The Yuanda Company Annex Of Qingan Thermoelectricity Factory

Since the Fifteenth National People' s Congress, the annexation and rearrangement of the state-owned enterprises ,as the top priority in developing our national economy) has entered a new phase. By way of rearrangement, annexation and share-holding system, the pace of revitalizing the small and medium sized state-owned enterprises is being quickened, which provides those enterprises with an historic opportunity to develop and expand. But currently, many of the small and medium sized state-owned enterprises are confronted with numerous difficulties in operating, and are running inefficiently with increased liabilities. As a result, production on large scale can not be realized, significant technical innovation is difficult to carry out, the products are not capable to compete in the markets, the government is suffering from too heavy a burden, and the enterprises are faced with a great challenge in surviving. Thus it is essential to adjust and rearrange the property right and the mechanism, making the property right more perspicuous, the organization more complete and the rate of the liabilities more acceptable, raising much more capital, perfecting the financial system, decreasing the cost, and finally increasing the adaptability of the enterprises to the markets, making them more competitive, building up and improving a modern administrative pattern and rearranging and optimizing the assets.What is investigated here in this case is how a typical strategic reorganization was carried out in which one state-owned enterprise annexed another. Introduced in first part are general situation and the operation of the two enterprises, the emerging of the purchasing intention, the formulating of the strategy, the planning and theexecuting of the project and its result. In the second part, the annexation strategy is analyzed and evaluated, the project analyzed thoroughly, the reason of failing in the annexation discussed and summed up objectively. Also in this part, another outcome of the project is provided audaciously, together with an assessment, and thus leading to the conclusion and some constructive notions.