Performance Research On Strategic Transformation Of Family Business

For nearly four decades of reform and opening up,the Chinese government has made great efforts to guide and support the non-public sectors of the economy,and encouraged the growth of the private economy.The private economy represented by family business plays an important role in the economic progress of our country.With the expansion of the scale,the change of external business environment and the intense market competition,the usual operation and further development of family businesses encountered many challenges.In order to radically solve the problem and achieve sustainable development,family businesses need to change management ideas and adjust strategy,keeping with the trend of the times while followed traditions.This paper takes the New Hope Liuhe CO.,Ltd as the research object,and uses the method of case analysis to focus on the process,motivation of the strategic transformation,particularly on performance.Through the financial data and non-financial data,it shows the the effect,and then finds the successful experience and problems of the company’s strategic transformation.The New Hope Liuhe is the agricultural industry’s leading company and the strategic transformation pioneer of family businesses.To study its transformation,it can provide reference and significance for other family businesses.The study found that strategic transformation which from a feed producer to a service provider of the New Hope Liuhe is a major strategic change in face of market,policy and other internal and external pressure.The results show that financial performance is not satisfactory,even get worse by strategic transformation,but it shows good performance at the customer perspective,the business process perspective and learning and growth perspective.Finally,the performance of the above three levels will be reflected in the financial perspective though it can’t show right away.The case shows that if a family business wants to be in a favorable position in the fierce competition,it needs to maintain its own advantages,and implement strategic transformation which adapt to the social development actively,and ensure the sustainable development of company eventually.