Presented to
Li, Shenglu
赵晟皓
徐璐平
童倩霞

Study on the Transformation and Upgrading of Enterprise
Executive Summary ........................................................................................................................ II
Introduction ...................................................................................................................................... 1
Purpose ......................................................................................................................................... 1
Methods ........................................................................................................................................ 1
Limitations.................................................................................................................................... 2
Sentai's Development in the Past ...................................................................................................... 3
Company Profile and Products Introduction ................................................................................ 3
Departments Introduction ............................................................................................................. 4
The 2008 Economic Crisis ........................................................................................................... 7
How to Respond to the Economic Crisis ...................................................................................... 9
Transformation and Upgrading ...................................................................................................... 11
New Steel Pipe Company ........................................................................................................... 12
Procedures of a Merger .......................................................................................................... 12
Resources integration and optimization ................................................................................. 16
New Elevator Company ............................................................................................................. 18
Brief Introduction of the New Type of Elevator .................................................................... 18
Features of the Product ........................................................................................................... 18
The Market Strategic .............................................................................................................. 20
Technology Shares ................................................................................................................. 22
Policy Support ........................................................................................................................ 25
Recommendations .......................................................................................................................... 26
Team Assignments Distribution ..................................................................................................... 29
References ...................................................................................................................................... 30
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Study on the Transformation and Upgrading of Enterprise
Our research is based on the course Fundamentals of Management. To know more about a company's management, we chose Haiyan Sentai Steel pipe co.,LTD as our research object and we designed two on-the-spot researches focusing on the planning of Sentai.
The first time we mainly planned to know about the major functions of the company's departments, how it reacts to the 2008 world wide economic crisis and what short-term or long-term plans it has made. We talked with Mr.Zhao, the boss of Sentai and employees from the finance department, the international trade department, etc.
We also designed a customer satisfaction survey and an employee satisfaction survey which to some degree help us learn the opinions of what customers and employees have on Sentai.
During the first on-the-spot research we learned the status quo of Sentai and it is ready to upgrade itself by establishing two new joint ventures. As it is a turning point for the company, for the second time we went there with more questions that is related to the two newly-born joint ventures. Basically we gave more concerns on negotiations, the procedures that will be taken during the process of a merge and what should be taken into consideration when your partner is the one that contributes its technology to become a share holder.
Afterwards we had several group discussions of our research and decided to mainly divide the content of our final report into three parts. The first part is about the problems Sentai faced how it reacted during the period that economic crisis occurs.
The second part is about the two joint ventures which is the ' next step ' of Sentai. The
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Study on the Transformation and Upgrading of Enterprise third part is our recommendations on the company's long-term plan.
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Study on the Transformation and Upgrading of Enterprise
Fundamentals of Management is a course of vital importance for business English major students. In order to better understand the theories and principles in management and see how they are carried out in the actual practice of managing, we designed this research. Through this research we hope we can get more general knowledge and a better understanding of companies, business and economic. Our ability of communicating and business etiquette will be improved and it is a good opportunity for us to adapt CCI thinking pattern into the research, exploring more than the research itself.
We generally use SCQ as our research method because it's simple, clear and helpful when we need to solve problems and find new ones. We adapt SCQ research method almost every detailed research objects and it is a guide for our actions.
We use SCQ in this way,
Example 1
Situation: Gross profits of steel pipe have almost turned to zero.
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Study on the Transformation and Upgrading of Enterprise
Complication: The rising competition among steel pipe industry which is also caused by excess capacity force companies to reduce the price and keep the market share.
Questions: How to cut down the cost of production? How to transform from the traditional manufacturing industry and find a new way of developing?
Example 2
Situation: The funding body of a technology investment company should take the risks different from what other kind of companies take.
Complication: The body who invest by technology holds the core competitiveness of the company. It is possible that there will be technology leak.
Questions: How to Avoid or react to technology leak? If there's not, how to maintain the cooperative relations after the contract is dissoluted?
