| dc.description.abstract | Why can some companies perform better than others in the same business environment? It is a main topic in all the management fields. This case study analyzes the resource base and corporate governance mechanism of T Company (TCO). It is found that although TCO operated and profited from entity asset business, the key resources that can truly create sustainable competitive advantage are intangible resources and human resources, including corporate reputation, outstanding CEOs and stability of CEO’s tenure, and a talented professional team, while the physical asset resources, financial strength, and recurring income can only provide short-term competitiveness and performance. In recent years, TCO′s agency problems, such as high short-term behavior, have caused TCO′s lack of long-term strategy and investment layout, a hidden danger for TCO′s sustainable development.
This research puts forward three key resource-oriented diversification strategies for TCO, including (1) actively developing urban renewal and urban unsafe/old buildings reconstruction business, (2) adjusting resource allocation and increasing medium-term and long-term asset investment, and (3) expanding the scope of lending business. Summarizing the key elements of TCO sustainable development, on the resource side, it is to access and effectively use key resources; on the business side, it is to continue the resource-oriented diversification strategy; and on the corporate governance side, it is to improve the selection, tenure and evaluation system of the CEO. The results of this research should help TCO’s future development in particular and provide reference for the government to manage public equity businesses in general. | en_US |