Study Of Mongolian Cashmere International Enterprise Management

Cashmere, known as "fiber diamond" and "soft gold", is the world’s most expensive andprecious animal fibers and also luxurious raw materials for textile industry. It is a layer of lightand warm hair developed from the roots of wool for the goats to survive harsh cold. The majorproducers of cashmere in the world are China, Mongolia, Iran, Afghanistan, Kazakhstan,Kyrgyzstan, Pakistan, Turkey, and other countries. Of all above producers, China is the largestone, with the production covering more than70%of the world’s total amount. Mongoliancashmere production accounts for about20%, and other producers around the worldcontributes the rest.Mongolia’s annual production of Cashmere is3500to4000tons. Although the countryhas more than40companies engaged in cashmere industry, however, in the present cases, noneof them reached all production. Most of them only run20%to30%of their highest operationcapacity. According to wool and cashmere exploitation balance sheet, domestic and foreigninvestment companies in Mongolia have only own37.7%and31%of the total raw Cashmereand wool material respectively. It is obvious that illegal cross-border transactions of cashmereand wool raw material are still common, for1100to1300tons Cashmere and800to1000tonsof wool raw materials in the balance sheet were missing. In terms of cashmere production,Mongolia’s potential productive capacity is only second to China’s. In such a circumstance,cashmere export has a vital significance to the country’s economy, production and the herders’well-beings.After more than20years’ development, Mongolia has established a complete cashmereenterprise system and won its place in international cashmere market. After a rapiddevelopment in1980s and1990s, the requirement for change in Mongolia’s cashmerecompanies is becoming urgent in21century. Due to excessive production capacity,inappropriate corporate construction, weakness in self-innovation and fierce competition fromhome and aboard etc., Mongolia’s cashmere industry is losing its momentum. In order topromote Mongolian cashmere business, it is necessary to conduct an in-depth reflection andsummary on the current situation of cashmere companies.This paper includes7chapters: chapter1is an overall introduction; chapter2introduces theoretical overview; chapter3gives an analysis on the Mongolian cashmere industries and major opportunities and risks facing the Mongolian cashmere industry; chapter4studies the operation of Chinese Cashmere company "Erdos" and conducts a compare study ofinternationalization of Chinese and Mongolian cashmere industries; chapter5analysesMongolian cashmere enterprise "Gobi’s" international operation, chapter6put forward aninternational operation mode for "Gobi"; chapter7is the conclusion and a future vision.