The Ponderation On The Strategic Transformation Of The Chinese Large-scale Private-owned Enterprise And The Corporate Governance

The reform and opening-up policy is like the good rain that nurtures thousands of private-runing businesses and leads the entrepreneurs to achieve their dreams of wealth. At the moment of stepping on the30th year of reform and opening-up policy, we can see very few of the early phase groupofentrepreneurs survive. The brilliant achievements of the entrepreneurs also belonged to yesterday. However, the New Hope Group is an exception. It keeps its flag flying for a long time. There must be some magic codes.China’s enterprises face rare historic opportunity when entering the new century, but the opportunity is also a challenge,"change " is a double-edged sword, the key is how to use the opportunity. New Hope Group has developed from the little four-brother-running family workshop into an international large-scale private enterprise group. Its products is given priority to farming herd, also to the financial investment, real estate construction, chemical raw materials and other industries. New Hope Group possesses strong innovation ability that can continue to learn new matters, its successful experience is of practicability. So this paper’s background is based on the age, policy and New Hope Group’s development situation.We are now in the first20years of the twenty-first century, a key point time of China, it is a historical period of adjustment after thirty years’reform and opening up, as well as an important internalization period of China’s large-scale private enterprises whichadapts to the internationalization and diversification. At this moment,it is very necessary and important to arrange corporategovernanceresearch theory and strategic change research theory systematically, comb them with related theoretical analysis, and takeNew Hope Group as an example to analyse the strategic change theory and corporate governance theory’s "seeking and acting for truth" relationship. To take advantage of this research, the author hopes to take new research directions in the relationship between corporate governance theory and strategic change theory, andsharesNew Hope Group’s successful experience to other enterprises.This paper is based on the theory of strategic change theory and corporate governance theory. We all know strategy and management change are very important to an enterprise while it’s usually uneasy. The most common situations are like these:The top leaders consider the strategy as a very macro thing while middle-level leaders can’t divide the strategy into several specific goals to put into force and the lower employees think the strategy as metaphysics. As a result, the strategy of the enterprise is impracticable. So the enterprise follows the old routine but not the strategy, which hardly keeps pace with the times. Strategy, resource, plot and project, there isn’t big distinction in the connotation of these words except the distinction in degree. It is the dialectical unity on strategy in micro and macro. The smooth of strategy and management of change in an enterprise needs manpower, material resources, financial capacity and every other resource inside and outside can be easily transferred. Corporate governance is a system which values management and control. Company governance structure is a regulation on rights and benefits distribution among owners in an enterprise and stakeholders. So, the word "corporate governance" is rich in content. It’s not only a representation of the process of command and control, but also a governance about the rules and relationships of an enterprise. Corporate governance isn’t a right or wrong judgment. Nobody can tell which is right and which is wrong. But it has a model of relative main trend in different period which has connected with both the times and the environment in and outside the enterprises.When studying strategy and management of change and corporate governance deeply, the author has found there is connection between them. In an easy way the connection reflected in a combination of knowing and doing dialectically. In the author’s opinion, company governance structure is a reflection of an enterprise’s distribution of power.Corporate governance is company’s operational situation under the inside influence of the ownership structure, board of directors, managers’ on the company management and the outside environment. It is the whole procedures of business management from microcosmic level. Company governance structure directly influences strategy formulation. Strategy formulation directly influences the procedures of corporate governance as well. Strategy and management of change is the knowing process of the inside and outside environment by the entrepreneurs and other stakeholders, which emphasizes on the understanding and anticipating of the change. Corporate governance is the doing process by all the people in the enterprise, which emphasizes on how to do and specific controlling. Strategy and management of change and corporate governance are important to enterprises. Theyshould be studied together to show the dialectical of "seeking and acting for truth ".Studying either of the two alone will end up with logically and practically incomplete. During the progress of "seeking and acting for truth", entrepreneurial spirit is the most important variable. It plays an important role both in strategic change and corporate governance.Bases on all the above logics, the author divides this paper into six parts: introduction; literature review;current situation and problems of Chinese large-scale private enterprises; New Hope Group’s strategic change;New Hope Group’s corporate governance; the summary of the relationship between strategic change and corporate governance.There are three main parts in the introduction part. They are:the reason of theme selection, the significance and purpose of the research and research method and research framework. These are basis and root of this paper.Relativeliterature reviews are in part two. There are researches on the corporate governance, entrepreneurial spirit and strategic change. This part provides solid ground and more inspirations for the new research.The third part isabout analysis ofthe present situation and problem to Chinese large-scale private enterprises. Based ontrace to the source of the overall situation onstrategic change and corporate governance, manifestthe importance ofthe change in corporate strategy and corporate governance, but also reflects diseases on Chinese large-scale enterprises. Only to find the antidote against the disease, in order to make useful "prescription" onChinese large-scale enterprises.The strategic reforms of the New Hope Group are in part four. It includes four important strategic changes of the New Hope Group, the strategic decision model and the reflection and summary of its success. The success in strategic changes of the New Hope Group has more to do with the personal charm of Liu Yonghao and the outstanding entrepreneurial spirit as well. The research of strategic change is the knowing of the enterprise in logic. Part five talks about administration of the New Hope Group. The author will start the governance structure of New Hope Group to analyse the specific implementation of the group. The author will also analyze the constriction and management model in corporate governance of the group. The evolution process and successful enlightenment of each is deeply analyzed. In the end, the corporate governance of the New Hope Group is analyzed and summarized. The author has special stress on analyzing the importance of entrepreneurial spirit in corporate governance. In the author’s opinion, the corporate governance is doing part in logic.The summary of the relationship between the strategic change and the corporate governance as well as the empirical analysis on success of the New Hope Group is in part six. Working together with the "seeking and acting for truth" of strategic change and corporate governance, the entrepreneurial spirit plays an important role in the success ofNew Hope Group.Overall, we have established an integrated logic system of the combination of knowing and doing relationship between the strategic change and the corporate governance dialectically and unified. The author has also provided feasible suggestions and advice for the large private enterprises in China by analyzing the success factors and summarizing the experience points of the New Hope Group hoping these suggestions can also be used in most enterprises.