留学生essay文献综述An Investigation of Development Strategies of Shenzhen Rainbow Shopping Mall - 蜂朝网
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留学生essay文献综述An Investigation of Development Strategies of Shenzhen Rainbow Shopping Mall

时间: 2014-01-16 编号:sb201401161097 作者:蜂朝网
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文章摘要:
企业战略理论是关系到发展的企业长期发展方向。它无处不在企业管理活动在任何时候。它包含的商业价值,长期目标和行动完整的程序。因此,战略决定了企业的生存之道。

Literature Review


Corporate Strategy Theory


Corporate strategy theory is related to corporate long-term direction of development. It is everywhere in enterprise management activities at all times. It includes the business value, long-term objectives and complete program of action. Therefore, the strategy determines the survival of enterprises.

Meaning of corporate strategy

The original intent of the strategy refers to the overall planning and guidance of war. Well-known management scholar Chandler (1969) in his book "Strategy and Structure: Chapters in the History of the American Industrial Enterprise" defined the strategy as: “to determine the long-term goals and objectives, and through business activities and allocation of resources to achieve strategic objectives.

The famous American strategist Ansoff (1965) in his book "Corporate Strategy" claimed that: corporate strategy refers to decide what and why you want to do.

Many of scholars in China also made all kinds of description on corporate strategy:

Corporate strategy is in order to adapt to future changes in the environment, the enterprises developed the long-term development objectives and the overall program on the basis of fully understanding of the market environment and their own conditions.

Corporate strategy refers to the overall plan that effectively organizes and uses the internal resources on the basis of business to adapt to the external environment, to make the guidance of the entire business activities.

Corporate strategy refers to under the conditions of commodity economy the enterprise to seek long-term survival and development, on the basis of understanding the external environment and internal conditions change, combined business expertise and foresight to make the overall plan.

To sum up, the corporate strategy refers to the purposeful manner in the case of considering the various resources to develop and achieve these goals. In short, corporate strategy is a long-term planning of corporate development.


Schools of corporate strategic management theory


(1) Design school

Chandler (1969) in his book " Strategy and Structure: Chapters in the History of the American Industrial Enterprise" pointed out that business strategy to adapt to environmental changes, the formation of the organizational structure must change with the enterprise's strategic changes in demand. According to this view, the representative of the design school – Andrews in the Harvard textbook, proposed the four elements, including the market opportunities, company strength, personal value ​​and desire, social responsibility strategy, which fully considers the impact of internal and external environment on the enterprise (Mintzberg, 1990). In addition, he also divided the strategy into the development and implementation of two stages, and argues that developing strategy is the matching process around the development of core competencies to make the internal and external balance.

Design school claims that development of strategy is the process for leader’s informal sense of the idea, and establishes a well-known SWOT strategy formulation model. This model is also the foundation of the design school. The model suggests that the most important factor in the formation of strategy is the match of external and organizational factors (Learned et al., 1995). As Andrews pointed out, strategy is to match the company's strengths and opportunities. This match positions a company in the environment into which he lived. Therefore, the model considers the threats and opportunities facing enterprises (external evaluation) and the strengths and weaknesses of the enterprise itself (internal evaluation). Mintzberg et al. (1998) helpfully includes a diagram shown in Figure 2-1.

(2) Planning school

The time for the emergence of planning school is similar to design school, and the earliest representative of writings was undoubtedly the Ansoff’s "Corporate Strategy" published in 1965. Ansoff (1965) suggested that the strategy should include four elements:

Product and market areas, namely, to determine the status and position of the enterprises in the industries

Growth vector, the direction and trend of business

Synergistic effect, namely, the combined resources return effect that greater than the sum of independent creation of some of the resources by the company

Competitive advantage, namely, the special factor of enterprises and their products and market different from the competitors have to lay a strong competitive position for the enterprise. This not only develops the strategic theory, but also plays a very important role in guiding Western enterprise management activities as well as enterprise management. 

