BS Final Presentation

8/19/2019 BS Final Presentation

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Global Strategy Corporation


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Prepared by

MAHBUBA KHATUN BAHADUR ALI SOUKAINA TIKEN RITA NE

GLOBAL STRATEG COR!ORATION


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Table of contents•

C#ine$e a%to&obile in'%$try e(ternal en)iron&ent Ma*ro en)iron&ent Mi*ro en)iron&ent

•Dong+eng Motor Corporation Internal en)iron&ent Val%e *#ain

Vrio +ra&e,or-

•Dong+eng S.OT Analy$i$

•Con*l%$ion

•Re+eren*e$



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Introduction

T#e ai& o+ t#i$ pre$entation i$ to analy0eDong+eng1$ internal2e(ternal en)iron&ente)al%ate #o, t#i$ en)iron&ent i$ a3e*ting

Dong+eng1$ ability to operate an' gro, ,iC#ine$e an' global a%to&obile in'%$try4



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Ma*roEn)iron&ent

Analy$i$

!oliti*al

E*ono&i*

So*ial

Te*#nologi*al

En)iron&ental

Legal



6/43GLOBAL STRATEG COR!ORATION

Political• !oliti*al $tability in gro,t# &ar-et$ $%*# a$ In'ia8 Bra0il pre$ent$ opport%nity +or

Dong+eng to gro, it1$ !V $ale &ar-et4

• E*o9+rien'ly go)ern&ent poli*ie$ $%*# a$ e(e&ption or re'%*tion o+ ta(2e(*i$e

'%tie$ in &o$t *o%ntrie$ #elp$ t#e a%to&obile in'%$try to t#ri)e4 :G%ar'ian8 "; globali0ation pro)i'e$ Dong+eng an' t#e a%to&obile in'%$try to

+or& ?oint )ent%re ,it# ot#er big player$ ,it#in t#e global &ar-et4

• Go)ern&ent poli*ie$ to prote*t 'o&e$ti* a%to&obile in'%$try @ Re*ently C#ine$e

reg%lator$ #a)e been *riti*i$e' +or bringing antitr%$t in)e$tigation$ again$t

+oreign *o&petitor$ $%*# a$ BM.8 A%'i4 T#i$ #a$ been per*ei)e' a$ prote*tioni$&

by C#ine$e go)ern&ent +or it$ 'o&e$ti* a%to&obile in'%$try4 :Bloo&berg8 ";


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Economic• Rapi' gro,t# o+ #o&e e*ono&y 9 A**or'ing to IM C#ina i$ t#e

,orl'1$ large$t e*ono&y by 46 in ";


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Social

•A,arene$$ +or E*o9+rien'ly pro'%*t$ @ a$ ,ell a$ t#e global

p#eno&enon C#ine$e pop%lation an' go)ern&ent i$ *%rrently ,or-ing

to,ar'$ &ore en)iron&entally +rien'ly &an%+a*t%ring pro*e$$4

:UNICE8 ";


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Technological

•A**e$$ to internet 9 .it# al&o$t 6; o+ t#e 'o&e$ti*pop%lation a**e$$ing internet4 :.orl' Ban-8 ";


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Environmental•In*rea$e in 'e&an' o+ E*o +rien'ly pro'%*t$

•En)iron&ental reg%lation$ 9 ,it# t#e intro'%*tion o+ Kyoto !roto*ol

an' ot#er en)iron&ental legi$lation in C#ina it #a$ been a big

*#allenge +or t#e &an%+a*t%ring in'%$try in C#ina in*l%'ing t#e

a%to&obile in'%$try to *%t 'o,n t#e e*ologi*al +ootprint on

poll%tion4

•

De*lining global oil re$er)e$ an' in*rea$ing t#e *o$t o+ +%el:G%ar'ian8 ";


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Legal

•I&pro)ing intelle*t%al property la,$ in C#ina 9 A$ t#e C#ine$e

go)ern&ent be*o&e$ &ore prote*ti)e to,ar'$ 'o&e$ti*

a%to&obile in'%$try8 t#ere are in*rea$e' reg%lation$ +or

prote*ting intelle*t%al property :G%ar'ian8 ";


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MicroEnvironment Analysis

•Li+e *y*le

•!orter1$ 6 or*e$


C t Chi ’ t b


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Current China’s automobmaret !"#

E;

E6

G;

G6


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";


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Automobile Industry’s licycle


:So%r*e Keegan an' Green ";


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Porter’s /ive /orces



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Threat of *e0 Entrants LHig# barrier$ +or ne, entrant$

H%ge in)e$t&ent i$ reF%ire'

A')an*e' te*#nology i$ reF%ire'

Di)er$ie' port+olio

S%r)ey by Deront Con$%ltant$ :";


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Threat of Substitutes 3i


:So%r*e .orl' o Meter$8";


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4ivalry among E$istingPlayers 3igh

International *o&petitor$

International in'%$trie$ :7;

