Research on Corporate Culture of China’s Longevity Enterprises- Focusing on Kweichow Moutai Group -

Abstract

In last ten years, China’s GDP was grown year by year. The rise in the consumption level of Chinese residents also promoted the sale of goods. Since the reform and opening-up policy, with the economic development, people’s living standards improved, the demand of liquor keeps increasing. In 2010, China became the world’s second largest economies and its status gradually increased in the world. In 2013, the “One Belt, One Road” policy led to an increase in cooperation and exchanges between China and neighboring countries, with a lower trade threshold. These factors created a good external environment for the internationalization of Chinese companies and provided policy support. The development of the liquor industry in 2018 was extremely rapid, the industry’s revenue and profit growth rate was more than double digits. Chinese liquor has a long history, with thousands of years of development, producing many famous liquor brands, Kweichow Moutai is representative in them. Kweichow Moutai Group is a large state-owned enterprise in China. Kweichow Moutai Co., LTD. is the core enterprise of the group, annual production is 40,000 tons. The group’s main business is the production of Moutai and a series of wines. The business model is: purchasing raw materialsproducing products-selling products. The rapid development of Moutai Group has achieved a great success, so the research on Moutai Group has a great value. There is few research on the corporate culture of Kweichow Moutai Group. The research and analysis on the corporate culture of this longevity company will help enrich the research results in this area. The purpose of this paper is to enable the company has direction and planning in corporate cultural construction. The research plays a guiding role in the corporate culture construction to other century brands. Corporate culture plays an important role in the development of enterprises, guiding the operation of the enterprises. there are many definitions about the corporate culture in academia, and different scholar has different understanding about the corporate culture. The appropriate definition cited in this article is: Corporate culture of a company includes: mission, vision, purpose, spirit, values and business philosophy, which are recognized by all employees in the practice of production and management. The research approach in this paper is “synthesis-analysis-synthesis”. This paper introduces Edgar Henry Schein’s three-level theory of corporate culture, and uses this theory to analyze the corporate culture of Moutai group. According to the three levels corporate culture theory of Ed Schein, the corporate culture of Moutai Group can be divided into three steps which from deep concept to execution. With the continuous development of the group, the importance of corporate culture has become increasingly prominent. The success and failure of the enterprise needs to be analyzed in internal factors. Corporate culture is the core of the enterprise. The content of corporate culture includes the managerial philosophy, core values, entrepreneurial spirit, and social responsibility of the business. The long-lived enterprises in the world cannot succeed without the excellent corporate culture. The corporate culture of moutai group is studied from three aspects, namely: managerial philosophy, cultural concept and social responsibility. Mr.Ji’s management philosophy can be summarized as follows: understanding the brewing process of Moutai with a scientific and rigorous attitude, focusing on scientific research for a long time, improving the quality and output of Moutai; adverting Moutai brand with healthy wine; Paying attention to the quality of products; not blindly increase production, rational development; taking inheritance of Chinese wine culture as his responsibility. Culture concept, this aspect has eight parts：mission, vision, core value, enterprise spirit, business philosophy, decision concept, talent concept, leadership philosophy. The concept of this corporate social responsibility: As a large state-owned enterprise, Kweichow Moutai Group not only pursues the development and income, but also undertakes social, economic and political responsibilities, promotes local economic development. The companies to be long-lived is the result of many factors, To Moutai Group, the most important factors is the corporate’s management philosophy and vision, which make Kweichow Moutai a longevity corporate. The companies to be long-lived is the result of many factors, To Moutai Group, the most important factors is the corporate‘s management philosophy and vision, which makes Kweichow Moutai a longevity corporate. In the future, the group will improve the corporate culture according to the industry environment and national policies, with the ultimate goal of long-term brand development. SWOT analysis model is used as a research tool to analyze the corporate culture. The content of the article includes the competitive environment, market prospects and development strategies of the Group’s global market. also involves comparative research method. A multi-level analysis of the Moutai group is presented through forms and charts, scientific research methods are conducive to the study of Kweichow Moutai corporate culture. Finally, suggestions and opinions are put forward for the improvement of Moutai group’s corporate culture. Multi-core as the development direction. The group has a large number of resources, can establish a multi-core development model to develop diversified businesses. and diversify the risks brought by the industry economic cycle and market fluctuations. Help the region transformation. Establish Crisis Awareness and Join it into Employee Education. If the employees have excessive confidence in the development of the group, then the awareness of crisis and risk prevention will be reduced, this is dangerous to the group. Focus on innovation and trend-orientated. In this way the group can find the direction of innovation in the market, make a breakthrough and avoid be eliminated. Add Chinese traditional culture into the construction of Corporate culture.