The purpose and aim of the Twelfth Five-Year Plan is to give way and guidelines for Hong Kong to develop in the shortly hereafter. The Twelfth Five-Year Plan is chiefly for the whole development for China and there are several parts which is chiefly depicting Hong Kong. This provides great chances for Hong Kong companies to spread out their concern if they have high senses to catch the concern opportunities. Swire Group is a variegation of concerns. They can be benefited by the Twelfth Five-Year Plan in many countries including air industry, logistics and the third industries etc. The Twelfth Five-Year Plan is n’t merely gives chances for Swire concerns in Hong Kong, but besides in the Mainland China country since they are a multination company. The undermentioned chapters will demo you how Swire Group has great advantages on different concern Fieldss and how should they capture these great chances.
In 14 March, 2001, the Twelfth Five-Year Plan was passed by the Chinese authorities to turn to a new manner for the national development of supplying a sustainable growing environment for more just wealth distribution, bettering domestic ingestion and societal substructure. Furthermore, the authorities is traveling to heighten the development of interior country. In the hereafter, the will set policies and pull investing in interior country.
Besides, in the Twelfth Five-Year Plan, there are several chapters to speak about Hong Kong. They emphasize Hong Kong should be an of import function for China. Hong Kong has to beef up her international fiscal place.
Furthermore, more co-operations of the Mainland China and Hong Kong should be implemented to go on the Closer Economic Partnership Agreement. These include edifice of substructure and development of new territory. “ Hong Kong-Zhuhai-Macao Bridge ” , “ Guangzhou-Shenzhen-Hong Kong Express Rail Link ” , “ Development of Qianhai New District, Shenzhen ” , and “ Development of Nansha New District, Guangzhou ” . These are the illustrations of be aftering a higher quality populating country and beef uping transit system in Pearl River Delta Region, Hong Kong and Macau.
Furthermore, the Chinese authorities is back uping Hong Kong to develop industrial invention such as environmental industries, medical and instruction services, proving and enfranchisement, invention and engineering, and cultural and originative industries to widen the countries of co-operation and range of services of these industries.
Due to the above execution of policies, it creates tonss of favourable fortunes for Hong Kong companies straight and even indirectly, such as Swire Group. The chief concerns of Swire in Hong Kong are held by a listed company called Swire Pacific Limited. Their nucleus concerns in Hong Kong can be classified into several countries, belongings, air power, drinks, Marine services, and trading and industrial. Swire invests and physiques shopping promenades, populating flats and high rise office edifices. They besides operate a well-known air hose company – Cathay Pacific. Furthermore, they have the licence for Coca-Cola and concerns in sea transit and retail stores of athleticss wears in bulk. Since Swire is runing variegation of concerns, they can be benefited to different parts of the Twelfth Five-Year Plan.
Actually, the Twelfth Five-Year Plan creates many chances for Hong Kong companies. Swire Group is merely one illustration. The others should besides acquire rid of this opportunity to spread out their concern and assist Hong Kong to keep its particular placement.
Findingss and Discussion
Bing a fiscal centre and pull going
The Chinese authorities claimed that they want Hong Kong to keep its international fiscal centre place. Nowadays, Singapore, South Korea and Shanghai is stepping behind Hong Kong ‘s place. However, Hong Kong still hands two advantages, relationship with China and free market. This is what Shanghai or other states still fall behind Hong Kong. Now, the Twelfth Five-Year Plan encourages Hong Kong to develop as an offshore Renminbi centre. Hong Kong should acquire rid of this opportunity to maintain current endeavors and even pull more. It seems that none of the concern with Swire Group, nevertheless it dose. If there are more and more endeavors come to Hong Kong, they need topographic point to develop their concern. They need to put up retail shops in shopping promenades. They need to lease topographic points in office edifices to run the offices. These are what the Swire can offer.
If there is more and more shops are needed to run in one designated topographic point, Swire can run a shopping promenade to pull and group similar sorts of retail stores of different concern. In the shopping promenade, they can besides supply different sorts of activities and shops to do their shopping promenade be popular and to be a well-known trade name. The Cityplaza in Tai Koo and the Tai Koo Hui in Guangzhou are merely making what I merely mentioned.
