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The Study of the Model of China’s Housing Industry Based on the Theory of Modular Organization

Author: PanGuiSen
Tutor: YuYang
School: Jilin University
Course: Business management
Keywords: Housing industry Modularization Modular organizations Modular housing industry group
CLC: F293.3
Type: Master's thesis
Year: 2010
Downloads: 262
Quote: 3
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Abstract

Housing industry is an inevitable strategic choice of the real estate industry. China has promoted the housing industry for ten year actively, but the progress is very slow in the absence of the suitable development model. The author hopes to introduce the modular organization theory to the housing industry to find an appropriate development model. Speeding up the process of housing industry is the construction of economical society. On the course of the study, the author employed the comparative analysis, empirical research and other methods.The background of research is that the gap of the housing industry level between China and industrialized countries is growing large. After World War II, the United States, Japan and Europe had undergone the process of the housing industry from the junior to senior, from the group housing system to the whole society, and gradually developed into the industrial track. In this case, the experience of the developed countries is very instructive. We should be fully aware that the housing industry is a gradual process. The government should gradually create the suitable environment for promoting housing industry. Meanwhile, big real estate enterprises are the core strength to achieve the strategic housing industry. It is important to mobilize the enthusiasm of enterprises to participate in the process of China’s housing industry.Modular is the process of decomposition and integration of a complex system. The modular theory is gradually rising in recent years, especially from the late 20th century. Since the 90’s, Aoki and Ando Haruhiko relatively committed to research modular theory independently and focused on the automobile industry as the main object. Under the guidance of the modular theory, a new organizational structure between a range of markets and enterprise groups appears. This new organizational model has the advantage of synergy between members. Modular organization theory has been introduced to the specific practice areas to guide the industry chain and large group companies to complete modular transformation. So, can modular organization theory be applied to transform the housing industry? If founding suitable development model, we will find a breakthrough in promoting the industrialization process.The author found that they are not without "intersection" of two parallel lines between the modular organization theory and housing industry theory. The modular theory has been widely used in China’s housing industry at the product level and technical level, but the applications of modular organization are few. On the basic of analysis about current development pattern of China’s housing industry, the author also found that the real estate business alliance model is precisely the type of a quasi-modular organization through the establishment of the Group to promote the housing industry. Thus, the modular organization theory can be applied to the housing industry in the management process of organizational level. The development model under the guidance of the theory of modular organization is the "intersection" of the two theories for what we are actively looking. Combined with China’s national conditions and development experience of developed countries ,we can find that Modular Housing Industry Group model is the best model to speed up China’s housing industrializations ,which is based on the modular organization theory.However, finding out the development model is just the first step to solve the problem, and a comprehensive analysis should also be implemented to find the operational management. Adequate market capacity, the support of government level and the actively participating of some large enterprises are the important conditions. Only when these conditions are available, the modular housing industry groups can be set up. In specific operations, the modular housing industry groups will drive and promote the business combination of the new cooperative networks. Big real estate companies are the centers of the system information and play the leading roles, while other members of the enterprise are required to exert their strengths and abilities to contribute to the completion of the task. The biggest advantage of this model is able to capitalize on the advantages of industry chain enterprise resources to more quickly meet diverse needs of the market with industrial advantages. Vanke Group, China’s first real estate company of "industrialization of residential construction mode" , is the best evidence to prove that Modular housing industry group model is feasible.To find the suitable development model under the guidance of modular organization theory is quite profound. Not only we can speed up the development process of China’s housing industry, but also the theory of modular and the modular organization expands its application. Of course, one development model can’t adapt to all situations and solve all the problems. So the development of other models can still play a very good complement. Through the joint efforts of the participating subjects, China must be able to successfully achieve the goals of housing industry.

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