We also use SWOT analysis methods when analysing Sentai's weakness and competitiveness.
As it is the first time for us to do a research in a company, we may be lack of experience of how to communicate with people at different levels and acting business etiquette.
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Study on the Transformation and Upgrading of Enterprise
Information gathering is limited for some of the confidential documents or information should be protected. This is also a reason why we chose planning as the direction of our research. We only need general information of the company's planning, both how it planned and it is planning.
The company is in the process of layoff so the amount of employees is limited. It is hard for us to draw conclusions after we accomplish the questionnaires designed for employees. And it is not easy to gather feedbacks from foreign customers by the questionnaire that we designed for it is a official action and our questionnaire is not professional enough. So eventually we have to refer to the customer satisfaction survey made by the company itself to learn what the customers concern most.
Established in 1995, Haiyan Sentai Steel Co., Ltd is located in the west of Xitangqiao
Town, Haiyan County, Jiaxing City, Zhejiang Province in the north of the Hangzhou
Gulf Bridge. Now, the company has an annual production capability of 100,000 tons of seamless steel pipes with 10mm to 340mm in diameter and 1.2mm to 45mm in wall thickness. Their main products are petroleum tubes, structural steel pipes and fluid pipes which are widely used in the fields of petroleum industry, liquid conveyance, automobile, hydraulic jack, mining mechanics, fluid drive, low and middling tension pipeline and automation. Adhering to the principle of "quality, reputation, learning
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Study on the Transformation and Upgrading of Enterprise and service", they take "customer creation value" as the objective and base on market-oriented to provide the best service for customers. Their company has attained
ISO9001:2000 certification. We will warmly welcome friends from all over the world to cooperate with us.
The company is consists of 5 major departments, supply and marketing department, technical inspection department, supply and marketing department, enterprise management department and financial department. And the next we’ll introduce their main functions in turn for company’s normal running.
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Study on the Transformation and Upgrading of Enterprise
Figure 1.1 staff relations
Supply and marketing department is responsible for foreign negotiations, quoted prices and balanced order receiving according to the company’s production capacity.
They host daily meetings, sign and issue sale contracts, supervise plans’ execution and conduct market research. For customers, establishing files, collecting information and handling their complaints and after-service like customer satisfaction survey timely are very important.
Technical inspection department is responsible for monitoring whole productive process such as equipments, products and dates. Under the leadership and involvement of managers, they apply to the quality management review and assessment to suitability, adequacy and effectiveness of the QMS. So they also write
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Study on the Transformation and Upgrading of Enterprise inspection instructions and standards about the key process and special process control.
Production department is responsible for entire product operation process control, carrying out technical documentation like engineering operation instruction or process planning. They have the right and obligation to handling quality problems in production process with relative affairs. Working out the production schedule for the production workshop, and supervising implementation of the production task execution, planning and controlling equipment, materials for balanced production also are their obligations.
Enterprise management department is responsible for the company’s files and records integrated management work. They coordinate management of interfaces, and preside over internal communication work, assist general manager to carry out management review and management representative to execute internal audit work. Human resources management like educational training employees, welfare and insurance is also a vital part.
Financial department is responsible for supervising the implementation of matters involved in accounting quality of products and services, assisting evaluation of important contracts and suppliers, and participating in feasibility study of important business activities. They take charge of checking the work quality and efficiency of each position of the department, enhancing the law education and professional guidance, improving the quality of the accounting, and formulating personnel salary bonus scheme according to company’s rewards and punishment system.
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Study on the Transformation and Upgrading of Enterprise
Figure 1.2 management structure
Around 2008, the company bought a batch of equipment to improve production efficiency greatly, and thought 2008 is a year of harvest. However, the economic crisis occurred. In order to protect its own manufacturing to improve the national finance income, foreign countries took anti-dumping measures at China's domestic oil and steel pipe industry. This has a huge impact to China’s domestic manufacturing industry. As the raw material prices increase, gross profit of steel pipe reduces, and
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Study on the Transformation and Upgrading of Enterprise the large quantities of production of steel pipe have to be sold at a low price. Although the total sales increase greatly, but it’s almost none profit.