Furthermore, the Twelfth Five-Year Plan suggested that Hong Kong should farther develop its pilotage. Harmonizing to Airports Council International ( ACI ) study, it showed that the entire figure of riders in 2010. The Hong Kong International Airport sum of riders is about 49 770 000. It was merely behind the London Heathrow Airport of approximately 61m riders and the airdrome in Paris, France, Aeroport Paris-Charles-de-Gaulle was about 53m riders. From the study, it shows that the Hong Kong International Airport is one of the busiest airdromes. Now the the Airport Authority Hong Kong is make up one’s minding whether they should construct the 3rd track in the Hong Kong International Airport. It seems that this undertaking is of import to Hong Kong provided that Hong Kong purposes to protect its air hose industry. There are merely two tracks in the Hong Kong International Airport. The first 1 is for assorted manner and the 2nd 1 is merely for going manner. If the 3rd one is built, it will be for arrival manner. This can work out the one-year capacity job about until 2030. Swire should make something to demo their support to this event since Swire ain several subordinates for air hose companies for both riders served and lading served. Besides, the clasp companies for airdrome services and providing for air hoses. If the 3rd track is built, they will be benefited a batch. The Cathay Pacific and the Dragonair can endeavor for more air path since the capacity in the airdrome is higher. The catering services can be expanded if there are more and more air paths. This besides benefits those ladings served air hose and the airdrome services section. So, Swire can catch this chance to further spread out their concerns into another degree.
ACI 2010 study besides shows that the Shanghai Airport is one of the most growing riders in last twelvemonth. With the Chinese authorities is be aftering to construct 45 new airdromes in 5 old ages to raise the entire figure of airdromes in the Mainland China to 220 in 2016. New airdromes will be built in either in large metropoliss and 2nd or 3rd line metropoliss. This besides creates chances for Swire to further spread out its subordinates ‘ concerns in Xiamen, Shandong, Sichuan etc. Airline industry is still in high profitableness due to the entry demands and immense capital required. Swire besides has experience in this field. Actually, they can stay their advantages by their experiences and strength of their company.
A decennary before, costal large metropoliss were developed by constructing mills. However, in presents, those large metropoliss such as Shanghai are changed to trust on third industries. In other words, they focus on travel industry and other third industry. This makes the export of goods and import of natural stuffs for fabrication is traveling to diminish. Fortunately, the Chinese authorities stress on edifice better substructure, particularly low cost flats for low-income people and development of inner and western country. This requires a batch of Fe ores and steels. Although there are local mineral sedimentations, the end product of local mineral resources is still non yet plenty to run into the high demand. This can compensate the lessening of less fabrication goods end product. Swire Group is runing a Marine mending squad. They have good relationships on the sea. With the increasing of importing Fe and steel stuffs from Brazil, Australia and India, Hong Kong will be the most of import supply base for these few paths in a midway. The HUD Group, jointly owned by Swire Pacific and Hutchison Whampoa, can supply their repairing and technology services to ships.
Decision and Recommendations
The Twelfth Five-Year Plan provides many concern chances for Hong Kong. It gives guidelines and way for Hong Kong development. Swire, as a variegation of concern company, certainly they can be benefited from several countries. Swire can catch the place of Hong Kong, international fiscal centre, to develop tourer shopping promenades, hotels and of class high category office edifices. Swire should acquire rid of this opportunity to put up more shopping promenades and office edifices to foster beef up its trade name name in people ‘s bosom. Furthermore, Swire can besides be benefited from the air industry. Cathay Pacific, as a taking company in Hong Kong, and other Swire Group ‘s subordinates are looking to farther alterations in the Hong Kong Airport. Building of airdromes in the mainland China is a high possible growing for Swire subordinates ‘ concerns in the Mainland China. They should do usage of this to endeavor for a higher place for its air hose companies in the Mainland China. Swire Group is runing a professional Marine squad in seeking energy and for ships mending and technology. Yes, they may able to last due to the paths of China imports Fe and steel stuffs. However, it is suggested that they should develop a better sea transit section to derive the marine lading industry due to their marine experience. This can assist to to spread out their concern more. Every company including Swire Group should work together to assist Hong Kong to develop much better than other metropoliss in China. If Hong Kong can stay its fortes and give critical part, China will be give more resources and concentrate more in Hong Kong. It is a circulation.