Abstract: The healthy and sustainable development of the private economy is one of the hot topics of current social concern. The paper uses the success of the famous private enterprise Suning Group to explain that as long as the policies are correctly applied, opportunities are seized, and scientific management is carried out, private enterprises will have bright prospects and will also contribute to my country's economic development. The paper aims to illustrate that in the new era, if people dare to face challenges and break through old ideas, private enterprises will also make great achievements.

Keywords: Sustainable development of private enterprises

Introduction

The nationally famous Suning Appliance Chain Group was founded in 1990. After more than ten years of hard work and After hard work, Suning has now developed into a large-scale retail chain enterprise group with annual sales of more than 8 billion yuan, tax payment of more than 300 million yuan, more than 10,000 employees, and chain companies in 24 provinces, cities and regions across the country. It has successively won the honors of one of the top ten most influential enterprises in China, the top ten private enterprises in the country, the top ten chain enterprises in the country, the famous brand enterprise of Chinese commercial enterprises, and the famous service trademark of Jiangsu Province.

What is even more gratifying is that since 1995, Suning has taken the lead in trying the chain operation model in the field of household appliances distribution in China. Hundreds of chain stores have been established in Jiangsu Province and in Beijing, Shanghai, Guangzhou, Chongqing, Tianjin, Chengdu, Hefei, Hangzhou, Xi'an, Shenzhen and other places in the form of direct operation and franchise. Since 2000, Suning has established a second entrepreneurial stage with the strategy of upgrading comprehensive electrical appliances and accelerating chain expansion. The 18,000-square-meter professional self-operated flagship store opened on Shanxi Road in Nanjing in 2003 is the first single electrical appliance store in Asia. This means that Suning Appliance has taken off for the third time from specializing in air conditioners to comprehensive home appliance operations, and then to the expansion of information appliances. In terms of business categories, Suning is vigorously cultivating information appliances while making traditional home appliances bigger and stronger; in terms of chain network construction, Suning insists on exchanging time for space and quantity determines quality, and quickly builds Suning's chain network across the country. In this way, as consumers, we have also witnessed the growth process of Suning from scratch, from small to large. Suning Group has grown from a "small individual" to today's glory. It has successfully demonstrated the sustainable development of my country's private economy.

1. The opening of policies and the improvement of laws are the foundation for the formation of Suning

The birth of Suning is no accident. It shows the gradual improvement of my country's economic development from one aspect. Since the reform and opening up in 1978, two major changes have taken place in our country's economy: first, the socialist market economy replaced the planned economy; second, public ownership was the mainstay and the simultaneous development of multiple economic sectors replaced the single public ownership economy; are inseparable. The gradual development of private enterprises from scratch is an important symbol of China's socialist market economy and has become an important part of the socialist market economy. The non-public economy has promoted the development of our country's national economy and has had a long-term impact on our country's politics, society, and humanities. According to data, the presidents of the chambers of commerce and industry in Zhejiang, Guizhou, Chongqing and other provinces and cities are held by private business owners. At the just-concluded 16th National Congress of the Communist Party of China, there were at least 7 representatives of private enterprise owners and party members. The report of the 16th National Congress of the Communist Party of China put forward our further emphasis on the unswerving development of the private ownership economy, and proposed that the public ownership economy and the non-public ownership economy are the same development. In the construction of socialist modernization, we should not oppose the two. stand up. Based on this, it is not difficult to see that private enterprises are developing steadily and sustainably in our country. At the same time, paying attention to the future development of private enterprises should become a hot spot and focus of our country’s economic life. The development path of private enterprises in our country can be described as twists and turns, which reflects the unique characteristics of our country. historical, cultural and political background. In the early 1950s, the individual and private economy occupied a very important position in my country's urban and rural production and circulation fields. In the early days of the founding of the People's Republic of China, the industrial output value of the private economy accounted for more than 75% of the country's total industrial output value.

At the end of 1993, the 11th Session of the Standing Committee of the Ninth National People's Congress passed the "Sole Proprietorship Law of the People's Republic of China" based on the second review draft.

With Comrade Xiaoping's southern tour in 1992, the private economy developed by leaps and bounds at this stage, especially from 1992 to 1995. The annual growth rate of the private economy remained above 100, or even exceeded 120. After 1995 , the country has intensified macro-control efforts, and the momentum of private economic growth has declined, but it still remains above 20. The revised constitution in 1998 added that “in the primary stage of socialism, the country adheres to the basic economic system in which public ownership is the mainstay and the multiple ownership economies develop simultaneously, and the country adheres to the distribution system in which distribution according to work is the mainstay and multiple distribution methods coexist. ” and other content, which has played a boosting role in the development of the private economy. An obvious feature of this stage is that the number of individual industrial and commercial households has decreased, but the number of private enterprises has increased significantly. Suning Group was founded in 1990. The entrepreneurs used their sharp vision and keen market sense to find an entry point from the home appliance industry, challenge state-owned enterprises, operate flexibly, and gradually gain a firm foothold in the market.

