, and 401 valid questionnaires have been collected. Descriptive statistics method was applied to analyze the respondents'perception on the risk of Chinese enterprises'international cultivated land investments, the fuzzy comprehensive evaluation method was used to evaluate this risk and the result showed that the risk is general for Chinese enterprises. Through effective questionnaire data analysis, thireen key factors having effect on realizing strategic objectives of overseas cultivated land investment are find. Among them, strategic target being indefinite, strategic orientation being unclear, war and civil strife, and international political and economic risks are focal points of strategic control of Chinese enterprises'overseas cultivated land investment. Government should strengthen policy support in order to encourage more powerful enterprise to making overseas cultivated land investment.Using "strategic risk flip-flop" principle, this paper reveals formation reasons of the strategic risk of Chinese enterprises'overseas cultivated land investment lies in the mismatching and imbalance between six factors such as enterprise strategy, external environment, strategic resources, competitive ability, organizational structure, and operational process.Thirdly, it has demonstrated the reasons for the strategic risks and set up a joint early warning model which includes the following six factors:enterprise strategy, external environment, enterprise resources and its competitive ability, organizational structure and operational process. This model was then used to do an early warning research on the change range and elasticity of strategic risk.It has put forward China's enterprise overseas cultivated land investment strategy risk control countermeasures from controlling risk management measures, financing risk management measures and internal risk control three aspects.It has put forward overseas strategic risk management countermeasures cultivated land investment from Overseas cultivated land investment strategy planning, investment subject cultivation, the establishment of overseas investment insurance system, policy support and government service, etc..Lastly it has summarized the research achievement and point out the may innovations and research insufficiency.