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Study on Development Strategy of Xinsha Collective Share Cooperative Company

Author: WenWenChao
Tutor: BaoGuoXian
School: Lanzhou University
Course: Business Administration
Keywords: Xinsha Company Urbanization Strategy
CLC: F279.26
Type: Master's thesis
Year: 2011
Downloads: 39
Quote: 0
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Abstract


China is in the rapid process of urbanization, How to maintain the sustainable development of the original rural collective economic organizations in the process of urbanization? This is an important issue that is related to rural area, farmers’issue and the achievement of the common prosperity for both urban and rural. In this article, Shenzhen XinSha Collective Share Cooperative Company is used as an example. Through the study of the future development strategy for the company, it tries to explore the future development model of the rural collective economic organizations.Based on the internal and external environment of XinSha Corporation, especially the research of the expectations of shareholders, the basis of strategic decisions for the company is obtained; the particularity of the company is also found. XinSha company focus on development and operation of the free government allocated collective development land in the process of urbanization. Under the condition of development of land are almost completed, existing properties are fully let, the shareholders do not to support leveraged investments, and do not agree with investing in new industries and field, the growth of the company has reached a certain limit, according to the theory of competitive strategy, the formulation of corporate strategy for future development is in necessitous circumstances.Business ecosystem theory is used in this article, after the analysis for the range of collective development land and XinSha Area business ecosystem, another beneficial joining point between the company and the shareholders is found:the lease value of land use right for collective development land, another way that creates value for shareholders is also found:that is to enhance the co-evolution of ecosystem members for the area by strengthening the competitive advantage of the ecosystem, and promote the rental value of land use rights in the area. XinSha Company maintains steady growth in the same time creates more value for shareholders.Based on the analysis results above, the leadership strategies of area business ecosystem are established for XinSha Company. Namely:strengthening leadership of the area business ecosystem for XinSha Company; continuing investing and transforming Municipal infrastructure and the public supporting facilities; in addition, establishing the area property leasing platform, implementing of the standardization of houses of the villagers; moreover, to implement service providers’access and exit mechanism in the area; furthermore, optimizing social management and services for the area is to gain government support and assistance. Ultimately, improving the use efficiency of land resources in the area and achieving the common growth for both company and indigenous villager’s benefits.Through seeing the new development strategy of XinSha Company, for most of the original rural collective economic organizations, receiving rent is the main source of profit in the process of urbanization, as urban area develops to a certain level, the means to increase land value will be to grab urban and rural land gradually shift differential rent on the business ecosystem to maintain its competitive advantage, which in turn comes from the living environment and living convenience level of the area. This gives the direction to such organizations:they should be well-planned for land use in advance to avoid the low level of development and use, prevent the widespread dirty, chaotic, poor phenomenon in the current area environment, so that it can maintain the long-term, sustainable development. Finally, the integration into the city for both farmers and rural collective economic organizations can be achieved.

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CLC: > Economic > Economic planning and management > Enterprise economy > Companies around the world economy > China > Individual enterprise economy
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