At the same time, an excessive competition has occurred in domestic steel industry. It is not only a brutal price war, but also a crisis caused by excess production capacity, which lead to shortage of funds and extend the risk. Therefore, the company has to adjust its strategy that is to transform domestic trade gradually to foreign trade
(especially exporting to developing countries). Today foreign trade sales volume about 60% of the total sales.
Figure 1.3 The Sales Data from 2006 to October, 2013
It’s said that the company's export sales started in 2010. The export sales increased while the domestic sales reduced year by year, indicating that the company has gradually turned to do export sales. In 2008, the company's gross earnings reached about three times as that of the past several years. It reflects that the data of 2008 gross profit is a "false data" and the hiding effects of the economic crisis - clinch a deal at a low price. In fact, the domestic market is saturated, and the company has to
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Study on the Transformation and Upgrading of Enterprise turn to foreign markets.
According to exhibit 3-5 in Fundamentals of Management,6e , we do a swot analyze for it and know more about how can the company’s managers to reassess the company’s mission and objectives.
Figure 1.4
What can be seen is that the development of steel industry is moving towards stalemate. The best way to solve the problem is to switch from this industry. To keep the basic capital flowing, what reaction the company made immediately is to reduce the cost-- reduce the staff. Staff management costs will drag company’s development.
Then, the payment system of ordinary employees (equipment operators) has turned to the piecework system, namely that more pay for more work. On the one hand, it saves
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Study on the Transformation and Upgrading of Enterprise the manpower. The work of two workers can be done by one person. On the other hand, it can greatly improve the enthusiasm of workers. Workers can do more and get more than past, which gives the satisfaction of both. In addition, the company also simplifies the office personnel. As is known to all, China’s office is always been crowed with encumbrance, indolence and mutual shuffle. Therefore, the company will downsize the office personnel to 1 or 2 people, except several departments (such as the International Trade Department). What they do not only reduces the costs of top management greatly, also makes all the staffs service sincerely for the company.
Figure 1.5
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Study on the Transformation and Upgrading of Enterprise
What the second reaction the company made is to consider the transformation and upgrading of the company. Iron and steel, as a continuing industry for more than one hundred, has been unable to make a change on its craft, even the advanced foreign technology also cannot change the production process of steel pipe. The only thing we can do is to improve the production efficiency and reduce the cost. Therefore, the company must take upgrading. The solution has found is that the company found an enterprise to achieve win-win. Company's decision is to take a joint venture with a company of Zhuji, which can reduce the producing costs for steel pipe dramatically and increase profits.
The excessive competition in the domestic steel pipe industry reflects a serious problem --- steel pipe industry entries threshold. Repeated investing capacity makes the production efficiency improved. Ultimately it accelerates the excess capacity.
Hence, the company had to take transformation.
Steel pipe industry, as a traditional manufacturing industry, became low-profitable after the economic crisis. At this turning point, Sentai chooses to establish two joint ventures. The first is to establish a new steel pipe company with Zhejiang Tianjie
Group. The second is to establish a elevator company with college of electrical engineering, Zhejiang university. Sentai will have realized its expansion and a new age is coming. In this part we will introduce some information and technical details bout the two mergers.
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Study on the Transformation and Upgrading of Enterprise
Merger is a kind of legal act. It not only involves the change of the company, but also relates to the company creditor's rights debt and the interests of the parties. Therefore, it must be set in accordance with the procedures.
Make a merger agreement
Board resolution
Resolution of shareholders meeting
Conduct registration procedures of merger
Notice or announce the creditors
Figure 2.1 procedures of a merger govern ment permission
Preparing a balance sheet
Before the merger agreement formally agreed, it must first be in the company internal consensus to make a decision method. Shang. According to the regulations of the company law, as for merger, firstly the plan needs to be formulated by the board of directors, then company's shareholders make the decision. At the same time, merge of incorporated company must be approved by the departments authorized by the state council or the people's governments at the provincial level method.
