| According to the macroscopic policy of strategic structural readjustment of our country, the development strategy of medium and small-sized enterprises is faced with significant adjustment. Due to the fact there are many medium and small sized enterprises which account for a large part of the national economy, their performance has direct bearing on the healthy development of national economy , and their reform and reorganization will determine the success of strategic reorganization of the state-owned enterprises and the strategic readjustment of national economy. However, since there is some misunderstanding over " pay much attention to the large ones, ignore the small ones" in society, people can't reach an agreement on the reform strategy of casting off restrictions and revigorating the medium and small sized enterprises. Therefore, the medium and small sized enterprises which are in the forefront of the reform should have a clear understanding of this. To most enterprises, they should grasp the opportunity to withdraw. The enterprises with advantages should introduce a good mechanism during withdrawal so as to overcome. all kinds of malpractice, and become the real main body of market competition and raise its competitiveness. To the disadvantaged enterprises, they should accommodate the change by withdrawal.How does the state capital withdraw from the medium and small sized enterprises? There are various kinds of theories and models at present. As for the enterprises themselves, they should work out their own development strategy by adjusting measures to the local conditions and aiming at reorganizing and cultivating their competitiveness in the light of their own characteristics. It is impossible to adopt one kind of pattern to run all enterprises well. However, during the process of withdrawal, the adjustment of ownership relations and change of interest pattern are inevitable. Therefore, the study of the capital reconstitution strategy is very important. The article mainly analyzed the competition the KELIM-Co. faces through strategy managing the theory, combined with the macroscopic industry policy of the country. The paper also advanced the development strategy of reorganization and adjustment of product mix, market structure and capital structure with the help of capital reconstitution. The article consists of four chapters:Chapter 1: A brief introduction to KELIM-Co. KELIM-Co. has a bright history, but now it is struggling for survival.Chapter 2: A detailed analysis of the macroscopic environment and industry situation KELIM-Co is in. The chapter analyses the advantages and disadvantages, opportunity and threat KELIM-Co face by employing SWOT analytical method. KELIM-Co.'s products are in demand in market, but it can hardly survive and develop to a too heavy burden, shortage of cash flow, and a bad mechanism. The chapter also suggests that the developing strategy for KELIM-Co. should be reconstituting the capital of the company, introducing a new mechanism and new products, and invigorating the different parts. Chapter 3: A framework of the reorganization scheme and implementation plan for KELIM-Co. according to its present situation, its parent company and subsidiaries. Part of KELIM and its subsidiaries will establish a new company in cooperation with a foreign business which mainly deal in with sugar machines in the overseas market; the other part will be incorporated into its parent company to reduce the asset-liability ratio, which deals in paper machines. Chapter 4: An insight into the reform of the state-owned enterprises. The aim of reforming the state-owned enterprises by the government is to realize the strategic readjustment of the distribution of the state-owned economy and establish the market competition system; the aim of reform for the enterprises themselves is to enhance its competitiveness and maintain the staff's interests. Only through the coordination and integration of the interests among the state, the enterprise and the individuals c... |