The vitality of the organization lies in following the trend and being tough against the trend

  Based on the organizational vitality model built on the three dimensions of strategy, organization, and talent, we have selected the top 500 listed companies with organizational vitality from more than 1,000 listed companies with a market value of more than 20 billion yuan, and more than 100 industry-segmented listed companies. Outstanding companies are gathered on this list. Among them are star companies in the tuyere industry, as well as evergreen companies that cross the economic cycle and industry cycle.
-01-Companies with a market capitalization of 100 billion yuan are at the forefront of the list, with strong impact from cutting-edge technology

  In terms of market value distribution, the top companies are basically industry-leading companies with a market value of more than 100 billion yuan. These companies have relatively high revenues and huge asset scales, and are able to deal with uncertainties more steadily and travel through the economic cycle. Although the size of a company is not the only factor that determines the vitality of an organization, a higher market value and asset size can allow the company to have more sufficient funds and resources to deal with the impact of external crises when the macro economy shrinks.
  From the perspective of growth stage, most of the high-ranking companies have entered a relatively mature stage. They have long occupied a leading position in their main business areas, maintained a high level of operational efficiency, and can maintain stable performance growth. Companies with excellent organizational skills can seize industry opportunities, continue to explore new growth points, continuously adjust strategies and innovate organizations, and continue to improve their operational standards.
  However, there are also many emerging giants in high-ranking companies that have been established for less than 10 years. The youngest among the top 20 is the new e-commerce giant Pinduoduo, which was established in 2015 and ranks 12th. Other younger companies in the top 100 include Didi (33rd) established in 2012, Shell Search (43rd) established in 2018, Weilai Automobile (44th) established in 2014, and JD Health established in 2018 (No. 60), Xiaopeng Motors established in 2014 (No. 81), Tencent Music established in 2016 (No. 83), Ali Health established in 2014 (No. 84), Ideal Car established in 2015 (No. 90), Lufax was established in 2011 (92nd). Some of these companies are leaders in the new economy with strong Internet attributes, and have played an important role in the rapid growth of my country’s digital economy in recent years; some have seized strategic opportunities in the industrial transformation, such as the three major players in the new energy automobile industry. The “new force in car-making” has broken and subverted the traditional industry.
  In terms of industry distribution, companies with higher rankings are mainly distributed in industries that have developed relatively stable in my country’s economic system over the years, such as the Internet, finance, and consumption (Figure 1). Although the leading companies in emerging industries that have developed rapidly in recent years are also ranked higher, they are slightly lower than their market value rankings. For example, new energy leading companies Ningde Times (22nd), Weilai (43rd), BYD (No. 54) etc. Although the capital market has given these leading companies in emerging industries very high expectations, the long-term growth of a company cannot be maintained only by industry outlets. A mature organizational system and a reasonable talent structure are the guarantee for the long-term stable development of the organization. In the early stages, emerging companies often achieved rapid development due to market dividends, which concealed the lack of organizational power. Therefore, whether these emerging companies can continue to grow and grow remains to be tested.
  According to the three-level industry classification, the industry with the highest average ranking is Internet e-commerce represented by Alibaba, JD and Meituan, followed by oil and gas energy represented by PetroChina and Sinopec, and third is China Ping An and China Life. Representative of the insurance industry.
  According to the industry’s secondary classification, this organization’s Vitality 500 list includes listed companies in 23 major industries, of which the capital goods industry (58 companies) is the most short-listed company, which is used to manufacture products and services in the production process. Physical assets, including various fixed assets such as buildings, machinery, equipment, vehicles and tools, can be regarded as the foundation of the real economy. It is followed by diversified finance, medicine, IT software, hardware equipment, chemical materials, banking and other industries (Figure 2).
  We further classified the sub-industries based on the main business and products of the companies on the list. The top 500 companies are distributed in 105 sub-industries, basically covering all sectors of the national economy, and are basically leading companies in all industries. All of them are shortlisted, which to a certain extent also reflects the characteristics of my country’s industrial structure and the trend of industrial structure upgrading driven by technological innovation in the future (Figure 3).