Three most important steps during the merger:
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1.Negotiation
Study on the Transformation and Upgrading of Enterprise a. Preparatory Phase
At deployment time, the most core interest and negotiation skills of the process may use need to be fully specified. On the base of national and international studies, the common planning process of industry transformation and upgrading and joint stock was brought forward, including the detail of each step.
Figure 2.2 Noteworthy negotiation process and skills
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Study on the Transformation and Upgrading of Enterprise b. Formal Negotiation Phase
Attitudes should be identified firstly. When the negotiation object is equally important as the result for the company, keep friendly cooperative mentality for win-win situation and transfer the contradiction elsewhere. Typically, if the conflict is in zoning, both sides can explore new market, expand regional area and transform competing into consociation. Having a full understanding of the other side including the restricted zone, and making multiple contingency plans are also the essential preparation.
Generally speaking, 9:00~11:00a.m is the best time of day to negotiate for the purpose of having the initiative in hands in energetic bodies. In location choice, senior leader’ offices like general manager’s isn’t ideal. They tend to have the negotiation in informal occasions to establish harmonious atmosphere for a good result. A smaller quantity of staffs is benefit for forming a whole line of thinking. Absent professionals can make the other side relax vigilance but their instructions and suggestions must be remembered in minds.
Negotiation language must be concise and targeted to make the other side clearly expound the viewpoint, attitude and position, when they’re in the best state of receiving information. If a large number of information needs to be expressed like contract or proposal, add inflection or change the tone of how you pronounce the words at the appropriate time. To be affable without compromising our principle is a sign of wisdom throughout the whole process. Great negotiators generally wish to reach an agreement which meets the interests of both sides. For example in setting and achieving humongous goals, they can be aggressive without being over-bearing or boorish. They can be flexible enough and adeptly deal with a great amount of
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Study on the Transformation and Upgrading of Enterprise ever-emerging information and uncertainties. Curve attack, concession bargaining and division tactic are usual skills.
Thanks to excellent maneuver in negotiation, we can attain maxim benefit from the contract. c.
Execution Phase
Reaching a consensus is the ending of negotiation phase and beginning of trade cooperation. As long as negotiators have reached the agreement and signed, all these can't get change. Compensation and arbitration both can be claimed for defaults and dispute. The negotiation gets truly completed when trading and cooperation are truly implemented.
2. The Investment Agreement
It includes the amount of capital provided by the parties, the duty undertaken for the debts of the corporation, the projects the company managed. Also, it should be composed of the parties’ rights and obligations, liability for breaching the contract, cooperation period and the way of the company's management and operation, etc.
3. The Investment Certificate
The investment certificate is a written document of that sponsor has already paid capital contribution and holds company shares. Article 32 of the Company Law regulates: After the establishment of limited liability company, the investment
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certificate.
Study on the Transformation and Upgrading of Enterprise
After the Limited Liability Company is founded, capital contribution certificate shall be signed and issued to shareholders. Following items shall be included: a.
Corporate name b.
Found date c.
Registered capital of the company d.
The names of shareholders, capital contributions paid and date of contribution e.
The serial number and issuing date of the capital contribution certificate, which shall be sealed by the company.
Improvements and New Advantages
Zhejiang Tianjie Group is a reliable partner who has a powerful financial background and high productivity. And Sentai is a successful manufacturing company who holds the technology of producing cold-drawing steel pipes and hot-rolling steel pipes.
During the merge Sentai will mainly provide its equipments on steel pipe producing while Tianjie will provide its capital. During the first on-the-spot research we
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Study on the Transformation and Upgrading of Enterprise recognized that capital flow is the key of manufacturing industries. So for Sentai, the merge will greatly help it financially.
