East Power Equipment Engineering Company Development Strategy And Organizational Structure Design

With the establishment and amelioration of socialist market economic system, state-owned enterprises as the main body will be facing hotter and hotter competitions. We have to reinforce the steps of reform for survival and further development, especially in those parts leech onto the mother enterprise such as supporting and logistic divisions which may greatly increase the cost and extremely obstruct the development. If they are not peeled off from the mother body, not only those parts will face more and more critical questions but also the enterprise might collapse in the competition field. Penman focuses on the equipment department of Dongfang Electrical Machinery Co., Ltd, a typical state-owned enterprise, with problems exposed such as non-performing loans, overstaffing, low efficiency, poor service and demission of qualified employees, like a morbid lazy man who lies in the shadow of trees and enjoys the coolness. The enterprise leaders are keeping in searching for an efficient resolution to the critical question: how can they earn their own living? According to the general idea of reform in the company, the purchase and administration function shall be combined to the purchase center, and the other parts would be united as an equipment & engineering company, providing technical service of equipment maintenance for the society. Penman concludes that it is right time to break the ice shell of rigid and closed technical service system including equipment maintenance, which is born from system of planning economy. In the future, this system must be rebuilt as socialized, market oriented, and specialized to meet the requirements of competition. This article emphasizes in searching reasonable answers to following questions: How can the maintenance department be apart from the shield of matrix? Is there any inside and outside circumstances for a living? What advantages and embarrassment that they have? Are there any opportunities or challenges that they are confronting? How to build the right characteristics those enable a maintenance department survive in the market? What factors should be forsaken in the old system? How to find a way for survival and development? Combined with the state, local or guild policies and regulations for economic structure reform, the first three chapters of this article deeply analyses on the current situation of equipment maintenance and the specific enterprise macroscopically and microscopically as well indicating the factuality and necessity of building socialized, market-oriented and specialized enterprise. The article also discusses on issues of mechanical & electronic equipment maintenance, rebuilding, designing & manufacturing for special machine, and marketing which concern about the strategic development of the enterprise. In accordance with the advantage of techniques and performance, adapting capability and related resources, Chapter 4 of the article provides the strategic scheme for the newly built corporate, which should extend to digital-controlling alternate service of equipment and research of special equipment, besides the traditional maintenance of mechanic & technical equipment. Chapter 5 discusses about marketing and Chapter 6 analyses deeply into the realization of the new development strategy.