  From the perspective of industrial chain distribution, large financial sectors (including securities firms, banks, insurance, Internet finance, and diversified finance) account for the highest proportion of the top 500, with a total of 85 companies shortlisted, which can be said to be the industry sector with the strongest organizational vitality. Among them, there are more than 30 companies in the brokerage industry and the banking industry, which to a certain extent reflects the huge scale of my country’s financial industry and the rapid development of the capital market over the years. The next most prominent is the big health field (including medicine, biomedicine, medical equipment, medical services, pharmaceutical sales, etc.), with 63 companies shortlisted. In the field of information technology, a total of 21 Internet companies were shortlisted, 16 software companies were shortlisted, 7 communications companies were shortlisted, and 5 information security companies were shortlisted. In addition, it is worth noting that the country has strongly supported the development of integrated circuits and new energy industries in recent years, as well as the domestic automobile industry that has benefited from new energy vehicles. There are many companies on the list, but no company has entered the top 20. While the leading companies in China are taking advantage of the industry’s growth, they still have a gap with the top companies in the organization’s vitality, and there is still room for further improvement.
-02 -Industry giants are pursuing the second curve to enhance organizational vitality

  From the perspective of the industry distribution of the shortlisted companies, in traditional manufacturing, industry and agriculture, it is difficult to achieve rapid growth in the industry scale. Only a few industry leaders are shortlisted, but there are many high-quality companies that have successfully innovated and seized opportunities for industrial upgrading. , Achieved growth beyond the industry average and stepped out of the second curve. It has even become a cross-category giant, such as Midea in the home appliance industry and Xiaomi in the consumer electronics industry. It can be seen that companies in traditional industries can keep up with the times by embracing emerging technologies and advanced business models to improve organizational vitality, and there is still huge room for upgrade and progress.
  Take Xiaomi as an example. Over the years, it has steadily supported and expanded its diversified ecological chain based on smartphones and artificial intelligence Internet of Things (AIoT). Based on the success of pursuing the ultimate cost-effectiveness, it has pursued high-end brand and higher-quality growth. . Today, Xiaomi’s core organizational capability is to empower companies in its smart hardware ecological chain from product, operation to sales, and continue to expand boundaries to achieve synergies.
  In terms of organizational capabilities, Xiaomi’s Internet business department uses traffic conversion and data assets to help Xiaomi screen out outstanding ecological chain companies that can be incubated, and the investment team of Xiaomi Group with an engineer background can also screen out core technologies or their business models. Verified companies, and settled in the ecological chain companies of OEM Xiaomi products to assist in product selection and quality control. Xiaomi has recruited these startup companies in line with Xiaomi’s strategy and vision into Xiaomi’s ecosystem, giving them excellent resources from the upstream supply chain to downstream sales channels on the Xiaomi platform, helping these companies to grow rapidly, and at the same time feeding back the Xiaomi Group, forming a virtuous circle. After the high-profile announcement to enter the field of smart electric vehicles in 2021, Xiaomi’s ecological chain has extended into a new industrial chain, and its organizational vitality will face a new test.

Based on the organizational vitality model constructed from the three dimensions of strategy, organization, and talents, the article gathers emerging star companies and evergreen companies from more than 100 sub-industries, and provides a list of outstanding companies at a glance. It can be seen that digital transformation is reshaping traditional industries and creating new industries. How incumbent companies circumvent organizational inertia, achieve a breakthrough in the second growth curve, and build an organizational vitality that advances with the times, has become a practical issue that needs to be resolved urgently. Facing a complex and turbulent external environment, companies need to integrate, construct, and reconfigure internal and external resources to build the ability to adapt to the dynamic and complex changing environment. Only then can they have the opportunity to turn “danger” into “opportunity” and realize the leap from industrial system to intelligent system. ——Jiao Hao, Distinguished Professor of Beijing Normal University, School of Economics and Business Administration