2. Standardized organizational structure is the source of Suning’s rapid growth

The establishment principles of Suning Appliance’s organizational system are: professional division of labor, standardized operations, modular structure, and hierarchical management . Highlight the construction of structure, responsibilities and processes in internal management. The company's organizational structure has been continuously improved along with its business development, and now it has formed a relatively mature nine-function, three-level management system. According to the characteristics of chain operation and management, Suning Appliance’s internal organizational system is divided into nine professional functional areas: brand marketing, market planning, chain management, logistics and distribution, after-sales service, administrative logistics, human resources, financial management, and information systems. The decision-making level of the group headquarters There are three management levels - regional management center operation level - terminal operation level, and the unified and standardization of job settings and functions in the national chain network. All Suning subsidiaries operate under the same organizational system. Suning Appliance has established a complete system of operating procedures and management standards for each position, and compiled the "Operation and Management Manual" as the basic code of conduct for the operation of the entire chain system.

At the same time, Suning Appliance adopts a business model of service orientation and full-service staff. Service positioning includes three aspects: service to suppliers, service to distributors and service to consumers. The three are interdependent and mutually reinforcing. Serving distributors is to develop chain networks, expand scale, and better serve suppliers; serving suppliers can obtain stable products, prices, promotions, and after-sales resources, and better serve distributors and consumers; serving suppliers For consumers, establish commercial brands, drive and cultivate supplier product brands. The three-in-one service target of suppliers, distributors, and consumers has been determined. Suning Appliance implements full pre-sales, sales, and after-sales services in its internal operations, and provides full services to decision-makers, managers, and operators. In its business operations, Suning Appliance focuses on mutually beneficial manufacturer cooperation and equal and respectful manufacturer relationships. Under the premise of taking interests as the link, we focus on satisfying the long-term interests of suppliers, cultivating brands for suppliers, providing production start-up funds, and jointly expanding and maintaining the market. Combine the power of distributors to form unified purchasing and distribution, integrate scattered channel power, and provide suppliers with large-scale purchase orders. Suning's business style advocates replacing price war with value war. Reflect service innovation from brand resources, service development and price combination. Reflect personalized and differentiated value competition through innovative business methods. Through category development, we open up new business categories, new business brands and new products, giving consumers more choices. Through scientific guidance of consumption, we understand the real needs of customers, so that customers can buy satisfactory products. Through full supervision of distribution and after-sales services, we can meet customers' personalized needs and obtain value-for-money services. Such a relatively standardized organizational structure has facilitated Suning's transition from a single electrical appliance company to a comprehensive group company.

3. People-oriented management strategy is the core for Suning to become bigger and stronger

In recent years, although private enterprises have developed rapidly and their economic strength has gradually increased, overall You see, the vast majority of them are small enterprises. At the same time, although the contribution rate of private enterprises to the national economy and social development is increasing year by year, their proportion in the economic and social structure of the entire country is not very large. Family businesses, which combine ownership and management rights, are a distinctive feature of my country's private enterprises in their initial stages. The property rights structure is single and the distribution of equity is concentrated. The main investors hold the majority of the shares. The ownership and management rights of most enterprises are closely combined, and the operating decision-making power is highly concentrated and unified in the hands of the main investors. There is a great deal of overlap in the personnel of shareholders' meetings, board of directors and managers' office meetings. The party's grassroots organizations, trade unions, workers' congresses, etc. generally do not participate in corporate decision-making. As of the end of June 2002, there were only 139 listed companies in the domestic A-share market whose largest shareholders were private companies, accounting for only 11.84% of the total number of domestic A-share listed companies in the same period.

Despite this, Suning Group has achieved success by relying on the scientific and humane management of "people-oriented" by drawing on the advanced management experience of foreign companies and the inspiration of successful domestic private companies.

(1) People-oriented and respecting the subjective consciousness of employees

Respecting the subjective consciousness of employees means fully affirming the main role of employees in the production and operation activities of the enterprise. Private enterprises must strive to create conditions so that employees can realize that the results of their work are meaningful to themselves and worth fighting for; at the same time, they can realize that their efforts have certain significance to society or the enterprise and should work for them. Since its establishment, Suning has adhered to the principle of "sincerity and sincerity" as a human being and the foundation of doing things, cooperating with people all over the world and achieving great things in the world.

