| Ⅰ Background of the subjectAs an enterprise directly subordinating to the China Packing Parent Company, the Chongqing Huacai Printing Industrial Corporation (Huacai in short hereafter), located in Chongqing, is mainly engaged in packing and printing. Being the largest packing and printing enterprise in the southwestern area of China, it is assessed as one of the fifty strong enterprises in Chongqing for four years running and an enterprise passed through the ISO 9002 quality attestation.Taking packing production and printing as key businesses, the Corporation has long been engaged in production of outside packages of China's famous liquors and wines of state level. But it now falls into dire straits in production and sale because of various factors. The paper analyzes the factors and inquires the trains of reform thoughts to turn the enterprise from loss to profit and bring it into good circulation.Ⅱ Basic condition of the Corporation1. Establishment of the CorporationIn order to keep pace with the historical development and bring their strong suits into full play, the Chongqing No.2 and No.3 Printing Factories were merged into Huacai Corporation in 1994 under the directions of the China Packing Parent Company and introduced an advanced production line of intaglio printing. This is a combination of two strong enterprises. But its development is not plain sailing as people expected; on the contrary, it meets with many difficulties and contradictions.2. Problems emerged in the running of Huacai Corporation(1) Market shrinkage;(2) Exorbitant sale cost of products and managerial fee, assuming a rising tendency year by year; (3) Excessively high assets-liabilities ratio.Ⅲ Analysis on the causes of the Huacai Corporation bordering on loss1. Exterior factors(1) Improper intervention of the superior governing department and forced combination make the enterprise take on heavy burden;(2) The capital owner changed capital income into administrative expenses. Exorbitant administrative expenses result in high production cost and weaken the strength for future progress of the enterprise.(3) Serious local protectionism and blockage policy cause steep decrease in marketing operation so as to affect sale income.(4) Exterior competition becomes more fierce. Facing severe market competition the Corporation cannot stand on the same horizontal line with competitors for the state-owned enterprises undertake many social functions and carry too heavy burden of taxes.2. Interior factors (1) After coalition of two factories, various contradictions cannot be solved in a short period in the merging process of enterprise administrations, personnel, and enterprise cultures of the former two factories, which increases the management cost. Re-composing of assets under administrative direction only paid attention to the appearance, but did not obey the objective rule, so that contradictions could not be well solved when they appeared.(2) Single product structure with low ability to resist market risk.(3) Unreasonable administrative configuration, overstaffed and lack of efficiency.(4) Single funds source, high assets-liabilities ratio with heavy debt loading.(5) The enterprise is overstaffed which limits and blocks its development.(6) The enterprise is overburdened with social guarantees.(7) Single exciting system cannot bring the managers' positive factors into full play but causes side effect instead.Ⅳ Basic consideration to solve the problems1. To improve modern enterprise system and standardize law person management structureThe establishment of Huacai Corporation does not mean the establishment of modern enterprise system, also does not touch the core - reform of property right system. It is an administrative action with improper operation system. This is one of the key reasons causing Huacai to step in straits.The key to set up standardized modern enterprise system is to pluralize stock rights, introduce non-governm... |
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