Group 8 Baldwin

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