Operation Mechanism Of High-tech Agricultural Companies

As a kind of system, operation system determines management performances and competition strength of a company, it is also the important factor to set up and perfect the socialist market economy system. Therefore, any research to modern companies'management theory and establishment socialist market economy system is incomplete without the study of operation mechanism of company. Operation mechanism of Hi-tech agricultural companies has such characteristics as high risk in operating, decisiveness of human capital, different stages of management strategy, high sensitiveness to information and the close correlation with agriculture and peasants, etc. Starting from new development stage of agriculture and the current situation of Hi-tech agricultural companies, basing on foreign modern management theory and Hi-tech agricultural company operation experience, this paper defines Hi-tech agricultural companies and operating mechanism of company. Then it studies Hi-tech agricultural companies and their operating mechanism, and attains the characters of Hi-tech agricultural companies and their different operation from traditional companies. All of this establishes theoretical foundation for this research. Secondly, the papers studies financing mechanism , technology innovation mechanism, incentive mechanism and capital operation mechanism separately from the principle and establishment of operation mechanism according to the main problems that the companies facing in seed period, establishment period, expanding period and mature period. At last, the paper studies the mechanism of risk-management. the risk-management is quite essential for the company at each development stages. It is necessary to establish scientific effective risk-management to guarantee perfect operation and continuous management. Chapter 1, This chapter explains study background, purpose, meaning and methods of research. It comments the related studies home and abroad, and put out the possible innovation of the thesis. Chapter2: This chapter is about theory analysis of Hi-tech agricultural company and its operation mechanism. Starting from the characteristics such as nature, relation, periodicity, weak quality of the companies, and the restrain of key human capital, the paper differentiates the companies into direct mode companies and indirect mode companies. Then it divides the mechanism into entity mechanism and adhering mechanism. Entity mechanism which is the "body"of operation mechanism includes goal mechanism, production factor mechanism, shifting mechanism. Adhering mechanism which become " nerve " of the operation mechanism is formed by decision-making mechanism, incentive mechanism , tied mechanism and development mechanism. Chapter 3: this chapter is about the financing mechanism of Hi-tech agricultural companies. Proceeding from the characteristics of fund—intensive and skill--intensive, the paper analyses that the essence of the company'financing mechanism is to utilize financing tools to raise the fund from the society. Then, it explains that how the companies establish efficient capital raising mechanism through choosing different capital suppliers, applying different methods to attract capital according to the situation of capital supply and capital need in different development periods. At last, it brings forward the measurements for the Hi-tech agricultural companies including attracting venture capital, acquiring loan from commercial bank and issuing stock in the subsidiary stock market. Chapter 4: Operation mechanism in Hi-tech agricultural company. Internal management strategy and external strategy are the two important strategies existing in the company operation. They are also named product operation and capital operation. Continual operation and long-term development for a company can not get away from these two strategies, because it will not get big and strong only through internal fund without acquisition and merger. Life cycle lies in the development of Hi-tech agricultural companies. So a company should have different strategies of capital operation in different periods. The core problem for a Hi-tech agricultural company is financing in the first three periods. And the capital operation includes two aspects in the advanced period. One is withdrawing of venture capital; the other is optimization of capital structure. Therefore, this chapter will introduce the two mechanisms: withdrawing of venture capital and optimization of capital structure in Hi-tech agricultural company. Chapter 5: Mechanism of the technology innovation in Hi-tech agricultural company. The technology innovation in agriculture mainly depends on the biology technique, with other techniques such as information technique and so on. It has long cycle and high risk. Agricultural biology technique has the character of public product. Its application is affected by local environment and land use, so its spreading is slow. Hence, the Hi-tech agricultural company should establish the mechanism of the technology innovation according to the character of agricultural technique. This chapter concludes the modes of technology innovation in agriculture as: derivation mode, centralization mode, cooperation mode and authorize-agent mode with the analysis on supply mechanism of technique factors. Then it evaluates the current modes in China and promotes the responding measurements.Chapter 6: Incentive mechanism in Hi-tech agricultural company. This chapter takes authorize-agent theory and human resource theory as the theoretical foundation of the establishment of incentive mechanism. Firstly it studies the incentive mechanism according to the character of property right of human capital, especially the relation between the technical human capital and the systems of property right and distribution. Then it analyzes the defects existing in the traditional distribution system. At last, it puts forwards the specific applications of stock incentive program in the Hi-tech agricultural companies. Chapter 7: Risk-management mechanism in in Hi-tech agricultural company. The operation of Hi-tech agricultural company has high risk. It includes system risk and non-system risk. The system risks in the Hi-tech agricultural companies in China mainly include technique risk, market risk, capital risk and management risk. The non-system risks mainly include nature risk, policy risk and human-resource risk. The managers face the special risks with the special economic system and special production mode. Therefore, the companies should establish risk-management mechanism which can forecast, identify, prevent, shift, disperse and control risks.