Outside On Behalf Of The Restructuring Of The Company In Pudong

International shipping agency is a small link in the chain system of international shipping business, but it plays an important role in our port services. With opening of Chinese markets and our approaching to join WTO, this relatively closed market is facing with never-experienced great changes. It is a pressing and hard task in the new marketing circumstance to survive and develop, to handle with these fierce changes in the company itself and the surrounding, in particular for those state-owned agency enterprises who have ever monopolized the market. Penavico Shanghai is the just model among these companies. She has contributed a lot to the development of foreign trade and international shipping of China, and her business is still running quite well. Nevertheless, Penavico Shanghai strongly feels the weakness deep inside herself and the severe threats in near future. This paper focused on Pudong company of Penavico Shanghai for purpose of searching the way to reform agency business of this company. It analyzed and discussed in many respects of SOE like Penavico Shanghai the problems of how to adjust for competition and how to correspond with the new circumstance. Firstly, it reviewed the history of shipping agency business in China and development of Penavico Shanghai. It analyzed the characteristics of shipping agency business and influence of macroeconomic policy to this market, performed a SWOT analysis of Penavico Shanghai, pointed out that Penavico Shanghai have to make reforms because of so many existing weakness of her in respects of market competition and development. Secondly, it described in detail the reform targets of Penavico Shanghai in her shipping agency business, and the difficulties must overwhelm in order to realize the reform targets; Thirdly, it selected Pudong company of Penavico Shanghai as the testing subject of reforms, reorganized this company, presented the astonished but practical suggestions of ownership adjustment and structure in business operation. Based on ESOP method, it proposed that all employees can hold the shares of Pudong company in order to tighten the interest relation between employees and the company itself, it personalized the service of Pudong company by taking rectangle structure in operation. Finally, this paper also gave some helpful ideas in other fields of running shipping agency business, and it admitted honestly the risks and problems may have after such reforms made. This paper will bring helps to other small SOE in business of services to establish modern corporate system and business structure for marketing competition when encountering great changes in their market situation.