| A joint-stock enterprise invested jointly by the 10th Institute of CETC and its employees, Chengdu Spaceon Electronics Co.,Ltd.(hereinafter called Spaceon) was founded directed by the policy "guarantee military production and transfer civil production"of the Central Committee of the Communist Party of China in the late years of 1990s when the reform of scientific and technological system has been performed. This paper tries to answer the following question: what makes this corporation develop healthily on the way from loss-incurring to making profit. In other words, this paper tries to conclude the KSFs(Key Success Factor) leading to its success through describing the development of the corporation, in order to provide suggestions for the corporation to plan future development strategy and guarantee its position in competition. Based on this consideration, this paper is divided into three major parts. The first part describes, from the view of history, the background and development of the corporation; the second part emphasizes on the discussion of KSFs for the corporation to offset up the deficits and get surpluses; In the third part, suggestions are given for the corporation how to effectively avail KSF for development strategy. The essence of this paper is KSF. A theoretical hypothesis related to strategic management, the concept of KSF was first brought forward by an American scholar DANIEL in 1960s. In his opinion, most enterprises have three to six KSFs. These KSFs must be grasped, for a corporation to succeed. Study on the KSF of a corporation has been an important field of enterprise strategic research. Since the implementation of reforming science and technology systems by the Central Committee of the Communist Party of China, a large number of research institutes experiencing the planned economy system have been transferred to enterprises in succession. However, because of long been existing in the planned economy system and being accustomed to the operation mode, these institutes are not enterprises but so called "corporations only with the name"even if they were transferred. During the development in market, many such corporations disappeared, but few rose from failure. The Spaceon in the early time was the same as these corporations. But differently, Spaceon, facing defeat, carried out joint-stock reform ,set up the market-oriented product development strategy, established the inspiring system with performance as center for talents, and offset up the deficits and get surpluses at last. So, the three aspects, the joint-stock reform, the market-oriented product developing strategy with market as direction and the inspiring system with performance as center for talents are the KSFs of Spaceon. Although much challenge will be faced by Spaceon, its success is worth felicitating. On this point, its experience is typical. The significance of studying and summarizing the KSFs of Spaceon exceeds the corporation itself and is referable for all such enterprises to overcome disadvantages and become the real main body of market in socialism market system. Based on this purpose and consideration, this paper is arranged as follows: Chapter 1 reviews the KSF theory so as to establish the theoretical foundation and analysis framework. Chapter 2 describes the historic background of the founding of Spacon. The reform of science and technology systems raised by the Central Committee of the Communist Party of China and the reform route of "guarantee military production and transfer civil production"by former Ministry of Electronic Industry, are the macro background underwhich Spaceon was established. The grim competition in the same lines and the reform of procurement system in military product market, as well as the great lure of civil product market, form the small environment. The purpose of analysis of the two aspects is to show that the establishment of Spaceon is the result of large-scale research instates implementing the polices of the Central Committee of the Communist Party of China and the former Ministry of Electronic Industry, and also the essential product of the reform of the management systems of science and technology in a certain period. Chapter 3 shows the development history of Spaceon form 1997 to 2001. This chapter is based on the financial data from 1997～2001. The loss incurred in successive 4 years from establishment of Spaceon to 2001 was about RMB 23 230 000Yuan. Large gap exists between the reality and the idea of the employees of Spaceon. This paper lays emphasis on analysis of the reasons of the loss, operation mode, etc. This paper tries to explain the truth that an enterprise with transferred system and talent advantage may not always win the market in competition. Chapter 4 covers the discussion of Spaceon's joint-stock reform and the market-oriented product development strategy with and the inspiring system with performance as center for talents established by administration. In this chapter, the various attitude of employees towards the system reform is firstly described to demonstrate that changing the traditional ideas cultivated in the planned economy system and realizing the renovation of idea and system are very difficult. Also emphasizes the management and strategy idea transformation of the administration of Spaceon and the update of practice operation methods. Chapter 5 shows with the financial data, the operation situation after the February of 2002 when the corporation began to step into good state. This chapter tries to demonstrate that fundamental change can take place and rebuild the corporation can be realized once the idea is changed and... |
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