12. Wangfujing President President Union President Office Business Development Retailing General Department Store Super Market Merchants Invitation Finance Auditing Engineering Property & Security Information Technology Human Resource Business School Legal Office Cooperate Newspaper Enterprise Planning Secretary Corporate Branch of Communist Party Cooperate Branch Of Communist Party Union Vice Presidents
13. Wuhan Zhongbai General Meeting of Shareholders Board of Directors Audit Department President Supervising Committee President Office Finance Stock Administration Human Resource Information Training Security Business Development Wuhan Zhongbai Department Store Co., Ltd Wuhan Zhongbai Warehouse store Co., Ltd Wuhan Zhongbai Supermarket Co., Ltd Wuhan Zhongbai Electronic Appliance Store Co., Ltd Wuhan Zhongbai Distribution Co., Ltd Wuhan Zhongbai Property Management Co., Ltd Wuhan Zhongbai E-commerce Co., Ltd Wuhan Zhonglian Pharmacy Co., Ltd.
14. Gome Board Director Executive Vice-president President Decision Committee Headquarter Location Gome Yongle Pengrun Store Management Logistic Inventory Buying Human Resource Information Administration Branding Customer Service Marketing Merchandising Administration
48. Enterprise Name Registration Bureau of Industry and Commerce Approval Certificate (Contract, Feasibility Study Report, Articles of Association, and Application) Certificate of Organizational Code Business License Charter Moment Statistics Registration Customs Registration Foreign Exchange Registration Tax Registration Open Bank Account Capital Certificate Registration Business License Change Bureau of Foreign Trade and Economic Cooperation Bureau of Quality and Technical Supervision Bureau of Industry and Commerce Bureau of Public Security Bureau of Statistics Customs Administration of Foreign Exchanges State and Local Taxation Bureau Banks Law Firms Bureau of Industry and Commerce
49.
Notes de l'éditeur
When the director or CEO of the two most successful companies in China talked about the success of their companies, both of them mentioned the importance of law and government policies. Because China is in huge changes, legal system is under building up and government policies keep changing along with the development of economy. It is very important for companies to closely follow the government’s law and policies to grab opportunities and avoid legal risks. For example, hypermarkets were greatly encouraged by government 10 years ago in China, however the expansion of hypermarkets have been strictly restricted by government in the first and some second tier cities.
Under the current reforms, China government is gradually relaxing its control on economy and let market play more role in the economic development. However, because the long history of planned economy, government still has great influence on retail industry.
There are four major power centers in China’s government system: Communist party of China (CPC), People’s Congress (PC), State Council; and Chinese People’s Political Consultative Conference (CPPCC). These four organizations co-existing and parallel with each other in different levels: National level, provincial level, city level, and district and county levels. Use the PDF file “prc_government_chart” to explain each system. China is a one-party-political system and is ruled by CPC. CPC is a huge system with 73 million members. The CPC is defined by deep vertical and cross-functional integration that extends into leading social, economic, academic and state administrative organizations. Any entity with 3 or more non probationary party member can establish a primary party organization. At the lowest level of CPC organizational hierarchy are grassroots and primary organizations. These group can be find in all kind social organizations such as government, state-owned companies, and Universities. Some foreign retailers such as Walmart have also set up CPC branches. Party congress are organized at the local and national levels. By ways of staggered elections through this chain, the top political leadership obtain its authority. National congress of CPC meets once every five years with over 2000 delegates elected from all over the country. These delegates nominally elect the central committee, a 300 plus person body which, in turn, has responsibility to select 20-25 members of the political bureau. Out of this group, 5-9 individuals are chosen to be the members of standing committee of the political bureau, the center of the party power. The highest leader of CPC is general secretary. The current secretary, Jintao Hu is also the president of China. National People’s Congress National People’s Congress formally exists as the highest organ of the state power, because it constitutes the legislative branch of Chinese government and approve government’s work report, budget allocation and economic plan for the future. NPC is comprised of 3,000 delegates, who meet annually. NPC elects the members of Standing committees, President, vice-president, president of Supreme People’s Court, and president of Supreme People’s Procuratorate. China’ president regarded as head of state. Once elected, the