190 likes | 294 Views
Group 8 Baldwin . Group member Guo Tao Ping Yang Zhang Xian Zhu Xiao Min Yang Wei Feng. Business Strategy. Differentiation with Product Life Cycle Focus Keeping market share through high quality-price ratio Expanding market share to compete with other suppliers in the same ladder.
E N D
Group 8 Baldwin Group member Guo Tao Ping Yang Zhang Xian Zhu Xiao Min Yang Wei Feng
Business Strategy • Differentiation with Product Life Cycle Focus • Keeping market share through high quality-price ratio • Expanding market share to compete with other suppliers in the same ladder
Organizational Structure • Relative parallel structure to make decision • CEO has veto right CEO (CFO) R&D and Operation Marketing HR
Round 1-5 • Operation • Make sure each product line is full utilized Production • Two Product lines for High End Market • Three Product lines concentrate on traditional markets • To increase automatic production gradually in traditional market
Round 1-5 • Short-term Target • Strengthen Traditional Market to keep profitability • Reduce Capital Cost to keep profitability • Long-term Target • Develop High End Market to achieve high profit margin
Round 1-5 • R&D • To keep at least upper level position in every product lines • Marketing • Expand market share while keeping profit margin
Round 1-5 -Execution • Round 4 (Traditional Segment Market Share)
Round 1-5 • Sales • Traditional / High End Production lines: high investment to expand accessibility and awareness • Others: No investment
Round 1-5 • TQM investment • Gradually invest in all aspects but relatively high investment to facilitate R&D speed and reduce material& labor cost • Finance • Decrease costs of capital through balancing short-term loans and bonds and issuing certain amount of stocks • Prepare enough cash to avoid any shortage of cash caused by wrong decisions or turbulence in the market • Keep profit margin • Decrease labor and material costs
Round 6-8 Target • Differences • Strengthen Traditional Market to keep high profitability • Increase production capability to keep market share • Invest less money in High End market • Largely invest in TQM
Round 6-8 Target • Round 8 • Appropriately reduce costs and investments to keep high stock price while keeping competitiveness
Areas to Improve • Finance& Accounting • Keep a reasonable leverage level • Carefully check profitability of each product line • Be cautious on dividend strategy
Areas to Improve • Marketing& Sales • Pricing policy needs to be carefully designed • Strengthen market forecasting
Areas to Improve • Operation • Invest more money to add production capacity • Invest more money in TQM