  There are also companies that have deepened the industry chain, consolidated their leading advantages, and maintained stable development. For example, Moutai and Wuliangye of liquor have been adhering to high-end positioning, building brand value, and optimizing marketing channels for many years; Arowana and Haitian in the grain and oil industry have more modern companies in the industry. Governance structure, flat organizational structure, and diversified channel network; Nongfu Spring in the water drinking industry relies on the advantages of water sources, has strong brand operation capabilities and channel operation capabilities, and has developed into a platform-based beverage company with diversified products; technology The manufacturing industry’s Foxconn Industrial Internet (Industrial Fulian) and Luxshare Precision have seized the opportunity to upgrade the manufacturing industry.
  It’s also worth noting that many of the top-ranked companies are large central enterprises or state-owned enterprises that occupy an important position in the national economy, such as the four state-owned banks, the “two barrels of oil” PetroChina and Sinopec, the insurance industry’s Ping An of China, and China Life Insurance. , China Mobile in the communications industry, public utilities, energy and chemical engineering, transportation, and construction engineering also have many state-owned and state-owned enterprises on the list, which to a certain extent reflects the dominant position of the state-owned economy in my country’s economic system.
-03-Monopoly industry, not organized moat

  A monopolistic business model does not mean that the life of the organization is safe. Even in a monopoly industry (such as energy, telecommunications, infrastructure), the organizational capabilities of central enterprises and state-owned enterprises are very different. For example, among the three major telecom operators, China Mobile has established its position as the largest mobile communication service provider in the Mainland after years of development. Its enterprise scale and revenue level are much higher than those of China Telecom and China Unicom in all aspects. It can be seen from the organizational vitality indicators that China Mobile’s indicators of organizational vitality such as financial health and operational efficiency are much higher than those of China Unicom and China Telecom. With the advent of the 5G era and the widespread application of emerging technologies such as cloud services and big data, the three operators have invested heavily in new technologies to develop new competitive advantages. The business models of telecom operators will all face the future digital economy. With the transformation, the competition will enter a new stage of higher quality. In addition, companies in monopolistic industries, or companies with monopolistic business models, often shoulder more and more significant social responsibilities, and should pursue the longevity of the enterprise, and should play an exemplary role in the construction of organizational vitality.
  There are also some companies engaged in specific businesses on the list, because they have an important position in the economic system, or their own business scale is large, and they are firmly ranked as the industry leader. Therefore, there may only be one company in the industry chain on the list, but there is still a good ranking. , Such as the number one brand of domestic water and drink Nongfu Spring (No. 53), steel producer Baosteel Co., Ltd. (No. 65), internal combustion engine manufacturer Weichai Power (No. 75), private chain eye hospital Aier Ophthalmology (No. 76), shipping service supply COSCO Shipping Holdings (No. 79), Zhong Gong Education (No. 99), a civil service examination and training institution, Zhongda (No. 122), a leading enterprise in the coal industry, Shaanxi Coal Industry (No. 134), and clothing foundry Leading Shenzhou International (No. 144) and so on.
-04-Crisis and Opportunity: The drastic changes in the industry are the biggest test of the vitality of the organization

  For industries that have been heavily impacted by policies, such as education and real estate, although there are not many companies that are listed in the top 500, there are also companies that rank high in organizational vitality, such as Good Future ranked 80th and Vanke ranked 85th. , Which shows that these companies also have strong resilience during the downturn of the industry. Shell, an Internet real estate brokerage company born out of Lianjia, went public in 2020 and ranked in the top 50 in this selection. It can be regarded as a successful model of traditional real estate brokerage companies’ digital transformation. But in 2021, Shell’s founder and chairman Zuo Hui passed away due to cancer. In the second half of the real estate downturn, Shell’s market value has shrunk sharply, revenue is also facing downward pressure, and it has to be laid off nationwide, and organizational resilience is facing a test.
  With the state’s top management’s setting of “housing to live without speculation”, my country’s real estate market has cooled rapidly in recent years. Only 5 real estate companies were shortlisted in this year’s list, and only Vanke, who was the first to call out “Live”, was shortlisted In the top 100, 9 companies in the construction engineering industry were shortlisted, indicating that the industry is relatively capable of resisting the impact of the cycle downward, because companies in this industry can do both real estate and infrastructure. The year-on-year growth rate of my country’s fixed asset investment in the past 10 years has basically been in a steady downward trend, but it has maintained growth. In the first half of 2020, the year-on-year growth of fixed asset investment was affected by the epidemic. However, fixed investment has gradually recovered from the second half of 2020, and the growth has returned to the positive range. Since 2021, the growth has gradually dropped to about 10% (Figure 4). Major companies in the construction engineering industry such as China State Construction (15th), China Railway (28th), China Communications Construction (31st), and Shanghai Construction Engineering (104th) are still able to maintain steady growth and are also ranked in the list. Relatively high position.
  For the high-end manufacturing industries that the country has high hopes for in the industrial transformation and upgrading strategy, such as automobiles, chips, new energy, consumer electronics, 5G applications, advanced equipment, etc., many companies have demonstrated excellent organizational vitality and have entered the top 500 Famous list, such as many domestic auto companies that have risen with the help of new energy Dongfeng, SAIC (21st), Weilai (43rd), BYD (54th), Great Wall Motors (55th), and energy storage batteries in the new energy industry Manufacturer CATL (No. 22), Photovoltaic product manufacturer Longji (No. 62), Weir Group (No. 93) in the semiconductor industry chain, BOE (No. 78), a leading display company, etc., but in the high-end manufacturing industry Compared with finance, the Internet, and healthcare, the number and quality of companies that stand out in organizational vitality need to be improved.