The merge can also partially reduce the producing cost. The traditional Sentai way of producing steel pipe is to heat the round steel which is bought from suppliers and then bore a hole through it. This procedure of heating pipes requests a huge consumption on fuels such as coal. Fortunately Tianjie can help save the cost on fuels. Tianjie itself had invested in steel-making which means after the merge the joint venture can bore holes on steel with high temperature that is just produced. So the heating part can be omitted which a great leap for steel pipe is producing.
Human Resources Management
Human resources is a great concern in the merge. As Tianjie is located in Quzhou, The first issue that needs to be dealt with is layoff. Nearly all the local employees will be laid off except for some of the core administrative staffs. Most staffs leave their job automatically for their personal will, and some are fired for not qualified to the job and the contract. The company would not fire employees for no reasonable causes which will violate the conventions listed in the contract. It is important that the company should operate the layoff part legally. After the layoff, the company will help them look for new jobs on local network or by recommending to other local companies. According to one spokesperson of Sentai said, it is not hard for them to get new jobs.
The second issue is how the new company will be consist of which is not decided yet.
But Sentai has a vague idea of dispatching some core administrative staffs to Quzhou for participating and supervising the work of the new company. And it is possible to
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Study on the Transformation and Upgrading of Enterprise hire professional managers to help with the management of the company. As the new company has a higher productivity, it will need more employees for the sales department.
Generally speaking, the new managing team will be of a much larger scale and more professional than before.
It’s beyond argument that the best way to create good jobs or future is to create new industries, companies and innovate original system. And now Haiyan Sentai Steel Co.,
Ltd develops extensive cooperation with a scientific research team from Zhejiang
University, for a new enterprise majoring in electromagnetic suspension elevator. This industry transformation and updating will actively accelerates the scientific theory development, put them into practical production and bring economic benefits to the enterprise.
a. Performance and Advantages
The features of electromagnetic suspension elevator are mainly 3 points. Firstly, it’ll save energy over 50% than general ones. Secondly, based on the recognition of noise
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Study on the Transformation and Upgrading of Enterprise source, design of noise control and effectiveness analysis of implemented, the elevator will eliminate noise as much as possible. Thirdly, thanks to being without traction suspension ropes, it’ll save large amount costs of well houses on the roofs.
Meanwhile, more artificial landscape in cities can be built with beautiful shape, new structure and varied forms.
Figure 2.3 Electromagnetic suspension elevator b. Safety Precautions for Emergency
Since working principle is based on the theory of electromagnetism, how’ll it
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Study on the Transformation and Upgrading of Enterprise continue working after the failure of electricity or there’re some safety precautions for emergency? Permanent magnet electrode not only gives a strong support on the security aspect, but reduces unsafe production and operation of slings as well.
Mechanical popup is another level of protection when elevator stops working suddenly.
Seek a New Market Breakthrough
The effective manager becomes a valued and trusted business partner for his customers, opening the door to introduce new products and services to them. At present, how to design the right market strategy to strengthen competitiveness in international market is becoming the concern of the new company. Look for holes in the market that will help define the niche. The best breakthrough is to search for real estate tycoons mainly in residential building, for the purpose of concentrating marketplace and keeping long-term cooperation relations. Large-scale agents and franchisers come second. Set distributors and branches in big cities would be a poorest choice. And the accumulation of customer contacts and market resources from this process also became the biggest gains to start a new business.
For the final pricing power
Apple can cope better than most companies because it has fat profit margins of as much as 60% and pricing power to absorb some of those costs. For having the market pricing power, the first step they’re planning to launch the new product into the
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Study on the Transformation and Upgrading of Enterprise market with general price for more market share. Absolutely, they’ll raise prices gradually to get final pricing right with better development of new firm. In a deeper discussion, the scale of limited funds to make it difficult for SMEs as the main body of Chinese enterprise annuity market in a long run to monopoly market. Technological monopoly becomes a good way for small and medium-sized enterprises to get a final pricing power under the circumstances. And Sentai will probably do the same.
