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Since China's reform in the economic system and opening to the world , China's sugar industry has been developed rapidly, which has verified the industrial organization theory that in a competitive market structure, industrial organization will expanded gradually , develop an intensive industry concentration and improve its performance . The result from Case study shows that, whether an organization chooses expansion or reduction depends on the resource scarcity rate. And the expansion to control scarce resources is its inner motivation. Uniqueness factors like the local customs, if adopted in the management, can improve the core competence of enterprises and ensure the effectiveness of resource integration. Scale economy must be built on the basis of the scale of economies. According to their own development stage, enterprises may choose to control the whole industry chain or some of the industrial chain links, to gain profits based on the scale or scope of the economies. The Case enterprise has innovated the operating mechanism and developed three patterns, which are mutual benefit, independent operation and contract mode, to achieved the aim of expanding scale, reducing transaction costs, and improving efficiency. KEYWORD: organizationt; marketing structure integration of industrial organization; strategic contingency of organization

Integration and Development of Industrial Organization The Case Study of Sugar Industry in China