Small and medium-sized enterprises (SMEs) have become an important carrier for the synchronous development of China's multi-ownership economy, and business strategy is the most effective method and foundation to achieve the goal of small and medium-sized corporate vision. Based on the analysis of the current business strategies of small and medium-sized enterprises, combined with the characteristics and reality of small and medium-sized enterprises in China, this paper introduces and analyzes three business strategies that can be adopted by small and medium-sized enterprises, namely virtual operation, strategic alliance and transnational operation, in an attempt to provide thinking and reference for the development of small and medium-sized enterprises in China through the analysis and discussion on the formulation and implementation of business strategies.
Keywords: small and medium-sized enterprises; Business strategy; Virtual management; Strategic alliance; multinational operation
First, the role of small and medium-sized enterprises in the national economy and economic analysis
(A) the role of small and medium-sized enterprises in the national economy
In China, supporting and developing small and medium-sized enterprises is a long-term and stable basic policy. As a part of the market economy in the primary stage of socialism, small and medium-sized enterprises are an important part of the national economy, a powerful and flexible supplement to the market under the public ownership economic system in China, and play an indispensable role in promoting market competition, diversification of enterprises and commodities. If large enterprises are "bricks and stones" representing a country's economic strength, then the development of small and medium-sized enterprises is "cement mortar" representing the vitality of a country's system. The competitiveness of a country is not only reflected in large enterprises, but also in small and medium-sized enterprises. These two functions complement each other and are indispensable. Supporting the development of small and medium-sized enterprises is an important guarantee to enhance the strength and competitiveness of large enterprises, and the development of large enterprises cannot be separated from the help of small and medium-sized enterprises. Large and medium-sized backbone enterprises reflect the national strength, while thousands of small and medium-sized enterprises inject vitality into the economy. The CPC Central Committee and the State Council put forward the policy of "grasping the big and releasing the small", both of which are indispensable.
(B) the economic analysis of the importance of SMEs in economic development
Why do small and medium-sized enterprises play such an important role in economic development under the market economy system? Basic economic analysis tells us that enterprises have boundaries, not the bigger the better; Comparative advantage and social division of labor based on comparative advantage. It is precisely under the impetus of the economic laws revealed by these basic economic principles that enterprises must be a group of large, medium and small enterprises in a reasonable layout and maintain their own economic and ecological balance. Therefore, the existence of small and medium-sized enterprises plays an irreplaceable role in maintaining economic and ecological balance.
Second, the importance and present situation of business strategy in the development of small and medium-sized enterprises
(A) the importance of SMEs to develop business strategies
With the change of market from seller's market to buyer's market, and the arrival of information age and knowledge economy age, small and medium-sized enterprises in China are facing different business environments. Especially with the opening-up after China's entry into WTO, China's small and medium-sized enterprises will face the strong impact of imported goods, and the market situation will be more severe.
In order to gain a firm foothold in the fierce market competition, small and medium-sized enterprises must formulate and implement short-,medium-and long-term business strategies suitable for their own conditions, respect the laws of market economy, take into account the social factors in each period, and form their own unique competitiveness. Business strategy analyzes the internal and external environment and capabilities of an enterprise, and establishes an ideal business plan, because business strategy is the most effective method and foundation to realize the enterprise's prospects and goals.
Only a business strategy with long-term development vision can correctly guide enterprises to use limited funds, manpower and material resources in market competition, adapt to the needs of the market at any time and not be eliminated by the market.
(B) the status quo of SME business strategy
At present, the present situation of small and medium-sized enterprises in China is worrying.
First of all, in a strict sense, most small and medium-sized enterprises in China have no real business strategy. The present situation of the establishment and operation of these small and medium-sized enterprises stems from the timely utilization of local resources and short-term market demand. Some of their plans are not from an objective point of view, nor from the development trend, so they are quite limited, short-term and blind.
Secondly, even though some enterprises have started or begun to study the strategic positioning of their business, they are not completely divorced from the pattern of government-led system in the planned economy period in guiding ideology, specific content and implementation, and are deeply branded with the planned economy. The business strategy based on this positioning can't adapt to the fierce and even cruel market competition at all, and some will inevitably become deformed children of the bubble economy.
In addition, China's market economy system has just developed and improved, and supporting laws and policies need to be further improved.
