| This thesis combines the developing history of chain operation and current situation of the development in our country firstly, defines the definition of chain operation and points out its essential. From the angle of the evolution of business organization, the deep discussion on production and development of chain operation is given. On this basis, it combines the actual conditions of our country, puts forward the main macro & micro factors which have influenced upon the chain operation development, and points out that our country has already been qualified to develop chain operation on a large scale to a certain extent. Though analyzing the successful chain management mode both at home and aboard it contributes to developing our chain operation undertaking. The physical distribution not only is very important in chain operation but also can not be ignored more and more in modern economy. It has become a pharmaceutical excitant of promoting the development of economy. The article does the analysis of the focal point to these. All the research ascribe to how to develop our undertaking. It has compared detailed argument to these at the end of the article.The thesis has quoted some concepts of the evolution of business organization such as division labor transaction cost assets specificity economics of scale and scope, and points of physical distribution, supply chain management. The thesis focuses on the certainty emerging and development in chain operation, internal & external environmental factor analysis, research of the modern physical distribution and some questions of the chain operation development in our country. It has said little about relevant the theories of chain operation, but focused on its essential research and thinking of realistic problem correctly. Especially, it puts forward the mode and tactics that China develops chain operation. This thesis could give reference to theoretic analysis, and has practical use to the running of chain operation business as well.
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