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The strategic choice of Chinese enterprises for high-quality development in the post epidemic Era

Jun 08, 2022

The spread of COVID-19 has caused great damage to human health, the global governance system, the global economy and financial stability. The adjustment of the Federal Reserve's monetary policy, the disorder of the global supply chain and the evolution of the situation in Russia and Ukraine have further exacerbated the complexity and uncertainty of the external environment for China's economic development. The main body of the market is an important foundation for stabilizing the economic base. How Chinese enterprises maintain high-quality development in the post epidemic era is a major issue that must be faced.

In february2022, the Central Committee for comprehensive deepening reform deliberated and approved the guiding opinions on accelerating the construction of world-class enterprises, and put forward the 16 character standard of "excellent products, outstanding brands, leading innovation and modern governance" for world-class enterprises, pointing out the direction and providing guidance for deepening enterprise reform and taking the road of high-quality development. In the face of the complex global environment in the post epidemic era, the high-quality development of Chinese enterprises should adhere to the five new development concepts of innovation, coordination, green, openness and sharing, accelerate the digital transformation of enterprises, and create a "China plan" for building outstanding enterprises and world-class enterprises in the new era.

Create an innovation engine

Enhance the power of high-quality development of enterprises

Innovation is the first driving force for development. Only by persisting in innovative development and constantly promoting innovation in technology, products, quality, management and system can we create more and better high-quality products, meet the growing and escalating diversified, multi-level and multi-faceted needs of the people to the greatest extent, and enhance the driving force for development.

In the post epidemic era, enterprises realize innovation driven development. First, adhere to strategic innovation, correctly understand the internal and external development environment, timely update and adjust the business philosophy, adhere to the production and supply of products with core values, and establish a modern enterprise management system.

Second, the allocation of enterprise resources should be inclined to innovation, establish an institutional system and incentive mechanism to guide and support internal innovation and collaborative innovation, ensure the supply of talents, funds and materials, and support enterprise product innovation and technological innovation.

Third, create an open innovation discussion atmosphere, encourage employees and relevant collaborative resources to participate in the R & D process of the project, brainstorm, and timely optimize and upgrade enterprise products and services.

Fourth, strengthen technology and product innovation, establish a market research and feedback mechanism, grasp the real needs of product and technology innovation, provide perfect overall solutions, and seek a broader market.

Improve the industrial chain

Improve the coordinated operation efficiency of enterprises

Only by adhering to coordinated development, maintaining core values in the industrial chain, making overall plans and coordinating all parties can we achieve a dynamic balance between production and needs, make coordination an endogenous characteristic of enterprises, improve the overall efficiency of economic operation, and enhance the coordination of development.

As early as before the outbreak, with the reconstruction of the global value chain system, the in-depth adjustment of the global supply chain has begun. The outbreak has exacerbated this problem.

China's "fourteenth five year plan" proposes to form an industrial chain supply chain with stronger innovation, higher added value, and more security and reliability. The COVID-19 has ravaged the world, caused a huge impact on the world economy, and accelerated the reconstruction of the global value chain. China has made good achievements in epidemic prevention and control and economic recovery, providing a window of opportunity for China to win the initiative in the reconstruction of the global value chain.

In order to cope with the supply chain adjustment caused by the epidemic, enterprises should predict in advance and take the initiative.

First, create diversity in the supply chain, reduce the dependence on a single supply source, and enhance risk resistance.

Second, enhance the competitiveness of the value chain through the integration of the value chain. We can explore the integration of upstream and downstream links of the value chain through green space investment or mergers and acquisitions, strengthen the positioning of the industrial value chain with core competitiveness, or consider stripping or outsourcing non core production, material flow or other operation links to focus on resources and energy to build the core competitiveness of the enterprise.

Third, improve the efficiency of the supply chain through flexible shaping of the supply chain, cost control and digital transformation.

Create a green brand

Guarantee the sustainable development quality of enterprises

Adhere to green, low-carbon and brand development, realize the coordination and unity of economic and social development and ecological environment protection, make green a characteristic brand, and enhance the sustainability of high-quality development of enterprises.

ESG is an evaluation system focusing on environment (E), social responsibility (s) and corporate governance (g). It is a new value concept and evaluation tool. It is a standard for investigating the sustainable development potential of enterprises, and will profoundly affect the development direction of the real economy.

Especially in the post epidemic era, adhering to green development, implementing brand strategy and paying attention to ESG evaluation complement each other. We should not only practice the concept of simplicity, moderation, green and low carbon in our work and life, and gradually integrate it into the whole process of operation management and project cost control, but also focus on market-based brand, professional development, vigorously enhance the brand image of green development, and accelerate the expansion of emerging fields through the implementation of brand strategy, Promote the high-quality development of enterprises.

When enterprises practice the ESG concept, from the perspective of environmental responsibility, they need to focus on the first is the energy consumption structure and energy efficiency; Second, pollutant discharge and technical improvement efficiency; Third, industrial structure and technological innovation ability.