(2) People-oriented to enhance cohesion

With the development of Suning chain business, batch after batch of social talents have joined Suning across the country and become members of the Suning family. Enterprise socialization and talent localization have become the development reality of Suning today. Suning has been able to maintain a steady expansion trend as the company's development scale has doubled. Ultimately, it is because Suning has a strong workforce and leadership team. Suning employees' love for the company does not come from the company's indoctrination, nor from the constraints of the system, but from the role models set by batches of senior Suning employees. Suning's old employees have followed the development of the company for many years, and have gained personal interests and career development as the company has grown. The social status and family life quality of Suning employees have improved with the development of the company. Achievement and development, respect and honor, interests and security are the bonds that maintain Suning's employees' love for the company. It is this love that maintains Suning's growth from small to large and from big to strong.

(3) People-oriented and meritocracy

Suning Group believes that only those who can create value for the enterprise are talents, and the criterion for judging talents is the size of their contribution to the enterprise. Even if you have an education, qualification or diploma, examine its true value. Suning Appliance’s selection of personnel emphasizes moderate ability. The introduction and allocation of all personnel must meet job requirements and be reasonably matched. At the same time, division of labor and cooperation are advocated, and individualism separated from the collective is not encouraged. Dedication and teamwork spirit are the basic requirements for Suning employees. College students are the key channel for Suning Appliance to introduce talents. Suning Appliance has established long-term cooperative relationships with dozens of key universities across the country for talent export, and introduces a large number of outstanding fresh graduates from universities every year. At the beginning of 2003, Suning Appliance focused on the needs of the next 2-3 years and launched the "1200 Project" for fresh college students. It planned to recruit 1,200 fresh undergraduates and above from colleges and universities across the country. After 1-2 years of careful training and training, Suning Appliance finally Enriched into various middle management positions in the company.

In order to better cultivate talents, Suning Appliance has set up a training management department at its headquarters and a team of teachers composed of experienced managers and professional and skilled technicians. Based on the principle of "professionalization and personalization", Suning Appliance has compiled A set of training materials including "Operation Management", "Marketing Management", "Chain Preparation", "After-sales Service", and "Logistics and Distribution" have been developed to provide pre-job adaptability training and on-the-job improvement training for new employees and current employees. Each management department has also made training an important part of the department's work, formulated their own annual training plans, designated dedicated personnel to be responsible for the professional training of their departments, and included personnel training in monthly work evaluations and year-end department evaluations. Output is one of the important evaluation indicators.

(4) People-oriented and building a stage for performance

Suning, which has been in business for more than 10 years, is actually in the youth period of corporate development. It may not be mature enough to fully form Suning's corporate culture. However, in the face of the yearning of more than 5,000 Suning employees across the country, and in the face of public opinion and the attention of the industry public, Suning proposed some of the essence and core connotations of Suning's corporate culture, which were made clear to employees and made public to the society. The group unifies the common values ??of the enterprise and all employees. Values ??are the basis for interest orientation and interest distribution. When Suning started its business, the interests of the company were also the personal interests of the entrepreneurs. As the scale of Suning gradually expanded, the relationship between the realization of corporate interests and the satisfaction of employee interests and social benefits became increasingly close. Therefore, today's Suning has already integrated the interests of the company with the personal interests of its employees. Suning emphasizes personal interests, but its understanding of personal interests and personal values ??and the means of realizing them are based on corporate principles. Suning wants to survive, and Suning's survival cannot be separated from coordination with society and integration with the environment. Therefore, relative to corporate interests, national interests and social interests are above all else. If Suning wants to develop, it needs long-term sustainable development. Therefore, compared to personal interests, the interests of the company outweigh everything else. Suning's development is inseparable from the efforts of its employees. The hard work of Suning employees is the real force for realizing the interests of the company. Therefore, Suning employees are the company's most valuable assets that create wealth. It is our mission to run the company to continuously improve the returns on the interests of Suning employees. Purpose. Every Suning employee, regardless of their position or ability, exerts their talents and talents under the Suning brand and in the Suning team. Every Suning employee must prioritize the fundamental interests of the company as a matter of course.

