During the past year, the economics watcher, wan xiaoqiao, worked to break out of power struggles and human unrest, and domesticization entered the “era of peace” with the inauguration of the director of the shanghai householdists group, xie wenjin, and the release of the five-year strategic plan by the management team。
This was the first firm in shanghai to launch the state-owned stock retreat, known as the shanghai state reform。
This change is significant and is called “a solution to two major issues in the development of national entrepreneurship, namely, investment decision-making and incentives”, and it is hoped that shanghai will establish a board of directors system, a sound corporate structure and a good business team. At the end of 2010, the national chemical group announced that it was in the process of preparing a reform of state finances. In december 2011, us$ 5. 1 billion was officially admitted to the home rule group。
However, the development of the culture and strategy of the csag by the psag triggered a violent conflict with the former management, the former chairman and several senior executives, and at one point called into question the original intent of the acquisition. To this end, the then chairman of the peace trust, kosei, stressed to the economic watch that there was no substantive difference between the operation of the trust and the domestication of shanghai, and that the terms of the investment contract were respected. “domesticization is one of the most important investment projects for peace. China's japanese industry has enormous potential. The original intent of our long-standing familyization has not changed, and the adjustment of personnel during this period falls within the realm of corporate governance and professional conduct”。
As the leading home-grown solar enterprise, shanghai nationalized group had hoped to reposition domesticization as an international-class integrated solar enterprise by transforming it, tapping into brand value added in manufacturing, and creating an integrated fashion industry group with secure capital. In june last year, the shanghai nationalized management team developed a new five-year strategic plan, with corporate sales revenues exceeding $12 billion by 2018, with market shares reaching the top five from the current tenth。
The promotion of state-owned enterprises to improve the modern enterprise system is an important guarantee that they will be able to release their dynamism as soon as possible. Through market-based operations, external expectations for new developments in domesticization have been high, while the “skirmishes” experienced by domesticized groups in the process of restructuring have also provided lessons for the ongoing reforms of mixed ownership of state-owned enterprises and emphasized the norms that should govern the effective integration of industrial and financial capital。
Harnessing synergies between capital and mechanisms
The economic watch: what important changes have been made by domesticized groups in implementing the reforms
She wenchin: as a classic example of the reform of shanghai's state capital, in the process of implementing the reform, shanghai domestication is “incorporated” to give enterprises more flexibility in terms of capital operations and financial resource allocation, while using an internationalized perspective to actively operate brands “outside”, leaving brands out of the country and opening up international markets。
Since then, pci has adhered to the terms of the investment compacts, beginning with a change in the shanghai capitalization group's original equity structure, opening up new paths for national entrepreneurship, and gaining good business mechanisms and growth space for domesticization. Second, it has created market-competitive incentives for domesticization to promote long-term domesticization and strong support for domesticization through integrated financial operations, as well as attempts to provide sound business advice. Last year, peace also expressed its long-held resolve by increasing the shareholding of domesticized shares。
It can be seen that, since the transformation of the family group, there has been full staff motivation and a healthy development in performance. The data show that in january-september 2014, company revenue increased by 16. 47 per cent over the same period and net profits by 728 million against 16. 9 per cent over the same period. The steady growth in performance has been largely the result of a clear and well-defined strategic plan for shanghai's domestication, a steady and well-managed business, and a parallel effort to optimize the various aspects of corporate culture, corporate systems and talent development, providing a good basis for corporate development。
Economic watch: what are the lessons to be shared in the transformation of domesticized groups as a milestone in the reform of public capital in shanghai, for example, how to avoid similar confrontations
Shevinjian: we believe that the collective will of the board of directors and the voting choices of the majority of shareholders must be respected, and that only by respecting the premise that industrial and financial capital will be integrated will enterprises be able to use the synergies of capital, resources and mechanisms based on the interests of the majority of shareholders。
In a modern market-based environment, the development of listed companies should be decided collectively by the board of directors and not by the business leader. Shanghai nationalization corporation, a publicly listed company, continues to be governed by sound regulatory mechanisms and governance norms to go further. As a result, after the completion of the restructuring of state enterprises, there is a need to build on the experience of market-based enterprise management, improve corporate governance structures and improve the scientific management of enterprises。
Differences between the ideas of corporate leaders and controlling shareholders are inevitable, but when problems arise, they must be governed by market rules, such as the relevant laws and regulations, while avoiding the involvement of enterprises in endless wars of public opinion。
The conflicts that had arisen prior to homeization were not the poor integration of financial and industrial capital, but rather the context of corporate governance and professional conduct, which was a matter of internal management behaviour of domesticized enterprises in shanghai. Indeed, there are examples of successful combinations of industrial and financial capital, both at home and abroad, but this must be based on regulated business management and sound internal control mechanisms, with both industrial and financial capital representatives respecting ethical standards and professional conduct。
Economic watch: has the original intent of domestication changed
She wenzin: china’s japanese-chemical industry has a bright future and great potential. The original aim of this transformation is to better unleash the dynamism of enterprises, improve corporate governance systems and decision-making mechanisms, not only to improve corporate governance, but also to further refine it. We will also develop sustainable development strategies based on the further improvement of our systems of control, internal compliance and corporate governance. We will aim to transform shanghai into a strategic, institutionally advanced, governance-oriented, culturally healthy and competitive enterprise that will contribute to the internationalization of china’s national brand。
Continuous improvement of enterprise management systems
The economic watch: in the past year, where has the new management team been operating at home
Shevinjian: the new management team actively advocates the participation of all employees in the development of a new business culture, emphasizing transparency, distinction between rewards and penalties, courage to innovate, etc., which is the spirit most needed for domestication, e. G., in the previous appraisal system, there was no system of domesticization for talent development, and there was no open and transparent communication mechanism, and the lack of awareness among employees of the strategic goals and plans of the enterprise was a cultural and institutional deficit。
Through thorough research, the new management team developed a new, home-grown five-year development strategy. New planning has shifted from a profit-centred approach over the past few years to a strategic orientation centred on the occupation of market shares, requiring that domesticized products be more representative of market demand and closer to consumers. In a highly competitive industry, the strategy of domestication has gained recognition。
Economic watch: what adjustments have been made to the operational level
She wenchin: in june last year, shanghai householdization issued a 5+1 brand strategy, identifying four core competitiveness and five sub-markets, new combo and classification of corporate brands, and future investments will revolve around the solar industry, seeking complementarity in goods, varieties and capabilities, along two lines: first, seeking complementary targets in the existing five sub-markets, such as baby and child brands complementary to initial brands, and specialized store-channel brands, and second, new products that are not currently available, such as market penetration rates and a great potential for painting, as well as a market capacity that is subordinate to skin protection and mouth care。
In line with the construction of the four core competitivenesss and the implementation of the 5+1 brand strategy, in 2014 shanghai householdization was oriented towards a “client” orientation, including the optimization of brand development, marketing, talent development, supply chain optimization, scientific innovation and institution-building。
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