Under the guidance of this concept, planning school to the maximum extent pursues the formalization of the strategic decision-making. Relative to the kind of loose strategic framework by the design school, planning school lists a series of carefully designed steps that must be considered. Ansoff's (1965) strategic plan model uses 57 small boxes and a lot of arrows and diagrams to describe the strategic decision-making process in detail. In the next decade, the theory of planning school is widely promoted. Driven by Steiner and Ackof, the theory is further with the actual combination, resulting in the experience curve, growth - share matrix, market share and profitability contact (PIMS) concepts and research methods, which greatly enriched the theory of strategic management.

In practice, the planning school begins with an “objectives-setting stage”, followed by an “external audit stage” and an “internal audit stage”, which are achieved by relying on “hard data” shown in Figure 2-2.

(3) Learning School

The strategy process of planning school is such a process for development of strategy - implementation of strategy – achievement of strategy. However, according to the study of the strategic process and effect, in reality, many organizations’ pre-established strategy has not been achieved, but achieved natural display strategy that has not been formalized. As a result, the kind of plan view in the 1970s and 1980s received more and more suspicion and criticism, many scholars began to study the organization’s bounded rationality, the opportunities appeared in politics, power and selection, and put the focus on the implementation of the strategy and priorities on the organization adaptability in unpredictable or unknown internal and external factors constraint.


(4) Positioning school

Positioning school is such a school based on Michael Porter as a representative. Potter was seriously affected by Mason (1939) and Bain (1956). In 1980, he proposed, considering the competitive strategy the enterprises must link the business with the environment, the industry is the most direct business environment; each industry structure determines the scope of the competitiveness of enterprises, thus determining potential level of profits. In this vein, the core of corporate strategy is to gain a competitive advantage, and usually there are two factors obtain competitive advantages: one is the enterprise’s profitability in the industry, namely, the attractiveness of the industry; the other is the relative competitive position in the industry. Therefore, to gain a competitive advantage the enterprises must select the attractive industry. Figure 2-4 lists the positioning school’s knowledge network. Looking at its dialectic network of knowledges, the Positioning School is clearly both consultancy-driven and programmatic: and much like the Design School, it repackages negotiation as deduction, and rhetoric as science. In fact, it is hard not to draw the conclusion that, for this school, “strategic knowledge” is oxymoronic - everything in this diagram is either assumed or implicit+


This means that the primary task of strategic management is to select a potentially highly profitable industry. Around the proposition, the school used a variety of methods and techniques to analyze the situation of the enterprise in the industry. Among them, the most famous method is the five competitive forces model proposed by Porter (1980). This model shows that the profitability of the industry depends mainly on suppliers, buyers, current competitors, potential entrants, and substitute products of these five factors (Porter, 1980). The second strategic task for companies need to consider is self-positioning in the selected industries. The positioning of enterprise determines the profitability is above or below the industry average. Appropriately positioned enterprises can still obtain a higher profit when the industry is not satisfactory, or the average earnings are low. At this point, the enterprise can be combined with the specific situation to select appropriate strategies to enhance or weaken its competitive position in the industry.

(5) Resources school

Early in 1937, Coase mentioned that through the formation of an organization and the use of certain rights to guide resource use, people can save some of the market cost, which is the earliest understanding of corporate resources. Later, the design school and planning school consider the training and management of internal resources as the fundamentals of the business healthy competition. In the 1980s, Cool and Schendel (1987) through a number of cases in the pharmaceutical industry, further defined the special ability is the important reason for their performance differences. Hamel and Prahalad (1994) on the basis of research on the experience of the world's best companies put forward that the real source of competitive advantage lies in the managers merged the company-wide technologies and production skills into the business that can adapt quickly to changes in the ability of opportunity. In the 1990s, with more and more enterprises made benefits due to the development of core competitiveness, resources school is also increasingly subject to people's attention. This school argues that each organization is the combination of independent resources and ability, and this combination becomes a strategy basis. In addition, the school also assumes that the resources and capabilities of each company are not the same, and the companies in the same industry do not necessarily have the same strategic resources and capabilities. In this way, the unique resource differences and the use of these resources become the company's sources of competitive advantage. Therefore, the main factor of strategic management is to cultivate the unique ability and to use own strategic resources, namely the core competencies.


Basic types of corporate strategy


Depending on the different scopes and levels of study in the enterprise, corporate strategy can be divided into three different levels and types:

Company strategy: determine to operate in what areas and how to operate, it is the overall strategy.