The Road to OBM (Original Brand Manufacture)
For over two decades Chinese enterprises go through four brand stages which are developing beginners, creating brand, brand competition, and internationalized. And from a long point of view, only self-created brand will boost China’s economy. The brand will signal professional, technical, functional knowledge and skills, and also their position in the market. And on the occasion of the market downturn, it’s beneficial to see prospects for foreign trade under the influence of the RMB relative size is smaller. Even if lacking marketing talent and looking for a quick buck at the present stage, they would still prefer to spend the time and money on brand-building rather than compete on price. That’s how can explain new company decides to create their own brand to create and capture value of brilliant product performance and quality, for developing a huge foreign market and more long-term business development. Small groups are getting ready to present their brand name, positioning statement and slogan based on analyzing the features of products.
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Study on the Transformation and Upgrading of Enterprise
Share Evaluation
Since the research team contributes its technology to become a shareholder, it is necessary to make a technical assessment about technology provided. This evaluation is mainly composed by the assessment agencies of securities qualification to complete intellectual property assessment, such as CSRC(China Securities Regulatory
Commission)
Notices on Contracts
1.
Agreed on the obligation of capital contribution of technical side.
Generally speaking, there are roughly three obligations of technical side: 1). The right to transfer formalities. China's "patent law" regulate that the assignment of the patent right must be registered and announced by the Patent Office of China to take effect.
Any technology transfer includes two aspects: one is the knowledge transfer, the second is right transfer. Last few years, many companies take in technical personnels, bringing technology and putting it in the enterprise running, and enterprise always tends to think they have had the technology. However, it just realizes the knowledge transfer, legally speaking; enterprise doesn't get the right to use the technology. If the personnel leaves the enterprise, it will likely trap into a dispute on the question of whether it allows the firm to continue to use technology. 2). Provide relevant technical data. 3). Take technical guidance and pass on technical knack.
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Study on the Transformation and Upgrading of Enterprise
2.
Avoid the risks of being abducted by technical side.
3.
Prevent the third party’s cooperation, so as to avoid that the technology is followed up.
Attach great importance to the acceptance check of technology capital contribution with defining acceptance criteria. Most parties doesn't appoint acceptance standard in the contract, and the law doesn't stipulate unified acceptance criteria. Consequently, technical sides think they have performed the obligation of capital contribution while investors believe technical sides’ contribution does not reach the designated position, resulting in legal disputes.
In addition, in order to prevent the high and new technology is transferred without the company’s authorization, we can consider the following measures in the investment cooperation agreement or the company's articles of association:
1. Expressly agree that intellectual property rights shall be owned by the company.
For example, the ownership of proprietary technology related to the high and new technology belongs to the established company exclusively. All parties promise not to rise opposite opinions at any time and any occasion, and it is not allowed to transfer in individual name.
2. Expressly agree upon confidentiality obligations with intellectual property right.
Limit the parties’ use and confidentiality of relevant intellectual property information and know-how. If not do so or not take the corresponding security measures, it will raise the risk of the parties arbitrarily using, transferring or leaking. What’s important, if the high and new technology is leaked illegally, it will seriously influence the
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Study on the Transformation and Upgrading of Enterprise commercial value of the company and interest of venture capitalists. Therefore, it can be considered in the contract articles about the confidentiality obligations and leaking penalty clauses for the high and new technology, and prevent the leakage of business secrets by formulating thorough enterprise business secret system.
3. Through the means of stock ownership incentive of technical staff to protect intellectual property rights. Under the driven of shareholders benefit, it will not only contributes to better use of new and high technology, but also to the protection of the patent right. Meanwhile, it makes a guarantee for subsequent development of high and new technology. For example, Yili group gives a large number of stock options for the core technical backbones, which stabilizes technical team and the enterprise's core competitiveness.
To sum up, in intellectual property investment, high technology and new technology enterprise mainly faces many legal risks from incomplete recognition of intellectual property’ range, rights defects of intellectual property, inaccurate assessment of intellectual property, limited period of intellectual property, transfer of intellectual property and so on. In a word, the main purpose is to cultivate staff’s dedication and the uniqueness of intellectual property rights.