From the perspective of social responsibility, it is necessary to focus on the following: first, the competitive possession and overuse of social resources such as natural resources, financial resources and human resources, resulting in resource mismatch, overcapacity, high leverage and low efficiency; Second, the lack of commercial credit constraints in market competition leads to excessive infringement of the reasonable interests of interested parties, and the prevalence of counterfeiting and speculation; Third, as a community of interests, enterprises lack the responsibility of sharing interests and the awareness of protecting the interests of minority shareholders, employees and customers; Fourth, social responsibility challenges brought about by new technologies and new business forms,

For example, big data application enterprises infringe on the interests of consumers and employees through algorithm discrimination.

From the perspective of corporate governance responsibility, we should focus on dealing with the relationship between the controlling shareholders and minority shareholders, so as to avoid the controlling shareholders from eroding the legitimate rights and interests of minority shareholders; Second, the relationship between the company's own interests and the public interests to avoid the externalization of the company's operating costs and risks.

Create an open ecology

Expand the new pattern of high-quality development of enterprises

Only by adhering to open development and actively following the historical trend of economic globalization can we improve the linkage between internal and external development, make better use of two markets and two resources, and enhance the inclusiveness and expansibility of development.

On May 14, 2020, the meeting of the Standing Committee of the Political Bureau of the CPC Central Committee proposed for the first time to "deepen the supply side structural reform, give full play to China's super large-scale market advantages and domestic demand potential, and build a new development pattern in which domestic and international dual cycles promote each other". China has begun to shift from the development mode of "two ends at the outside" to the new development pattern of "double circulation" of "giving priority to the inside and promoting the inside and the outside".

In the post epidemic era, enterprises should strengthen their opening-up and development. First, they should deeply tap the potential of domestic consumption upgrading and capacity expansion. Enterprises should focus on the strong purchasing power and strong willingness of growing middle-income groups, the huge release of rural consumption potential, and the growing supply of consumer finance under the continuous improvement of the social security system, leading the healthy development of a new round of consumer market.

Second, actively improve the ability to allocate global resources. Relying on the "the Belt and Road", enterprises can focus on foreign investment and construction business in infrastructure, transportation, power and other fields, actively explore ways of foreign investment such as the combination of investment and trade, financial leasing, cross-border mergers and acquisitions, and strengthen the intensive cultivation of overseas investment.

Firm shared thinking

Cherish the high-quality development achievements of the enterprise

Sharing is the core concept of common prosperity. Enterprises are basic economic units that meet social needs and engage in business and production. They are an important force to expand employment, improve people's livelihood and promote innovation. Realizing the common prosperity of all people is the sacred mission given to enterprises in the new era, and it is also the internal requirement for them to undertake social responsibility.

Especially in the post epidemic era, while ensuring high-quality development, enterprises should strengthen the sharing thinking, do a good job in the initial distribution, and actively contribute to the re distribution and the third distribution.

First, we should establish a scientific and reasonable distribution system, do a good job in the initial distribution, pay attention to the coordination between efficiency and fairness, take distribution according to work as the main body, improve the distribution system according to factors, improve the salary and incentive mechanism, and ensure the welfare level of employees.

Second, we should operate legally, constantly improve the scientificity and standardization of the financial system, pay taxes according to law, withhold and pay personal income tax for employees in full, strictly control risks, actively contribute to redistribution and ensure sustainable development.

Third, actively respond to the call of "getting rich first, driving the future rich", pay attention to public welfare and charity, pay attention to underdeveloped areas and social vulnerable groups, actively participate in social public utilities such as education, employment, medical care and elderly care, create opportunities and provide security for low-income groups, take the initiative to bear social responsibilities, and encourage employees to use their spare time to participate in public welfare activities.

Carry out digital transformation

For the high-quality development of the enterprise

Through this epidemic, Chinese enterprises have carried out digital transformation exploration, further developed digital viability, digital development capability and digital collaboration capability, and formed a new business model integrating online and offline. Enterprises upgrade their products and services by expanding online sales channels, rapidly changing production, improving technology and management, etc; Use new technologies such as the Internet and artificial intelligence to improve production methods and upgrade products and services.

Although the epidemic has brought great challenges to enterprises, it has also accelerated the transformation and upgrading of enterprises to a certain extent, and accelerated the process of mergers and acquisitions in some industries, eliminating backward production methods and optimizing the structure. Accelerating online and offline integration is an active choice for enterprises to actively transform and embrace digital opportunities. As a new economic form, digitalization has objectively improved the enterprise's factor allocation mode, improved the operation efficiency, and inserted a take-off wing for the high-quality development of enterprises.

"Actively seeking change" to carry out digital transformation, first, pay attention to the basic needs of digital transformation, including using 5g, cloud computing, blockchain and other new generation information technologies to build a basic digital technology platform, build a systematic management system, build a data governance system and improve the equality of security, water protection and protection.

Second, pay attention to the digital innovation of the industry, including promoting the digital transformation of products and services, intelligent production and operation, agile user services, ecological industrial system, etc.

Third, pay attention to the development of digital industrialization, including new infrastructure construction, key core technology research, digital services in new fields such as energy Internet, etc.

The integration of digital technology and the real economy is an urgent task and a general trend. The recently approved project of "counting from the east to the west" is an important specific starting point for the new infrastructure construction under the new pattern of double circulation, providing a broad stage for the digital transformation and high-quality development of enterprises.