Study On Optimizing CAPI’s Civil Business Units Combination

China Aviation Powerplant Research Institute (hereinafter referred to “CAPI”) isa unique Institute combined R&D with the advanced science research in the fields ofsmall/mediunm-power aeroengine and helicopter transmission system. With thegeneral development strategy of “Military industry establish CAPI’s fundament, civilindustry push forward the development of CAPI”, CAPI’s civil industry shall copywith the backward management mechanism, uneven distribution of resources andcapabilities between military industry and civil industry, unpredictable externalenvironment and intense competition, etc.. it will be a valuable study subject in thispaper how CAPI-owned specific resources and capabilities could be compatible withthe variable business environment, and how to realize the sustainable growth andhealthy development of CAPI’s civil industry.This paper starts with descripting and analying the development history ofCAPI’s civil industry and its specific resources and capabilies. On basis of CAPI’sgeneral development strategy, the intensive investigation and analysis have been made,plenty of data and documents have been sorted out so as to establish a deepenedknowledge and analysis on each civil business unit viewing from industrialenvironment, market environment, competition status and business operation. Then,by the ways of applying the analysis tools of SWOT model and BCG Matrix to thestudy, and combining quantitative analysis with qualitative analysis, combiningpractices with theories, the paper has made the detailed analysis and assessment onthe external and internal business environment faced by CAPI’s civil business units,defined the business units to be give up or to be expanded, and put forward theoptimized integration strategy of CAPI’s civil business units, and designed thedevelopment strategy of core civil business units. Finally, the paper suggests a set ofmeasures to guarantee the strategy implementation in terms of management system,capital operation, remuneration stimulus, resources innovative integration, and brandstrategy.As CAPI is a military-characterized R&D institute, the paper selected CAPI’scivil industry as the subject of study, intended to explore the ways of developingCAPI’s civil industry by integrating the military prevailing resources into civilindustry, and drew on the experiences of development strategy of civil industry for a military-characterized R&D institute.