Study On The Transformation And Upgrading Of PN Products Industrial Company

Processing trade is an important way for every country to participate in the international division of labor in the background of economy globalization. During30years of revolution and opening, Chinese processing trade has developed steadily. It has contributed much to the increase of the national income, the growth of economy, the employment of labor, the introduction of foreign capital and foreign exchange income, etc,. Especially small and medium-sized enterprises (SEMS) are main force to be reckoned with in the powerhouse. They can not only satisfy the people’s growing and diversified consumer demand, but also can help create great national wealth. They are assistants and supporters of the large enterprises. And also are important supporters of active market, expanding employment and maintaining social stability. However, with the rapid development of Chinese processing trade, some serious problem have exposed among the small and medium-sized enterprises (SEMS). Such as low level of techniques, low effectiveness of increasing value, etc. As we have gradually entered the world market, with the influence of international and domestic economic situation in recent years, the traditional advantage of small and medium-sized enterprises (SEMS) has been offset. The nation government encourages small and medium-sized enterprises to transform and upgrade to adapt market demand and make greater development. Especially the worldwide financial crises in2008, many Chinese enterprises suffered huge impact and the processing trade industry facing the tough condition. The increasing tempo reduced from high rate to zero or subzero. Many small and medium-sized enterprises can not afford the high pressure, most of them facing the serious challenge in developing. So enterprise transformation and upgrading has become the only choice to most small and medium-sized enterprises.As advanced region of small and medium-sized enterprises in China, the small and medium-sized enterprises in Guangdong have certain representativeness. This research selected Guangzhou PN products industrial co., Ltd as an example. We discussed the problem of transformation and upgrading for small business. On the purpose of our study, first of all, we explained the relevant concepts and basic theory based on reading and deep thinking of the related literature and document. Then according to the detailed research and analysis of PN Company, we started from the basic situation of the company, and analyzed the motivation of transformation and upgrading. Furthermore, we discussed the possibility of transformation and upgrading of PN Ltd. Finally, we not only discussed the direction and way concerning the company transformation and upgrading, but the plans and implementation schemes as well in this paper.The creation significance of this paper is: we extracted the most suitable theory for a certain enterprise from the theory of the enterprise transformation and upgrading to guide enterprises transformation and upgrading. We chose PN company’s transformation and upgrading as a real example, using the theory and research results of management and other economics fields to elaborate the transformation and upgrading issue. It is a good example about the combination of theoretical knowledge and practice. Specifically, according to the four factors model of Boyle&Desai (1991) and the actual situation of PN company, we discussed and analyzed the reason of the transformation and upgrading of enterprises. Then we used the theory of value chain and smile curve theory and put concrete measures for the transformation and upgrading of enterprise. I hope the study has certain theoretical significance and social significance.