Electric Co., Ltd. Of Baotou Steel (group) Operating Status And Improved Analysis

Baogang (Group) Electric Company Limited is a wholly-owned subsidiary under Baogang (Group), formerly named Baogang Electric Repair and Manufacturing Factory. It is a small, complete enterprise, established under the planned economy. Its main business involves inspection and maintenance, including the maintenance of industrial-use electrical equipment at Baogang. It has relied on its mother corporation for 40 years, has no expert maintenance capability, no large-scale production, no products of its own, and no lack of achievements, but no competitiveness. With the establishment of the market economy and the entrance into the WTO, and especially the establishment of the modern enterprise system, Baogang (Group) has separated into main and accessory factories, reforming its system. This has forced Baogang Electric Repair and Manufacturing Factory to face market conditions. After these economic labour pains, the brand new Electric Company Limited was established in 1999. It is growing and expanding continuously. In 2003, the Electric Company reached profits of 470.22 million Yuan - the highest in its history. It owns the largest joint stock electric company in Inner Mongolia - Inner Mongolia Boguang Joint Stock Electric Company Limited. It has become a bright light among the non-steel enterprises of Baogang (Group) Company. From the former Repair and Manufacturing Factory to today's Electric Company, from 1 factory to 3 factories, its growth is worthy of study and emulation by other Baogang non-steel enterprises.The Electric Company is successful in the areas of managerial reform, technological innovation, product development, human resources development, and corporate culture building. But its system, its industrial structure, and its macro and micro environments are all open for deliberation. As the mother company of the Electric Company, Baogang (Group) faces a number of questions: What should it do for the development of the Electric Company? What kind of support can it give? What kind of path should it follow towards reform? This article will examine all of these issues. The success of the reform of the Electric Company will be an important lesson for other non-steel enterprises within Baogang (Group) Company.