Group memberGroup memberGuo TaoGuo Tao
Ping YangPing YangZhang Xian Zhang Xian Zhu Xiao MinZhu Xiao Min
Yang Wei FengYang Wei Feng
Group 8 Baldwin Group 8 Baldwin
Business StrategyBusiness Strategy
Differentiation with Product Life Cycle Differentiation with Product Life Cycle Focus Focus
Keeping market share through high Keeping market share through high quality-price ratio quality-price ratio
Expanding market share to compete with Expanding market share to compete with other suppliers in the same ladderother suppliers in the same ladder
Organizational StructureOrganizational Structure
Relative parallel structure to make Relative parallel structure to make decisiondecision
CEO has veto rightCEO has veto rightCEO
(CFO)
R&D and Operation Marketing HR
Round 1-5Round 1-5
OperationOperation Make sure each product line is full utilized Make sure each product line is full utilized
ProductionProduction Two Product lines for High End MarketTwo Product lines for High End Market Three Product lines concentrate on Three Product lines concentrate on
traditional marketstraditional markets To increase automatic production To increase automatic production
gradually in traditional marketgradually in traditional market
Round 1-5Round 1-5
Short-term TargetShort-term Target Strengthen Traditional Market to keep Strengthen Traditional Market to keep
profitabilityprofitability Reduce Capital Cost to keep profitabilityReduce Capital Cost to keep profitability Long-term TargetLong-term Target Develop High End Market to achieve high Develop High End Market to achieve high
profit marginprofit margin
Round 1-5Round 1-5
Round 1-5 Round 1-5
R&DR&D To keep at least upper level position in To keep at least upper level position in
every product linesevery product lines MarketingMarketing Expand market share while keeping profit Expand market share while keeping profit
marginmargin
Round 1-5 -ExecutionRound 1-5 -Execution Round 4 (Round 4 (Traditional Segment Market ShareTraditional Segment Market Share))
Round 1-5 Round 1-5
Sales Sales Traditional / High End Production lines: Traditional / High End Production lines:
high investment to expand accessibility high investment to expand accessibility and awarenessand awareness
Others: No investmentOthers: No investment
Round 1-5 Round 1-5 TQM investmentTQM investment Gradually invest in all aspects but relatively high Gradually invest in all aspects but relatively high
investment to facilitate R&D speed and reduce material& investment to facilitate R&D speed and reduce material& labor costlabor cost
Finance Finance Decrease costs of capital through balancing short-term Decrease costs of capital through balancing short-term
loans and bonds and issuing certain amount of stocksloans and bonds and issuing certain amount of stocks Prepare enough cash to avoid any shortage of cash Prepare enough cash to avoid any shortage of cash
caused by wrong decisions or turbulence in the marketcaused by wrong decisions or turbulence in the market Keep profit marginKeep profit margin Decrease labor and material costsDecrease labor and material costs
Round 1-5 -ResultsRound 1-5 -Results
Round 6-8 TargetRound 6-8 Target
DifferencesDifferences Strengthen Traditional Market to keep high Strengthen Traditional Market to keep high
profitability profitability Increase production capability to keep Increase production capability to keep
market sharemarket share Invest less money in High End marketInvest less money in High End market Largely invest in TQMLargely invest in TQM
Round 6-8 TargetRound 6-8 Target
Round 8 Round 8 Appropriately reduce costs and investmentAppropriately reduce costs and investment
s to keep high stock price while keeping cos to keep high stock price while keeping competitivenessmpetitiveness
Areas to ImproveAreas to Improve
Finance& AccountingFinance& Accounting Keep a reasonable leverage level Keep a reasonable leverage level Carefully check profitability of each Carefully check profitability of each
product lineproduct line Be cautious on dividend strategyBe cautious on dividend strategy
Areas to ImproveAreas to Improve
Marketing& SalesMarketing& Sales Pricing policy needs to be carefully Pricing policy needs to be carefully
designeddesigned Strengthen market forecastingStrengthen market forecasting
Areas to ImproveAreas to Improve
OperationOperation Invest more money to add production Invest more money to add production
capacitycapacity Invest more money in TQMInvest more money in TQM