ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. The book focuses on the function of the headquarters of modern large enterprises. It presents the proposition that a modern large enterprise acts as a “substitution function,” rather than a “production function”. The book illustrates a model of “substitution function”. It shows that the progress has been made to decode the enterprise “black box”. The book discusses the detour in the process of China’s enterprise development. It analyzes aspects of the relevant history and culture, management concept, market growth, macro-economic institutional environment and the motivation of interest groups. The establishment of the “substitution function model” provides a new framework for the management of modern large enterprises. The management of modern large companies is a process in which, through the management of the variables in the “substitution function,” the headquarters achieves the maximization of a company’s “net substitution benefit”.
