Strategic Management of Enterprises - Theory, Process and Practice

Author: Jiang Yuntong
Publisher:
Publish Date: 2006-06-01
Features: The author has dedicated nearly 20 years to researching and exploring the theory and practice of corporate strategy. This book traces the origin and development of Western corporate strategy management theory, explores the purpose of corporate strategy management theory, organizes the classic theories of Western corporate strategy management to clarify what corporate strategy management theory is, studies the operational process of Western corporate strategy management, and explores what Chinese enterprises should do and how to apply strategic management theory to effectively solve the competitive, survival, and development problems faced by enterprises, enabling them to grow healthily in a rational manner. This book is suitable for corporate strategy management practitioners in China and can also serve as a textbook for MBA and undergraduate management majors on "Corporate Strategy Management." Strategy, anciently known as tao-lüe, was a military term. "The art of war begins with calculation," strategy refers to military tactics, "to plan within the tent and win a thousand miles away." The distinguishing feature of this book compared to domestic works on the same subject lies in its focus on the needs of corporate strategy management practitioners in China. It does not provide a comprehensive review of Western strategic management literature or a scholarly comparison of strategic management theories. Instead, drawing on the profound philosophical thought and methodology of China, it borrows the essence of Western corporate strategy theory and absorbs the wisdom of military strategy from the "Art of War" to create a trilogy of "Theory, Process, and Practice" in corporate strategy management, establishing a theoretical system of Chinese corporate strategy management.
2. Corporate Strategy Thought
Corporate strategy thought is the guiding ideology for formulating strategy and the soul of corporate strategy. The nature of the strategy thought determines the nature of the strategy. Corporate strategies formulated under correct strategic thought can lead the enterprise to prosperity; conversely, they may put the enterprise at a disadvantage in market competition, even risking elimination. Therefore, the correct strategic guiding ideology for enterprises is: , the strategic thought of socialist enterprises must first conform to the line, principles, and policies of the Party and the state, which means proceeding from the actual conditions of China, adhering to the Four Cardinal Principles, and upholding reform, opening up, and revitalization, as well as the principle that "development is the hard truth." These two aspects are unified and indispensable. Adhering to the Four Cardinal Principles and sustainable development are the fundamental guarantees for reform, opening up, and revitalization, as well as the principle that "development is the hard truth." Conversely, without reform, opening up, and revitalization and sustainable development, it would be impossible to build socialism with Chinese characteristics. Second, it must align with the requirements of the market economy under socialism. Specifically, it should include the following four concepts:
① Concept of the Whole. The production and operation activities of socialist enterprises are carried out under the guidance of the macro planning of national economic development. When the interests of the enterprise conflict with the interests of the state, the enterprise should consciously subordinate local interests to the interests of the whole. This is the concept of the whole. At the same time, it is necessary to correctly handle the economic interests among the state, enterprises, and employees, and to pay attention to fulfilling social obligations and responsibilities.
② Concept of the Market. The market is the condition for the production of commodities. Enterprises that establish a market concept must first adhere to the principle of meeting market demand, customer-centricity, and meeting the needs of consumer values. They should conduct market research and forecasting to grasp market demand and customer needs, providing high-quality products and excellent services to customers. Secondly, they should strive to develop markets, including domestic and international markets, gradually moving towards international operations.
③ Concept of Competition. The market economy is essentially a competitive economy, and the outcome of competition is survival of the fittest. Therefore, competition is the internal driving force and external pressure for enterprise development. Through competition, inertia can be broken, spirits can be revitalized, and new enterprises can be created. Market competition is essentially a competition between enterprises in terms of talent, technology, and management, and ultimately reflects a competition in talent. Therefore, the role of human factors must be given special attention, with a people-centered approach. Only by being good at discovering, cultivating, and using talent can an enterprise remain invincible in competition.
④ Concept of Efficiency. Improving economic efficiency is the center of enterprise operations. Improving economic efficiency means producing more products that meet social needs with the least consumption. To this end, enterprises must reduce material consumption and minimize environmental pollution, improve labor productivity, save expenses, accelerate capital turnover, reduce product costs, and increase profitability. Third, in addition to adhering to the above universal strategic thoughts, enterprises must also develop their own unique strategic thoughts based on their specific conditions. For example, the strategic thought of gaining an advantage through unconventional tactics; the strategic thought of remaining vigilant in times of prosperity; and the strategic thought of not seeking immediate success but focusing on the long-term development of the enterprise.