(5) People-oriented and scientific motivation mechanism

Suning Appliance has established a systematic evaluation and assessment system. Each position adopts a combination of monthly assessment and annual assessment to comprehensively evaluate employees' monthly work from three aspects: job responsibilities, plans, and mental outlook. Quantitative assessment and personalized assessment are a major feature of Suning Appliance's assessment system. All assessment systems and evaluation indicators adopt scoring methods. Since the chain system has many and complicated job positions, Suning Appliance also focuses on highlighting personalized assessments and setting up different assessment plans for different positions, including brand marketing positions, functional department positions, chain store salespersons, distribution centers, after-sales service centers, customer service centers, A serialized system for engineering business positions.

Conclusion

The convening of the 16th National Congress of the Communist Party of China has opened a new chapter in China's history, which has injected a catalyst into China's economic development. The 16th National Congress of the Communist Party of China emphasized the need to protect private property, which is to encourage everyone to start a business, do something, and create wealth. Because there is no private economy without private property, and without the development of the private economy, there is no development of the market economy. It is impossible to establish a market economy in a public-owned economy. To protect private property, we must recognize and protect legitimate labor income, and at the same time, we must also protect legitimate non-labor income. The document of the 16th National Congress of the Communist Party of China emphasizes that labor, capital, technology, and management should participate in distribution according to their contributions. This is obviously of extraordinary significance and is very important for the development of the private economy.

There are also areas where private capital can enter the market, and market access has been broadened, because the country still has many areas that do not allow private entry. The 16th National Congress of the Communist Party of China proposed that in addition to some industries related to the lifeline of the national economy, they must be developed. It is also proposed that in terms of investment and financing, taxation, land and foreign trade, equal treatment should be implemented like state-owned enterprises. This means that the private economy will gradually expand in the future, and all industries that require monopoly in some countries will be developed. This undoubtedly provides more and better opportunities for the development of private enterprises.

In short, after the 16th National Congress of the Communist Party of China, the private economy will have great development. After the development of the private economy, we will have a good guarantee for building an all-round well-off society, because only in this way can all aspects of the country be integrated. mobilize the power.

At the same time, we are also pleased to find that the government and social systems are actively providing private enterprises with an effective supportive atmosphere and room for healthy growth:

First of all, the credit system of the entire society has been further improved. For the private economy to develop, it must be supported by capital. Part of the capital can come from the entrepreneurs' own accumulation, but most of it still relies on the help of the capital market. The fundamental guarantee of capital flow is a good credit relationship, which is the most important condition for the future development of my country's private economy. We have seen that the government is striving to increase transparency in the financial industry, strengthen government supervision of the financial industry, and establish the credit records of individuals and businesses. At the same time, we must develop the capital market, further open the stock market to the private economy, develop credit guarantees, develop the leasing industry, etc.

Again, various intermediaries emerged, including accounting firms, law firms, audit firms, consulting firms, wholesale distribution centers, retail dealerships, mail order networks, franchise chains, insurance companies, and guarantee companies. , leasing companies, patent offices, credit record service companies, etc. Such institutions serve enterprises and can improve their operating efficiency, improve product quality, and reduce costs.

At the same time, the government has also strengthened services to private enterprises and given more attention and help, which will definitely promote the vigorous development of private enterprises.

According to statistics from the State Administration for Industry and Commerce and the National Bureau of Statistics, in the 10 years from 1992 to 2001, the number of registered private enterprises nationwide increased from 139,000 to 2.0285 million, an increase of 13.53 times. ; while the number of state-owned enterprises and collective enterprises decreased from 1.547 million and 4.159 million to 1.318 million and 2.209 million, a decrease of 14.8 and 46.9 respectively; the number of foreign-invested enterprises increased from 84,000 to 202,000, an increase of 1.4 times . During the same period, the total registered capital of private enterprises increased from 22.12 billion yuan to 1,821.22 billion yuan, an increase of 82.3 times (without deducting price factors, the same below); while the total registered capital of state-owned enterprises and collective enterprises increased from 1,794.80 billion yuan to 824.20 billion yuan. The total registered capital of foreign-invested enterprises increased from US$115.987 billion to US$505.78 billion, an increase of 3.36 times. Among all types of enterprises, private enterprises are developing the fastest. These statistical data fully illustrate the development trend of my country's private economy. On the other hand, from the success of Suning, we also get this inspiration: if private enterprises want to become bigger and stronger and get out of the siege of "handmade workshops" or "family businesses", the key is that the top decision-makers can be good at learning, far-sighted, and broad-minded. Recruit talents and always be ahead of peers.

It is foreseeable that in the next few years, the business scale and economic strength of private enterprises will be further expanded and enhanced, the comprehensive quality of private business owners will be further improved, and our country's private enterprises will learn from international Advanced management concepts, experience, and steady development are a good example of Suning Group.