Study Of Key Factors Of Chinese Private Enterprises' Strategy Planning

Corporate strategy has become more and more important for Chinese enterprises as the transformation of their management model from efficiency management towards strategic management. With the reform and development of China, national macroeconomics, industry conditions and enterprises themselves have all undergone and is continuously undergoing tremendous changes, of which the fast pace and the depth of the level as well as the extent of intensification constitute business environment and enterprises' own distinguishing features. In this scenario, issues such as how Chinese private enterprises identify the key factors of corporate strategy, which are the key factors of the strategy planning and how those factors play a role within strategy development and which rules and characteristics to follow, are urgently necessary to obtain theoretical progress. This thesis studies from both theoretical and empirical point of view on above issues.Corporate strategy development is related to the principle, tools and contents. It divides basic elements of the strategic planning into three categories as principal, tools and content. With the rapid economic development of China, the scale of Chinese private enterprise expands rapidly and the step of span of the growth phases is fast, however, it is of worrying the status of corporate sustainable development under the guidance of the strategy. In this paper, according to the empirical data, utilizing principle component analysis, it identifies 15 elements as the key factors among a number of basic ones of strategy planning, classified as four categories: Market opportunities, Control power, and resources and inertia mode.The paper argues that corporate strategy development is the outcome of the equilibrium among key factors. The change of the forces of four key factors on content, form, influence results in the change of corporate strategy planning, which is precisely the outcome of the equilibrium among the forces of these four factors. While the unbalance of those key factors will lead to the strategy transformation.The paper raises the issue of growth process of corporate strategy. During the four phases including business start-up, growth, maturity and transition period, the principle of the corporate strategy planning gradually transforms from individual to team while introduction of strategy think-tank team. While the strategy analysis and development tools are increasingly complicated, from an intuitive judgment of individual towards utilizing industry analysis tools and financial analysis tools etc. In terms of content, it not only designs corporate-level strategy but also designs and improves the strategy on the function-level and operation-level step by step.The paper proposes the Chinese corporate strategy transformation model on basis of the key factors. Based on proposing type of the corporate strategy transformation and corporate growth and strategy type model that Greiner proposed, it builds the strategy transformation logic model on basis of the key factors, which reveals the five stages for corporate strategy transformation: non-strategic business-driven period, development strategy clear period, functional strategy build period, complete strategy system establishment period, new strategic business selection period.This paper also illustrates the case study on the evergreen tree of private enterprises named WanXiang Group, analyzing the relationship between corporate strategy transformation and key factors to validate the argument of this paper on Chinese corporate strategy transformation and its model.The innovations of this paper encompass:1. Develop the framework of affecting factors to the corporate strategy, which analyzes from three perspectives including strategic principle, tools and content, and analyze relevant factors affecting to strategic content from three dimensions such as market, network and enterprises themselves.2. Abstract from general factors of corporate strategy four key ones including market opportunities, control power, resources and inertia, based on the literature review and empirical data, using principal component analysis and regression analysis.3. Propose corporate strategy growth process from the perspective of key factors. It analyzes the mechanism of how key factors affect strategy development, argues that corporate strategy development is the outcome of the equilibrium of four key factors. And the nature of the corporate strategy transformation is the process of breaking and rebalancing on equilibrium of the key factors, from which forms the model of Chinese private corporate strategy transformation.4. Analyze case study on corporate strategy development and transformation of WanXiang Group based on the key factor structure. It presents affecting mechanism of four key factors within the transformation of WanXiang Group's strategy so that examines underlying assumptions and models of the paper from the illustrated evidences.