Management After The Restructuring Of State-owned Enterprises To Rebuild

Nowadays, China is enforcing the construction of micro-economy. On one hand encouraging the development of private enterprises, and on the other hand pushing on the reform of state-owned enterprises. The reform of state-owned enterprises means that a lot of them will withdraw from the competitive field in order to promote the whole efficiency of state-owned assets. Accompanied the reform, there are some medium and small-sized state-owned enterprises will transform its economy system, which is a good opportunity for private enterprises to expand through M&A, the state-owned enterprises, after all these state-owned enterprises have the same basis which the private enterprises can't compare with. XX Co., Ltd. is a private enterprise through the state-owned enterprises transforming from XX Company under such macro-economic background. The inefficient management of state-owned enterprises essentially results from the principle-agent relation that comes from the vague property rights and absence of the proprietary. After the state-owned enterprises transform its economy system, the enterprises property rights can be distinguished clearly. But many of them don't improve their management efficiency because the inefficient management model has some inertia. After it transforms its economic system, the enterprises don't build an effective management system to change the inefficiency. This is to say; the most difficult transformation for state-owned enterprises' reforming is how to change the inefficient management into flexible and efficient one, which not only adapts to the market but also to the enterprise actuality. In XX Co., Ltd. some inefficient management inertia formed in state system continually operates and can't meet the demand of market competition, so its internal management model has to rebuild.The new management model is diversified because the every enterprise has its characteristics and every industry has its different market demands.So, this paper has no intention to look for a common management model suitable to all enterprises, which does not exist. This paper just wants to explore a management model on the basis of stated-owned enterprises transforming its economic system. This management model is adapted to the facts of XX Co., Ltd. and to the characteristics of its management, industry competition. On the basis of clear property right and standard structure of corporation administering, the management reconstruction model of XX Co., Ltd. has two steps: at first, confirming the strategy in line with its internal and external environment; secondly, according to the new goal, reconstructing its management model. The XX Co., Ltd. builds its special internal market management model, which matches with its characteristics and strategy. According to the different duty of the departments, this management model is to establish a market transaction relationship among the departments and to imitate external marketing transaction mechanism. Five parts constitute this article:In the first part, presenting the managerial questions faced by the enterprises which has transformed the state-owned economic system.In the second part, presenting the strategy of XX Co., Ltd. and pointing out the internal management mechanism required by its strategy. In the third part, advancing the thoughts of XX Co., Ltd. to reconstruct the internal management mechanism is to establish internal market management. In the fourth part, introducing XX Co., Ltd. builds the internal market management mechanism. In the fifth part, the process and effects of this management reconstruction are summarized.The case of XX Co., Ltd. collected by the author from the state-owned enterprises transforming the economic system to reconstruct the internal market model. So it is a live case.This article has the important practical significance. At present it is a common phenomenon that the medium and small-sized state-owned enterprises retreat from the competitive fields. The...