伊利集团企业结构 文化与决策 英文版

A critical evaluation of the structure and culture of Yili Group Co.LTD, and the way in which its management makes strategic decisions

1.Introduction

Inner Mongolia Industrial Yili Group Co.LTD is one of the leading enterprises in China’s dairy industry, which consists of five business departments including liquid milk, cold drink, milk powder, yogurt and raw milk. It has a huge production link of 39 categories and over 600 segmenting products including ice creams, milk powder, milk tea powder, sterilized milk, yogurt and products. After more than ten years of development, nowadays Yili Group Co.LTD has taken the largest market share in China's dairy industry , its asset scale, production amount, sales income are all listed in the first place. (Wikipedia, 2012)

In this paper, I will make a critical evaluation of the structure and culture of Yili Group Co.LTD, and the way in which its management makes strategic decisions.I will make an overall assessment of external and internal factors of Yili’s management ,discuss the way in which its management makes strategic decisions, finally I will propose some recommendations to improve Yili Group Co.LTD’s strategic management .

2.Structure of Yili Group Co.LTD

Organizational structure is the highest organ about leadership of a corporation，it mainly effects the decision-making process, execution and supervision of corporation’s business.Organizational structure has two aims，one is to organize activities, and distribute them to sub-units，the other one is coordinate and control these activities in order to let them achieve the purpose of organization(John, 1972)There are six general structure forms of current companies and Yili Group’s organizational structure could be regarded as the Division system.(Mary Jo, 2006)

On May 8th, 1993, Hohhot Dairy Food Factory was restructured into Inner Mongolia Industrial Yili Co.LTD, thus Yili Group Co.LTD has stepped onto the fast lane of modern enterprise system’s sustainable and healthy development . The success of shareholding system reform helps Yili realize the seperation of ownership and operation, as well as the seperation of asset ownership right and the legal person property right, so as to make Yili Group apply the preliminary modern enterprise system. (Baidu baike, 2012)

Strict corporate management structure has become the core strategy of Yili Group Co.LTD. As a leading enterprise transformed its resource advantage into economic advantage, the whole organization obey the

principles of unity, respect, efficiency management and production management decision-making concepts, subordinate enterprises combine with their own practices, use unique mode of operation in modern enterprise system such as leasing, contract, parties, to create the Yili Group Co.LTD’s glory and miracles with proper cooperations .

Yili Group Co.LTD drew lessons from domestic and international advanced enterprises’ management ideas and methods, combine management with legal system, with the enterprise's reform and development, it has already formed the unique enterprise structure, including the normal production and life behavior standards, supervision and assessment system and rewards and punishment system, etc. From leaders to staff, everyone is equal in face with the system. Strict site management makes company's production and life in order. Yili Group Co.LTD also cultivate the staff to adapt to the cruel market competition of iron discipline and consciousness through the military training, No matter how high the position is, no matter what purposes are, if one breaks Yili Group Co.LTD’s rules, he or she have to accept the punishment. (G.Pan,2003)

3.Culture of Yili Group Co.LTD

Culture of an organization shows an interdependent set of values and ways of common thoughts , which tends to the implementation of those who are realizing stakeholders' goals in the organization(Kotter and Heskett,1992) . There are three perspectives on culture，integration，differentiation and fragmentation (J.Martin,1992) . Yili Group conducts these perspectives in an all-round way，making its organizational culture very strong，as Yili’s members have a strong attachment to its core culture of consistently making innovations，meanwhile they have rights to hold their personal opinions towards decision-making (Gordon and DiTomaso,1992) .

Yili Group Co.LTD advocates staff to out personal goals into enterprise’s overall goal, advocates the individual subordinates to the whole group, advocates the pursuit of the overall strength and the best benefit. Yili encourages the spirit never satisfied and constantly challenge limits, keep pursuing of "other irreplaceable". In Yili Group Co.LTD, the staff not only pursue material needs, but also realize personal value and the ideals .Yili Group Co.LTD ‘s enterprise culture is"staff as root , system as guarantee, team as prerequisite, equality and trust" .(Y.Wang 2008) It keeps improving in the fields of human resources, base construction, strategy construction, and technology innovation ,use global resources as Chinese market, and finally achieve the goal of being the top brand of China dairy industry, in order to make contributions to human health .Yili Group Co.LTD has done a lot of creative work in dairy industry such as dairy cattle raising mode and marketing ideas, it keeps exploration, and strive to do more scientific and

more reasonable, and strive to provide consumers with the best products and the best service. (J.Wiley,1990)

