Steel industry: A typical representative of large organizations

&http://www.aliyun.com/zixun/aggregation/37954.html ">nbsp; Iron and steel industry as a relationship between the livelihood of the industry, its important position in China is self-evident. 2010 China's iron and steel enterprises ranking-the domestic steel companies ranked among the 110 steel enterprises, the proportion of state-owned enterprises accounted for nearly one-third, which does not include state-owned enterprises to buy shares of other joint-stock steel companies, if this part is added, it may be higher percentage. In the steel industry, the state-owned enterprises dominate the world has its historical reasons, the steel industry is a high concentration, long construction cycle, scale effect agglomeration of the industry, but the extensive mode of production and state-led management thinking strategy let this industry produced a series of problems, The source of overcapacity is the ultimate result of this kind of thinking.

In the the early 1990s, our country finally established the market economy as the target mode of China's economic system reform, China has since become the focus of the world attention, which for the previously closed market, the establishment of market economic system will undoubtedly put our market into the eyes of the world.

But then the overcapacity eventually became a buzzword, becoming a deadly problem that plagued China's industry in the new century. The so-called overcapacity, refers to the actual output quantity is smaller than the production capacity of the formation of overcapacity. The traditional economic theory holds that the price function of the market will be like an invisible hand (invisible hand), which can effectively guide the supply of the product, so that the consumers who are full of profit pursue the maximum satisfaction, the producer can pursue the maximum profit, and the overcapacity is nonexistent in this situation. However, the experience of Western countries ' economic development tells us that under the precondition of open market, there are some defects in the assumption of perfect competition market and price automatic regulation mechanism, and the market skills may fail completely. Therefore, the long-term equilibrium between producer and consumer can only be achieved in the short term, but it is very difficult to maintain the long-run equilibrium.

In addition, the transition from planned economy to market economy, a closed space more open, the original planned economic system under the accumulation of the drawbacks, no doubt in the new economic system will be reflected, which is a historical cause of overcapacity. A highly centralized planned economic system and a single mode of economic regulation have made the economy of the whole society dysfunctional. Before the reform and opening-up, China has given priority to the development of heavy industry, and for the market economy, productivity is in the brewing stage, which is the prelude of productive forces. The planned economy requires proportional and coordinated development without the private ownership basis of the polarization of the rich and poor. The leap in labor productivity will greatly save Labor and save labor time. In theory, the planned economy's capacity is not enough to lead to overcapacity and, more likely, to the severity of overcapacity. As long as the strict plan, there will be no overcapacity phenomenon. With a highly centralized planned economic system, the government almost controls all economic and social resources. As a result of the original basis of the entity, but the economic entry into the market mechanism after the unprecedented rush to rise, the Chinese people's labor enthusiasm has been unprecedented release.

European and American developed countries statistics show that capacity utilization is less than 79%, then overcapacity phenomenon will likely appear. Capacity utilization is normal between 79% and 83%, and more than 95% is considered insufficient capacity. 2003-2007, the average capacity utilization ratio of China's steel industry was 83.2%. The lowest 2008-year, capacity utilization of less than 75.9%, 2009, rebounded 5.6% to 81.43%. (Avoid the investment of overcapacity companies, securities times, Zhou Yanjie, April 15, 2013) However, with the heavy accumulation of capacity in various industries, according to this accumulation situation, many industries have accounted for more than half of the world's production capacity accumulation. "China's overcapacity industry has increased from 11 in 2005 to 17, and more surplus industries will emerge," said Wang Jian, Secretary-General of China's macro-economic society, in the Outlook magazine. Xinhua Beijing, December 27, 2009. ）

The factors of national ideological orientation and policy, the impact of a country's industry is crucial, from the beginning of the founding, China's steel has gone through 60 years of journey, the heavy footsteps of the heart is always hurt the liver lament, faltering figure has never indicated that China is a steel power, not even a big steel, Eating to eat to survive is not a happy thing, the food is more and what is the use? From the perspective of national policy, the history of China's iron and steel development, hoping to find out the right way to rely on policy development, perhaps in the macro perspective, we may be more accurate to grasp the industry than the country, so also in the development of their own road, and strive to avoid a few detours. From the policy point of view of China's steel industry, the typical large organization, hoping to get some ideas from the future development, perhaps in the new era, the ultimate trend of large organizations have a lot of benefits.

2012, the Chinese industry suffered a general winter, in the deteriorating market environment, the steel industry suffered an unprecedented loss of the entire industry, steel prices upside down, steel trade group shrinkage, high inventory, supply and demand contradictions, many problems collective outbreak. China's steel industry in the face of severe winter, it is necessary to reflect on the development of China's steel industry from a variety of perspectives, and gradually explore the Chinese steel industry to go to the whole industry is aihongbianye, the situation of devastation, this is not only the industry in which every person must consider the issue, but also every entrepreneur Scholars should think and study the object. Iron and steel industry can not be separated from the policy support, guidance, of course, the background of the Times and the market environment at that time, about the impact of the market on the steel industry, has talked enough, then from a policy perspective of China's iron and steel industry, a deep perspective of the impact of the policy Maybe it's a meaningful thing for every one of us in the steel trade today.