Competitive strategy: determine how the various departments to carry out the business activities in order to maintain a lasting competitive advantage.

Business strategy: refer to the strategy in various functional units.

Each level can be divided into the offensive strategy, defensive strategy, penetration strategy, response strategy and retreat-type strategy. According to the corporate development speed, it also can be divided into growth-oriented strategy, stability strategy and retrenchment strategy, and can also be divided into focus strategy, differentiation strategy, cost leadership strategy and strategy of joint ventures according to the operating characteristics.


Chain Operation Theory


Definition and types of chain operation

Chain operation is a form of business organization and operation system. It is through the standardization of the corporate image, the specialization of business activities, management activities standardization as well as the modernization of management tools to make complex business activities in the division of functions to be relatively simplistic (Gilmour, 1998). Independent business activities are combined into the overall scale of operations, in order to achieve economies of scale. Chain operation is an inevitable trend of retail development and is an effective way of improving economic performance, which facilitates purchase of the customer chain management and can maximize to meet the needs of the community, maximize profits, in order to win economic benefits and social bumper.

Chain operation can be divided into three types: First, the direct chain (RC), that the corporation’s direct investment to open a store. Second, the franchise chain (FC), namely the transfer of the right to operate as the core chain management. Third, the voluntary chain (VC), that is, keeping the chain operation of the individual capital ownership.


Advantages of chain operation

Chain management is the pursuit of the overall scale of operation, through an extensive distribution, portfolio management, and decentralized sales to achieve economies of scale. The most significant advantage lies in that it effectively resolves the contradiction between the scale of operation and consumption dispersion. The one hand, a number of chains for the relative dispersion in the region are in-depth consumer hinterland, adapted to the dispersion, regional and multi-center and other characteristics of the consumers; the other hand, the unified management of the chain can combine the dispersed, small-scale commercial establishments to become a large-scale marketing system, for the formation of the centralized management pattern on the basis of the central premise of dispersion and dispersion.


Shopping Mall

Unluckily, the former economic discussions often concentrated on the value and supply chains in global operations, designing goods and services. Muhlebach and Alexander (2004) discussed strategy management in shopping mall and firstly introduce 4Rs in his book: shopping center management and leasing. The 4Rs are: getting it right, doing it right, opening it right and keeping it right.

A shopping mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version of the traditional marketplace (Eppli and Benjamin, 1994). Moore (1999) mentioned that the core concept of shopping mall is comprehensiveness and complementarities.  In the concept of the mall, the business and products meet basic human needs. It is similar to a small community; all aspects should be considered to meet each demand. The relationship between opponents should be complementary (Benjamin et al., 1992). If there is an opportunity for the Shenzhen Rainbow Shopping Mall to reposition its market, we can use Porter's Five Forces Model to analyze the business environment which the Forbidden City Plaza (Porter, 1980). By this analysis, we can find evidences that the Shenzhen Rainbow Shopping Mall should act as complement in that condition.



Methodology


Quantitative research was described as entailing the collection of numerical data and as exhibiting a view of the relationship between theory and research as deductive, a predilection for a natural science approach (Bryman and Bell, 2011). This project targets to include 200 questionnaires, the samples are simple random samples, with random sampling each unit of the population has an equal probability of inclusion in the sample. The questionnaire will designed to have qualifying questions at the start and easy questions at the start, complex questions in the middle, personal demographic question at end, and avoid having leading questions in the questionnaire. The questionnaire will concentrate on why consumers do not shop in the Shenzhen Rainbow Shopping Mall and what consumers look forward to have in a shopping center.

Bryman and Bell (2011) demonstrated that qualitative approach is the way to understand people’s perception and thinking. It can be used to get in-depth data and is appropriate to be used in an inductive research. Moreover, qualitative approach could enable researchers to capture behaviour. In this project, semi-structured interview will be chosen as the method to conduct research. The research will interview two shop owners in the Shenzhen Rainbow Shopping Mall, the concentration of interviews will focus on the condition of operation, and their relationships with managers of shopping centre.

Secondary data can be easily collected from financial reports and newspapers. During the first stage of research, the author can stay in Shenzhen to finish the questionnaires and investigation on the spot. However, the potential difficulties have been considered, which may include the response rate of the questionnaires.



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