The Study On The Motivation And Performance Of Hengrui Medicine Using Asset-Light Operation Model

Modern social economy develops rapidly and the market environment is changing quickly.Enterprises can not stick to the same business model if they want to have continuous development.Enterprises need to continuously change and improve their own business model to adapt to the changes in the global economic environment,because the value of an enterprise depends largely on whether the enterprise has a good business model.If an enterprise wants to achieve sustained high-speed development,it has to relay on the light assets,such as R&D capability,sales capability and supply chain management,rather than only relaying on the expansion of the market share.Therefore,asset-light operation model has become an important direction of business transformation.Nowadays more and more outstanding enterprises around the world are gradually using light asset operating mode,especially the world's top 500 enterprises.Nike Company has achieved great success in business by using the asset-light operation model.Facebook Company successfully listed by using the asset-light operation model.These successful cases make asset-light operation model attracting attention of more and more entrepreneurs and scholars.Even the famous McKinsey Company also praises the asset-light operation model highly.In the new economic era,the success of the enterprise will depend on the company's ability of operating light assets to a certain extent.With the continued strengthening of the government's focus on health care and the growing emphasis of people on health care,China's pharmaceutical manufacturing industry,which is facing the great potential of the pharmaceutical market,has great developing prospects.However at the same time,along with the influx of international pharmaceutical giants into the Chinese market,Chinese pharmaceutical manufacturing industry is gradually moving towards the mature stage of intense competition.The continuous reform of medical policy in China will also impact on pharmaceutical manufacturers.Sustained price war and blind sales channel expansion has not only fundamentally resolved the contradictions and problems,but also lead to a serious homogenization problem of the pharmaceutical industry product and operating model,which leading to net profit decline or even a loss of the majority of pharmaceutical companies.Hengrui Medicine Company gradually promotes the use of asset-light operation model over the years.Relying on high value-added products and the research and development capabilities,Hengrui Medicine Company captures the market and gradually reduces the investment in fixed assets.In the implementation of the asset-light operation model,the business performance of Hengrui Medicine Company was further improved and the value of the enterprise continues to increase.Now the market value of Hengrui Medicine ranks first in the pharmaceutical manufacturing industry.At the same time,the company's competitive advantage improves and the company moves towards sustainable development.Therefore,this paper chooses Hengrui Medicine Company as the case study object in order to make the following contributions;First,by revealing the motivation of Hengrui Medicine Company using asset-light operation model and evaluating its performance and the mechanism of its performance,this paper can provide a useful reference for the future development of the Chinese pharmaceutical manufacturing industry and provide some ideas and inspiration for the transformation to asset-light operation model of other enterprises.Second,at present,the research on the asset-light operation model is focused on the garment industry,the Internet industry and the high-tech industry.The research on the asset-light operation mode of the pharmaceutical manufacturing industry,especially from the perspective of motivation and enterprise performance,is in a blank state,the study of this case can help to enrich the asset-light operation model theoretical research,so as to further improve the corporate governance theory.The basic structure of this paper is divided into five parts.The first part is the introduction,which mainly introduces the background and the significance of researching the asset-light operation model.After reviewing the domestic and the foreign literature,it constructs the paper research thought and the method.The second part is the theoretical overview of the operation model of light assets,which mainly introduces the concept and the motivation of asset-light operation model and expounds the evaluation method and the theoretical basis of asset-light operation model.The third part is the case study of Hengrui Medicine Company which using asset-light operation model.This part mainly introduces the basic situation of Hengrui Medicine Company and analyzes the financial characteristics of its asset-light operation model,and then reveals the motivation of Hengrui Medicine Company using asset-light operation model.The fourth part is the analysis of the performance and the performance mechanism of Hengrui Medicine Company using asset-light operation model.It mainly analyzes the performance of Hengrui medicine using asset-light operation model from non-financial aspect and financial aspect,and then analyzes the formation mechanism of its performance.The fifth part is the conclusion and inspiration.By using of literature research,case analysis,comparative analysis and financial analysis,this paper analyzes the motivation and performance of Hengrui Medicine Company using asset-light operation model,and obtains the conclusion that the asset-light operation model can enhance the profitability of enterprises,can maintain the core competitiveness of enterprises,can ensure that enterprises have sufficient free cash flow,can promote the rapid development of enterprises and can increase the value of enterprises.According to this conclusion,this paper summarizes the experience of Hengrui Medicine Company using asset-light operation model and gives relevant enlightenment for other enterprises to implement asset-light operation model: enterprises should fully explore their potential light assets and properly divest their business so as to enhance core competitiveness,focus on supply chain management to release cash flow,and to make full use of asset-light operation model to lead the business transformation.