Research On Performance Improvement And Strategy Optimization For A Company

Driven by the overall implementation of the Two-child Policy across China since 2016,large amounts of investment have begun to flow into the industry of preschool education.Various preschool education companies have sprung up,leading to enormous new opportunities and challenges in the industry of preschool education.In 2018,China issued a policy to encourage the establishment of non-profit inclusive kindergartens.Under the general background of the era,the national policy stipulates that 80% of early education organizations should be non-profit kindergartens(public kindergartens and inclusive kindergartens);whereas the rest 20% of these organizations are for-profit private kindergartens.With the shrinking in the market share of for-profit kindergartens,various early education chain brands have to fiercely compete with one another for the rest 20% of market simultaneously while impacted by national inclusive policies.The ever-increasingly fiercer competition will screen and eliminate a large number of similar education companies;and only companies that are capable of adapting to market changes could achieve long-term development in the competition.Starting from the perspective of A Company,a preschool education franchise chain company focusing on franchise and service of private-owned for-profit kindergarten brand,this paper investigates why the performance(business volume and profits)of A Company declines and how the company could improve its performance under the new policy.By virtue of the business diagnosis theories and methods,this research explores A Company through the method of literature review,questionnaire survey and interview while further analyzing its internal and external environment through PEST analysis,Porter's Five Forces and SWOT analysis.Meanwhile,the BCG Matrix is adopted to reclassify the company's products.As indicated by the research results,the performance decline of A Company is not only related to the changing external market environment,but also caused by the single business of the company for it could hardly match with the market tendency and new commercial opportunities,the defective institutional construction,the lack of effective incentive mechanism and the incompatibility between personnel allocation and enterprise strategic goal.This paper reveals that it is necessary for a company to constantly pay attention to its macroscopic market environment and industrial competition market,review its own internal competitivity and problems,adjust its product strategy timely when the market potential of its original product is not promising,strengthen its own institutional construction and improve the abilities of group members to match with the adjusted product strategy.This research repositions the strategy of A Company under the new environment;i.e.by leveraging its advantage of brand and technology accumulation,A Company could adopt diversified business layout and differentiation strategy to develop its business of early education nursery franchise,business of special support service for preschool education institutions and business of online education.The following measures are suggested for A Company based on this research:to strengthen its strategy and goal management and follow up management accountability;to reinforce its institutional construction like risk control and innovation;to fit to the diversified incentive mechanism;to hunt for high-end talents suitable for the strategy;to cultivate internal talents etc.,with the aim to rejuvenate the company.It is also hoped that the paper could provide some beneficial inspiration for preschool education management companies operated under the contemporary context,so as to help for-profit private education institution chains to develop soundly and realize the win-win result of both profit and reputation.