Private Enterprises In Shandong Province Upgrade Path

After30years development,Nanshan Group has been from a village-run enterprises to dominated by non-ferrous metals,textile,electricity,real estate,tourism,finance,education and trade in one large group enterprises.The basic experience is that:the company has established a perfect modern enterprise system,and its corporate governance structure to ensure the democratization of corporate decision-making combined with their own advantages to constantly adjust the industrial structure,improve the enterprise’s development strategy.Enterprise technology and equipment is very important.Upgrading products has introduced new products to meet market demand and improves the value of the products.Nanshan Group has high quality products and services,as well as dealers to establish a relatively stable cooperative relations and other measures to improve the brand value,but also expanded its market share.Due to changes in the market environment and other factors in the process of transformation and upgrading of enterprises,corporate profitability has showed varying degrees of decline.Specific performance increase in operating income for the enterprise,and operating costs also increased,lower profits.The main causes of the problems are increased wages,raw material price increases,market decline,inventories,sales expenses and inventory loss increases.Therefore,the Nanshan Group’s sustainable development requires enterprises to deepen transformation and upgrading.Meanwhile,the industry supply and demand,the national industrial policy and international environmental changes and other factors also requires enterprises to deepen the restructuring and upgrading.Aluminum products industry has a broad market space.Nanshan Group in aluminum products processing and manufacturing industries have a clear competitive advantage,according to the smile curve theory.Nanshan Group is allowed only for research and development and brand channels.But it can not choose to switch the ways of processing and manufacturing relecation.Nanshan Group’sdeepen transformation and upgrading should be the choice smiling curve upward way.Enterprises should increase investment in research and development.Processing and manufacturing sectors should make the production upgrade efficiently. So that it can provide high value-added products and expand the market sales.All of above measures can make smile curve upward.The major policies and measures of deepening the transformation and upgrading as followed,organizational and institutional innovation,enterprises should improve the incentive mechanism,as far as possible to mobilize senior management personnel and technical backbone of the initiative to stable senior management team; comprehensively enhance the overall quality of employees and ability to mobilize the enthusiasm of all staff and creativity, continue to improve and refine the basic management system; Relying Nanshan Group’s aluminum industry chain advantages, it should continue to implement cost control and energy saving measures to save the expenses and guaranteed level of corporate profits.Make sure give shareholders a reasonable return, In technological innovation, company must rely on existing research and development platform for new product research and development to increase recruitment efforts to expand product development team.Do research and development of new products to expand production.Not only expand production capacity by using new projects, but also give full play to the enterprise industry chain advantages, explore existing capacity adjustment of product structure, improve resource utilization. The brand and market innovation, the company should adopt reforms marketing, make it greater use of contracting as outlet stores and explore the partnership and other means to expand the domestic market share. With high-end products, Nanshan Aluminum project put into operation.The company should be expanded accordingly aluminum products in overseas sales volume. Companies can take to establish joint R&D institutions abroad, according to the market demand for overseas’research and development for the local market demand for new products, or expand the scale of overseas investment.Overseas factories processing and sales, in order to break trade barriers between countries and improve Nanshan Group’s products in the market. Companies should make full use of both international and domestic market advantages, accelerate the implementation of mergers and acquisitions strategy.You can put part of the production which can be transferred to areas close to the market and raw materials production, so that both expanded the Nanshan Group’s brand, but also increase market share.By deepening the transformation and upgrading, company can improve business efficiency and profitability. But it still need to pay attention to the following risks:First,policy risks. It not only expand production capacity, but also strengthen the management, energy saving and environmental And protection work is very important. Second,Market risk company.To rely on the Nanshan Group Corporation brand effect, company should establish a market-oriented coastal radiation northeast, north, southwest, northwest of the sales network,while trying to consolidate the existing European, American and Japanese markets.Based on accelerating the development of the Middle East, South America, India, Russia and other emerging markets.Third,the supply of raw materials risk. By actively seeking to work with the company to co-invest and build factories in Indonesia miners to find the Americas, Africa and other ways deal with bauxite source procurement risk; Meanwhile, the company will also promote the production line to the high temperature alumina line to upgrade work to further reduce Indonesia’s dependence on temperature bauxite.Fourth, exchanging rate risk. Nanshan Aluminum should use a variety of foreign currency on hedging products and tools, while it also based on exchange rates,adjusting the ratio of export products to hedge exchange rate risk.