In this specific social, political and economic environment, China's small and medium-sized enterprises do their best to solve the problems of enterprise survival and staff feeding, and have no time to take into account the systematic research and implementation of enterprise management strategy.
Third, small and medium-sized enterprises can adopt business strategies in their development
The strategic management of large enterprises is usually a clear and formal process, through which enterprise managers organize enterprise operations and make positive responses to complex and dynamic environments. Due to the different scale of enterprises, the strategic management techniques adopted by many large enterprises are not necessarily suitable for small and medium-sized enterprises. The strategy of small and medium-sized enterprises is rarely formal, and sometimes it may even be hidden and unclear. Therefore, when making business strategies, small and medium-sized enterprises should first try to make the best choice in direction and type. When choosing a strategy, we should generally follow the following principles: the principle that the future product management direction of an enterprise is consistent with the survival and development strategy; The principle of consistency between enterprise's specific environment and business strategy; The principle of consistency between enterprise's potential core competence and business strategy; Multi-type optimization principle. On the basis of this principle, according to the present situation and characteristics of the strategic positioning of small and medium-sized enterprises in China, small and medium-sized enterprises can consider the following business strategies in their development:
(A) Virtual management
Virtual management is essentially a resource allocation model that borrows and integrates external resources to improve the competitiveness of enterprises. In this mode, enterprises can obtain functions such as production, design and marketing. , but they don't necessarily have entity organizations corresponding to the above functions. Virtual management focuses on the utilization of resources, not the control of resources. The goal it pursues is to weaken the organizational structure of the entity as much as possible, maximize the use of external resources, and achieve the goal of "leveraging the momentum" in all directions. One of its remarkable characteristics is that affiliated enterprises still maintain their independent legal person status. Therefore, virtual operation has a leverage effect on the development of small and medium-sized enterprises, and thus the organizational structure and operation mode of modern enterprises have undergone fundamental changes. The core business deployed inward is closely linked with the business deployed outward, forming a relationship network, that is, virtual economic organization. The management of enterprises will also change from "control-oriented" to "utilization-oriented".
Virtual management is undoubtedly of far-reaching significance to small and medium-sized enterprises in China. Because for small and medium-sized enterprises, specialized division of labor is the main link of virtual operation organization of small and medium-sized enterprises, and it is also the realistic basis for implementing virtual operation; The development of information technology makes it possible for small and medium-sized enterprises to successfully implement virtual business strategy, and information technology has cast a brand-new platform for the docking of small and medium-sized enterprises and virtual business strategy; Institutional innovation is actually the embryonic form of virtual management, an advanced organization form created by small and medium-sized enterprises, and a typical virtual management model; Compared with the complex hierarchical structure and inefficient investment of large enterprises, the advantages of technological innovation are that the driving mechanism is more effective, the innovation demand is more urgent and the innovation cost is lower. Therefore, with these advantages, small and medium-sized enterprises can make full use of these favorable conditions of virtual operation and actively carry out virtual operation.
(2) Strategic alliance
The so-called strategic alliance refers to a loose network organization in which two or more enterprises seize and take advantage of rapidly changing market opportunities for a certain purpose or to achieve strategic goals, and form complementary advantages, bear risks and flow elements in two or more directions in a certain way. Strategic alliance is spontaneous, and all parties in the alliance maintain the operational independence of the original enterprise, which has the characteristics of fuzzy boundary, efficient operation and flexibility. For each member enterprise, it is essentially a strategy that follows the trend. With the help of external force, it integrates the external force and external resource advantages of enterprises to achieve integration and create extraordinary competitive advantages. Therefore, strategic alliance enables enterprises to respond to "individual strength" with "system strength" and easily occupy an advantageous position in the competition.
In the fierce market competition, faced with the strong competition of large enterprises that have formed advantages in capital, technology and scale, small and medium-sized enterprises must stand at a strategic height, not limited to short-term interests on the premise of ensuring their own survival, adopt flexible forms and means, combine vertically and horizontally, give full play to each enterprise's own advantages, and face the competition of large enterprises in the market with overall competitiveness.