  Since 2020, many industries have been affected by the global new crown pneumonia epidemic, especially tourism, civil aviation, catering, and airport operations. Companies with more international business are particularly hit, such as international civil aviation companies such as Cathay Pacific and Air China, international airports such as Shanghai Airport and Baiyun Airport, and low-cost airline companies such as Spring Airlines that focus on cost control. They can resist the epidemic relatively well. The impact. There are also some other outstanding companies in these industries that can quickly adjust and recover from the impact of the epidemic, such as online travel company Ctrip (No. 204), hotel chain Huazhu (No. 293), and chain restaurant group Yum China (No. 156), etc. These companies are more successful in digital transformation, can seize opportunities in the new normal in a timely manner, and have strong innovation capabilities to drive new growth.
  For comprehensive enterprises under the epidemic, diversification is a “double-edged sword”, which may not only help enterprises resist risks, but may also drag the entire enterprise into a difficult situation due to the failure of some businesses. Cross-industry development means increased risk and uncertainty, and more organizational capabilities are needed. It can be seen from the list that there are not only Ping An, CITIC, and Fosun such as Ping An, CITIC, and Fosun that have achieved eclectic and successful diversified business models for many years, as well as Suning and Evergrande’s unclear diversification strategy and chaotic organization and management, which eventually led to A typical failure of the group to advance and retreat.
  Many large companies with low rankings are involved in operating crises caused by external events (such as the epidemic). From the predicament of these well-known companies, we can also see the problems in their organizational vitality. For example, the chain restaurant giant Haidilao has always attached importance to organizational operation efficiency and management talent reserves, but its aggressive expansion strategy has been impacted by the epidemic and its layout The new consumer sector seeks second-curve growth, but has not hatched a successful new business. The loss of strategy has caused its net profit to drop sharply, and it has not been able to enter the top 500 in this year’s organizational vitality list. Similar to the retail and consumer industries under the epidemic and new consumer trends, many established and well-known companies have relied on traditional offline chain stores in the past, failing to respond effectively and timely, digital transformation is lagging, growth is stalling, and performance The vitality of the organization is in urgent need of improvement due to the landslide.
  Some companies lacked foresight of the downturn of the industry cycle, or were unable to withstand the “black swan” of industries such as tightening of regulatory policies. Under high leverage operations, financial risk “thunderstorms” appeared and fell into debt crises, such as China Evergrande, Real estate companies that rely heavily on debt, such as China Fortune Land Development Co., Ltd., have blindly and radically expanded their business. The decision-makers have misjudged the macro situation, failed to properly assess the impact of policies and controlled credit risks. They are now in a debt repayment crisis. Another example is the impact of the fall in pork prices in 2021. Animal husbandry giants such as Muyuan, New Hope, and Wen’s shares, which fell sharply and suffered huge losses. Some industries have encountered the “iron fist” of the regulatory authorities due to the exposed industry chaos and disorderly competition during the period of rapid development, such as the “double reduction” policy for the education and training industry, and the platform economy antitrust policy for the Internet industry. And the “Personal Information Protection Law”, the organizational vitality of companies in the industry has been greatly tested. As these regulatory policies have not been fully implemented when this list is made, the long-term impact on the industry has not yet fully manifested. Companies are still on the list, and the rankings have not yet fully reflected the impact of regulatory policies, but it remains to be seen whether their organizational vitality can help companies successfully turn crisis into opportunity.

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