Yili Group Co.LTD’s management is famous for strict. This kind of strict reflects in every process including production management, financial management, labor and personnel management, marketing management, quality management, safety management. Each process has strict operation procedures, each operator should receive military training, business training ,ideological and political education before working. Through the training and retraining, study and restudy, one could gradually become a qualified staff. Not only does Yili Group Co.LTD use market competition mechanism into producing operations , but als apply market competition mechanism into human resources management.Fair competition has become the one big characteristic of Yili’s human resources. After a few years of training exercise, Yili Group Co.LTD has cultivated a group of professional management personnel and technical personnel. Considerate leadership is another characteristic of Yili Group Co.LTD. The leaders pay much attention to their employees, respect personality, give humanitarian support, maintain relationships. When employees have difficulties, leaders take the lead to help.. Liquid Milk Business Department has also established a sustentation fund to help staff who have special difficulties.

4.Decision making process in Yili Group

Decision-making is one of the most significant of all management activities ，it can be formed by a lot of external and internal factors（H. Simon 1957）From the perspective of internal factors， culture of an organization plays an important role .

In face of the high consumption, high pollution and resource restrict problems during the economic development, Yili Group uses its corporation culture to make decisions.It has kept seeking the overall change in economic growth pattern and being environmental-friendly.o As China's dairy industry leader, Yili Group not only achieves brilliant performance, while at the same time, it continues innovation and makes the utilization ratio of resources achieve the leading level within the dairy industry , it has already become a pioneer in environmental-friendly enterprises. Yili Group claimed that creating sustainable enterprise is the reality need for enterprise development ,as well as the important symbol to improve the enterprise management level and important method to improve the core competitiveness of the enterprise, it relies on scientific and technological progress to realize sustainable development. In order to create economical enterprise, the mode of Yili Group’s economic growth has been changed. Dairy market has been increasingly competitive today, so creating low cost, low consumption, high benefit management

mode, build a new enterprise economical growth mode and consumption saving mode are the new profit growth points for Yili’s enterprise development.

Yili Group takes various measures to reduce the production cost, optimize the economic indicators. For example: it established product recycling line , transformed industrial boilers to save energy and reduce consumption , optimize the allocation of resources to reduce the wastage of the products storage and transportation, reduced vehicle fuel consumption; cut down the waste of resources, improve the efficiency of fixed assets ,it also created energy and water conservation, strengthened the equipment energy management, built energy consumption statistics system, the specific energy consumption, water consumption quota; retrofitted heating, air conditioning, lighting system ,focus on the implementation of the high consumption process of technology improvement, etc.

Innovation is the constant theme of Yili’s corporation culture and decision-making management, the innovation in technology, products, services, management, culture and other aspects of is the precondition of Yili Group’s success. Innovation includes creating new resource model , which means use new ways and methods to make innovation and development, increase Yili Group’s all kinds of resources, especially resources with unique value. Business model innovation can change the rules of the market and create new business operation. The innovation of the product can help the development of new products and projects to lead the trend of the market.The innovation of the management will determine new management thinking, , change management system, procedures and methods. In Yili Group, staff’s innovation sense, organizational innovation mechanism, and the innovation ability of the system are of the trinity. Yili Group continues self-assessment, encourage creative thinking, and constantly improve working process and enhance the level of technology.

Yili Group’s corporation culture influence is not only limited to the enterprise’s internal technological and product management, but also effects the human resources management and decision. Yili Group called on the urgency of strengthen the staff resources saving and their sense of responsibility, establish healthy life style and scientific concept of consumption, guide employees to consciously save resources. Besides, Yili Group allocates every employee to actively promote environmental-protection knowledge and innovative sense e around people, so it has a positive impact on society in a wider scope.At the same time, with the aid of the leader effect of the enterprise, it stimulates a large number of following-up outstanding enterprises, which help the whole industry to change into type efficient mode of operation rapidly .

5.Conclusion

All in all, corporate culture and company structure have huge impact on enterprise’s development and decision-making process . Yili Group’s Internal culture and organizational structure affect each other deeply so that it needs managers’ modification and management. Yili Group’ culture and structure are updated and assist each other effectively,which emphasize constant innovation and environment-protection, in order to achieve sustainable and profitable in the long run.

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