Download Catch-up and competitiveness in China : the case of large by Jin Zhang PDF

By Jin Zhang

ISBN-10: 0203412869

ISBN-13: 9780203412862

This publication examines the function of company constitution, together with the position of company headquarters, within the luck of enormous organisations in China.

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Additional info for Catch-up and competitiveness in China : the case of large firms in the oil industry

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In industries in which new product development is a critical component of inter-firm competition, where R&D expenditures are high, state-of-the-art facilities costly, and marketing requires specialised skills, the corporate office needs to concentrate on the entrepreneurial (value-creating) function. Here it needs to play a strong role in the strategic planning process if it is to utilise fully the company’s existing competitive strengths in technologically advanced businesses and to determine paths for new product and process development.

However, control tends to be flexible and less tightly enforced in the strategic planning company than in the strategic control and financial control company. It stresses decentralisation, and values strategic direction. Nevertheless, performance targets are set flexibly and reviewed within the context of a long-term strategic process. 1 Corporate styles and characteristics. Styles Characteristics Strategic planning . . . Strategic control . . . Financial control . . . Complex but coordinated corporate structure Extensive planning process Strong central leadership Flexible controls More focus on long-term goals and strategy Decentralised profit centres and divisional co-ordination Extensive and strategic planning process Business autonomy Tight controls Balance long- and short-term objectives Separate profit centres Budgetary planning process Business autonomy Focus on short-term objectives Tight controls Source: Goold and Campbell (1989).

Penrose, 1995: 261) Penrose treats the firm as an administrative organisation and a collection of productive resources rather than the textbook ‘firm’ defined as a cost curve and demand curve operating under the logic of optimal pricing and inputs. ‘(T)he productive function in a modern economy is carried out by autonomous administrative organisations with mind and capacities of their own. . The firm has the power to mould the environment, and to add new possibilities to its own information’ (Marris, 1967: 112–13).

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