Case Study Of MEIG Asset Stripping

In order to improve the quality of economic growth,China put forward supply side structural reform in 2015.Among the five measures,"reduce excessive capacity" is the primary task of reform,so guiding industrial transformation and upgrading has become the main goal of high-quality development of manufacturing industry.China’s manufacturing market economy is small and medium-sized enterprises.To avoid shifting from reality to emptiness,so as to complete the industrial transformation and upgrading,we should rely on the majority of small and medium-sized manufacturing enterprises to concentrate on their main business.Under the trend of professional transformation,asset stripping has become one of the means for enterprises to return to their main business or transformation and upgrading.Therefore,how to use the method of asset divestiture to optimize the company’s resource allocation and enhance its core competitiveness has become a problem that the company needs to care about.Taking MEIG as the research object,this paper studies and analyzes the whole process of MEIG stripping assets by means of data access,research and interview,combined with resource arrangement theory,dynamic capability theory and refocusing strategy theory.In the face of increasingly fierce market competition environment and the treacherous international trade situation,MEIG made sufficient preparations in the early stage of stripping precision component assets,carefully selected the implementation scheme of asset stripping,integrated resources after asset stripping,took appropriate resource actions in the whole process of asset stripping,and finally successfully stripped the precision component business with low added value,Realize the results of industrial transformation,improvement of core competitiveness and increase of market value.Through the analysis and research of the case,we can get the following enlightenment:(1)the process of enterprise asset divestiture is the process of optimal allocation of resources,and appropriate divestiture can help enterprises achieve the goal of strategic transformation;(2)In the process of asset divestiture,enterprises will go through the stages of resource acquisition,divestiture and optimization.Therefore,it is very important to dynamically match the external environment and adjust the enterprise resource arrangement behavior;(3)Enterprises should pay attention to the timing of asset divestiture and realize win-win cooperation with the transferee of assets in the process of divestiture;(4)After asset divestiture,enterprises still need to continue to pay attention to the integration and utilization of resources in order to achieve the optimal efficiency of asset divestitureThrough the research on the whole process of MEIG asset divestiture,this paper creatively constructs the impact path of asset divestiture on enterprise performance from the cognitive perspective of resource arrangement and dynamic ability,so as to provide a useful reference for enterprises that expect to complete strategic transformation through asset divestiture in the future.