China Communications Construction Company Limited Strategic Transformation
|School||Central China Normal University|
|Keywords||Strategic management The enterprise life cycle theory Integrationfive commerce pattern in CCCC Strategic transformation of state-owned enterprise|
State-owned enterprises are playing an important role in economic entities and the reform of state-owned enterprises is a central part of China’s economic reform. It was pointed at Eighteenth Third Plenary Session that it is necessary to unswervingly consolidate and develop the public economy, maintaining the public ownership dominant position to play a leading role in the national economy and constantly enhancing the vitality, the controllability and the influence of state owned economy. With the changes in domestic and international market, we must adjust the industrial structure using the marketization and globalization thinking and accelerate the reform of state-owned enterprises to adapt to the new international situation. China Communications Construction Group is one of the largest central enterprises in china, ranking216th among the world’s Top500. After a rapid development of business in a few years, revenue growth met bottleneck and development encounter "glass ceiling." To achieve long-term development goal, the Group Chairman, Comrade Liu Qitao proposed a strategic vision, well known as "integration five commerce patterns in CCCC", trying to build the enterprise as the world’s leading engineering contractors, Urban Complex Development operators, specialty real estate developer, comprehensive infrastructure investor, marine and port machinery manufacturer and heavy equipment and systems contractor. This strategic vision is to break the traditional mode and survival mode of thinking, making the enterprises change from a simple construction and production pattern into the market competition pattern, to build the enterprise as a profit winner through commercial investment. With integration of commercial culture and traditional industrial culture and combination commercial thinking and commercial pattern with simple construction and production, the enterprise successfully realized the reform from industry to commerce and changes by leaps and bounds. To upgrade through strategic, organizational structure adjustment, resource integration, business restructuring, strengthen the industrial chain to value chain transformation, through its specialized units, differences in development, the formation of the pattern of division of labor, the first to build a world-class enterprise.In this paper, guided by the enterprise life cycle theory which is the enterprise development experiences the birth, growth, expansion, recession or regeneration phase, beginning with the necessary of the reform of state-owned enterprises, the author is trying to clarify that in order to achieve long-term sustainable development, state-owned enterprises must get rid of the rely on national policies to support the economy during past time and the traditional pattern of positive thinking, adhering to innovation and making strategic choice at the right time. Meanwhile, in this paper, the author also uses corporate strategic management theory and SWOT analysis to analyzes the advantages, disadvantages, opportunities and challenges during CCCC development, elaborating the content, detailed measures and steps of" integration five commerce patterns in CCCC" theory and discussing the significance of central enterprises operating in transition and direction in the fierce competition in the market for modernization..