(3) transnational operation
Since the reform and opening up, a considerable number of enterprises in China have embarked on the road of transnational operation to varying degrees. However, most enterprises engaged in transnational operations are large domestic enterprises or groups, and although small and medium-sized enterprises are involved in this field, they are few. Transnational operation involves the extension of enterprise business network to foreign countries, and different business environments may lead to great risks. Small and medium-sized enterprises have small scale, single product structure, weak talent attraction, weak brand image and lack of funds, which makes it more difficult for them to implement transnational business strategy. Generally speaking, the success rate and profit rate of transnational operation of small and medium-sized enterprises in China are lower than those of large enterprises and enterprise groups. However, judging from the experience of transnational operation in developed countries, it is an inevitable stage for a country to change from large enterprises to small and medium-sized enterprises in order to enhance its international competitiveness. The entry of small and medium-sized enterprises into the international market not only conforms to the trend of market internationalization, but also greatly resolves its unfavorable factors in the domestic market, which is of great strategic significance to China, where small and medium-sized enterprises account for about 99% of the total number of enterprises.
Four, small and medium-sized enterprises should pay attention to the implementation of business strategy
(a) to analyze and master the government's macro policies and regulations.
It is necessary to analyze and master the directional trend of the government's macro policies and regulations for this industry. We should not only understand today's policies, but also understand the government's policy orientation for this industry in three to five years.
(two) respect for the market, the market as the criterion to test the business strategy of enterprises.
As a constantly changing objective entity, the market has its own objective laws, which are influenced by policies in different periods, the contradiction between market supply and demand, consumers' customs and habits, consumption levels and other factors. Therefore, there are certain risks for enterprises and operators. We should grasp the pulse of the market at any time, respond in time according to the new changes in the market in each period, constantly adjust the strategic policies of enterprises in each period, and minimize the operational risks brought about by market instability as much as possible, so as to survive in the fierce competition.
(3) Establish corporate image with the help of brand effect and improve corporate efficiency.
Enterprises should gradually establish their own brands in the market competition. Brand, in a narrow sense, refers to the logo that distinguishes enterprise products from similar products in market competition, that is, trademarks; Broadly speaking, a brand is the image that an enterprise establishes for itself in the market. With the help of brands, enterprises can improve their awareness among consumers, and gradually improve their trust in the minds of consumers through continuous self-improvement, so as to gradually occupy market share and increase market share in the process of consumers' consumption.
(D) Strengthening management innovation is the eternal theme of enterprise development.
Small and medium-sized enterprises generally start late, and most of them implement family management. There are family culture, paternalism and corresponding ethics in enterprises. Although it can play a positive role in the initial stage of entrepreneurship, with the development and scale expansion of enterprises, negative factors are becoming increasingly obvious, such as irregular management mode, strong randomness, inability to guarantee product quality, and weakening market competitiveness of enterprises. The serious lag of enterprise management has become a bottleneck restricting inland small and medium-sized enterprises to enter the international market. To strengthen management innovation, we must first reform the organizational structure of enterprises, and on this basis, realize internal integration as soon as possible and strengthen internal management.
(5) Pay attention to and cultivate talents.
In the final analysis, the competition among enterprises in market economy is the competition of talents. On the one hand, enterprises should take active and effective measures to stabilize existing talents, strengthen the training of employees, and constantly improve the professional and comprehensive quality of employees. On the other hand, we should take advantage of favorable conditions to actively introduce top-notch high-tech talents in urgent need and give play to their unique advantages. Don't stick to the rules in employing people, boldly employ people of insight and innovative talents, and actively reserve talents.
Verb (abbreviation of verb) conclusion
As an important growth point of the national economy, small and medium-sized enterprises have become an important carrier for the synchronous development of various ownership economies in China, and business strategy is the most effective method and foundation to realize the prospects and goals of small and medium-sized enterprises.
On the basis of normative theory analysis, this paper first points out and analyzes the importance of small and medium-sized enterprises in the national economy. By analyzing the present situation of small and medium-sized enterprises' business strategies, combining with the characteristics and reality of small and medium-sized enterprises in China, this paper introduces and analyzes three business strategies that can be adopted in the development of small and medium-sized enterprises: virtual operation, strategic alliance and transnational operation. Finally, six problems that small and medium-sized enterprises should pay attention to when implementing business strategy are given to ensure the smooth implementation of business strategy. This paper attempts to provide thinking and reference for the development of small and medium-sized enterprises in China through the analysis and discussion on the formulation and implementation of business strategies for small and medium-sized enterprises.
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