president in turn appoints a premier with approval of the NPC. The Premier serves as the head of stat council. When the NPC is not in full session, Standing Committee of NPC has the right to modify and decide on legislature, supervise all state organs, and may appoint or remove hades of ministries and commissions. People’ congress constitute the highest level of state power at the corresponding level, meeting annually at the sub-nationally level. The leadership of local government, courts, and other offices are elected by their corresponding congress. Supreme people’s court is the highest trial organ in the country, and with supervisory power of local people’s courts and special peoples’ courts. Procuratorates run parallel to the court system. State council Premier is responsible for overseeing the state bureaucracy, including ministries, departments, and leading commissions. Chinese People’s Political Consultative Conference Its members are from other eight political parties, non government organizations (e.g., All China Women’s Union and All China Federation of labor), and a growing numbers of renowned individuals, such as Olympians and musicians. It is a advisory body, supervising and providing advice to government. As described, state and party organizations appear independent of each other, as of operating under distinct chains of command borne of election proceedings. The CPC has continued to have considerable influence over government activities because the significant number of party member in the elections. Without the CPC’s support, it is impossible for a candidate to win an election. CPC rules other organization through its control over key appointments within the central and local bureaucracies and military commands, thus exerting considerable power throughout the country.
State owned retailers have branches of communist party.
This chart is got from the company’s website. This is a leading state-owned department chain. It has communist party branch in each level of the company. The secretary of CPC is ranked the first in the company followed by the president. The Chart shows that the president of unit needs to report to CPC president. Traditionally, union in China is more likely to represent the company rather than the employees. Its function includes distribute some benefits (such as free movie tickets) to employees, organize activities for employees (such as parties), and help build up company culture.
It is a Chinese retailer. It has a supervising committee, which is common in Chinese company. The supervising committee monitors the operation of the company and reports to the general meeting of shareholders. It is learned from European companies.
This is a private retailer.
The Five-Year Plans of China are a series of economic development initiatives. Each plan normally contains detailed economic development guidelines for all its regions.
After the central government publish a Five Year Plan (it is a general guideline), Each province and each section will develop a Five Year Plan for its own region or section according to central government’s general five year plan. E.g., Beijing government will develop a Five Year Plan for Beijing area. Ministry of Commerce will develop a Five Year Plan for Business Development. This plan included the guidelines specific for the development of retail industry. Above is the 11st Five Year Plan of National business Development (2006). The 12nd five year plan of national business development should come out very soon.
Bailian, the largest Chinese retailer, was created by combing Friendship Group (Owner of Lianhua Supermarket), Hualian Group (Owner of Hualian Supermarket), Shanghai Yibai group (the parent of Shanghai Number one Department Store), and Shanghai Material Group. Capital Chain Store Group was created by 13 leading retailers in Beijing including Xidan, Wumei, Xiaobaiyang, and Jingkelong etc.
The special treatments are not only for domestic retailers but also for international retailers. In fact, in order to attract foreign investment and advanced management, some local governments give beneficial offers to foreign retailers. In the first and second tier cities, because the market is fully. Government may not offer special treatment to newcomers. But special treatments are likely to continue as the foreign retailers expand into the lower-tier cities.
The problem is that the fine is small and the punishment is too light.
Primary business area means the geographic area covering 50-70% customers of a retail store
Primary business area means the geographic area covering 50-70% customers of a retail store Minor business area means the geographic area covering 15-25% customer of a retail store.
Regulations are general and many departments are in charge of the implementations.
Cultivate big retailers and distributors in order to compete with foreign companies. The opening of business unit larger than 10,000 square meters should go through public auditing. Building rural supermarkets and modern distribution systerm
Government will control the distribution and price of some specific products.
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