Capital Rising
It is a high and new technology, and investment is likely to be attracted by a third party. As for the investment, it’s necessary to pass the audit and notify the both sides.
The correspondence between the cost of scientific research and sales market
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Study on the Transformation and Upgrading of Enterprise
To make the elevator pass the run-in period better and more quickly, what we need to do is to communicate with costumers and grasp the feedback. It’s necessary for company to master the service condition of the elevator, which will help the company to improve the technology.
Since it is a high and new technology, the company can apply to the Zhejiang
Province High and New Technology Bureau for high and new technology certification.
Secondly, it can apply to the Zhejiang Province Science and Technology Department for the high-tech enterprise. Ultimately, the company will get preferential of enterprise income tax reduction from Tax Bureau. It’s said that all companies who are identified as high-tech enterprises, the enterprise income tax rate will reduce from
25% to 15%. That’s to say, it is reduced by 40% in the original basis. At the same time it also can enjoy relevant preferential policies of city, province and nation, etc.
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Study on the Transformation and Upgrading of Enterprise
During the talk with Mr.Zhao, the boss of Sentai, we leaned a lot about how a company develops and what is a ideal aim or plan for a company. Combining with what he said, we come out with some recommendations for Sentai's long term development.
Sentai started as a trading company, then it turned into a tool-making company. As it grows larger, it has become a leader in local steel pipe manufacturer. But the road for manufacturing is narrow. As the competition in the same industry rises, a typical way that most manufacturing company would do is to build more factories, enlarge the scale of production and eventually cut down the cost. But this is not a solution, at least not a radical one. When the productivity of all manufacturers booms and the market comes to certain saturation, there's no more space for companies to chase higher profits. And the consequence is that you put 100 yuan as the cost of production and you only sell it at 101 yuan. Obviously, 1 yuan profit is not a good reward for a company.
At this particular turning point, Sentai needs transformation and upgrading which is exactly what it is doing now. From the two newly-born joint venture, Sentai has found a new way of developing. It will enter a brand new area and increase its efficiency.
But from long-term perspective Sentai should change its role as a producer into a investor. No traditional manufacturing company can stand for hundreds of years meanwhile consistently make vital breakthroughs that help maintain high profits. To maintain the operation of the steel pipe company and elevator company which is the major industry of Sentai, it needs to make adjustment and progress. A wise
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Study on the Transformation and Upgrading of Enterprise entrepreneur or a successful company not only knows how to hold its achievements but also knows to look for new business opportunities that may be the fashion and trends of the time. As Sentai accumulate enough capital, it should invest in more potential projects and products. It is better to invest also withdraw capital quickly to keep of the flexibility of capital and reduce the risk of investment.
In the future, many works of Sentai should be out-sourced and buying funds and stocks will become the appurtenance. Investing by currency and earning by currency is more flexible than manufacturing and there’s no need of equipments or considering how to reduce production cost. It is a great leap for a company.
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Study on the Transformation and Upgrading of Enterprise
Figure 3.1 Developing direction of the company
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Study on the Transformation and Upgrading of Enterprise
To make the research more organized, we have designed and distributed different assignments for each member of our group. It is helpful when we cooperate with each other during this work. Assignments are as follow.
Name Assignments
Zhao Shenghao
Designing the research direction
Designing group routines for on-the-spot research
Collating informations
Tong Qianxia
Analyzing data and making diagrams
Taking pictures and recording videos
Xu Luping
Designing questionnaires
Designing questions for interviews
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Study on the Transformation and Upgrading of Enterprise
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Study on the Transformation and Upgrading of Enterprise
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Toshiba elevator official website
（ download ： 2013/12/10 ）
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http://www.lawtime.cn/info/gongsi/zcjb/2010113074747.html
2010-11-15 （ download ： 2013/12/6 ）
16. http://www.lawtime.cn/info/gongsi/yzppyz/2010120376662.html
2010-12-03 （ download ： 2013/12/7 ）
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