&ar-et $#are=


:So%r*e Stati$ta 8 ";<


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Automobile manufacturinplants in China

:So%r*e Stati$ta 8 ";


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5argaining Po0er of Suppliers Lo0

E&ergen*e o+globali0ation

!ro*%re&ent t#ro%g#internet

S&it# et4 al48

:";


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5argaining Po0er of 5uy3igh

In*rea$e' pop%lation

In*o&e gro,t#

Better in+ra$tr%*t%re +a*ilitie$

In*rea$e' n%&ber o+ player$ in t#e

&ar-et


:So%r*e Tra'ing E*ono&


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Passenger vehicle and commercial vehicle sales in China from .1!in million units#

:So%r*e Stati$ta 8

";


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InternalEn)iron&ent

Analy$i$

• Val%e C#ain

•A%'it li$t

•Strategi* *apabilitie$

•VRIO ra&e,or-



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Inbound Logistics

9 G%ang0#o% eng$#en Logi$ti*$ i$ re$pon$ible+or t#e entire *#ain o+ inbo%n' an' in9plant

logi$ti*$ at Dong+eng Ni$$an4

9 Dong+eng Motor #a$ a *ontrolling intere$t inDong+eng Nan+ang8 ,#i*# o,n$ #al+ o+

eng$#en Logi$ti*$

&utbound logist

9 Dong+eng &otor in'%$try i&porCo4 'i$trib%te to $%b$'iary o+ Dong+eng &otor in'

E(p4 Co&perations9 %ality *ontrol pro*e$$

9Man%+a*t%ring pro'%*tion pro*e$$i&pro)e&ent$ an' a*ti)itie$ to boo$tpro'%*ti)ity an' F%ality

9 I&pro)e' pro'%*tion $a+ety8 In ";


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Te*#nologi*al 'e)elop&ent

9 T#e *o&pany pay$ &%*# attention to t#e

in)e$t&ent on pro'%*t$ 'e)elop&ent8


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TEC3&*&L&9ICAL:E'EL&PME*T

P4&

INBOUND LOGISTICS O3er a lo,to t#e

OUTBOUND LOGISTICS O3er a lo,to t#

O!ERATIONS O3er #ig# F%ality an'inno)ati)e pro'%*t to t#e

*%$to&er

!ri&aryA*ti)itie

$

S%pport A*ti)itie

'alue to the customer



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Audit 4esources

oint )ent%re ,it# ot#er *ar bran'$ $%*# a$ Ni$$an8 Hon'a8 Citroen an

Kno,le'ge o+ engineering8 'e$ign an' ne, energy engine

A,ar' State CAD Appli*ation De&on$trati)e Enterpri$e by Mini$try o

an' Te*#nology an' Be$t CSR Inno)ation a,ar'4

Inbo%n' an' O%tbo%n' logi$ti*$ *ontra*t$ agree&ent ,it# G%ang0#o%

Logi$ti*$ an' Dong+eng Nan+ang Motor i&p4 > e(po4

I*TA*9I5LE



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Audit 4esources

inan*ial re$o%r*e$ Capital o+ RMB *o&ponent$ an' a%to&oti)e eF%ip&ent4 :Dong+eng8 ";

!roperty8 plant an' eF%ip&ent


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Audit CompetencesSo*ial re$pon$ibility A**or'ing to t#e Bl%e Boo- o+ Corporate So*ial Re$p

C#ina :";


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4esources Competences

ThresholdCapabilities

• Capital o+ RMB


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'aluable 4are Costly toimitate;

&rgani

De)elop&ent e$ No No No

'4I& /rame0or


:ongfeng Motor’s


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Lo0 costaccess to

distribution

Lo0 costaccess to

distribution

Loacces

ma

Loacces

ma

Lo0 costAdvantage

Lo0 costAdvantage

:ongfeng Motor’scompetitive advantage



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S.OTAnaly$i$

•

Strengt#$

•.ea-ne$$

•Opport%nity

• T#reat


• oint )ent%re$ ,it# #ig# bran' port+olio a%to&obile *o&


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S TREN

GH T

a$ Hon'a8 Ni$$an an' Citron4

• Co$t9*o&petiti)e pro*%re&ent net,or-4

•Alt#o%g# t#e bargaining po,er o+ $%pplier$ i$ #ig# in o)

i$ not a3e*ting Dong+eng a$ t#ey are t#eir o,n $%pplie

•Mar-et $#are o+


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.E

AK N

ESS

•La*- o+ &ar-eting $trategie$4

•!oor *o&&%ni*ation t#ro%g# t#eir ,eb

•#% %$#o% pre$i'ent o+ t#e Dong+eng*orr%ption 4 :T#e ,all $treet ?o%rnal8 ";

• Ba$i* 'e$ign an' +eat%re$ o+ it$ pro'%


•!oliti*al Stability in Co%ntire$ li-e Bra0il an' In'ia ,i


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!O

R TU

NI T

opport%nity to Dong+eng to e(pan' b%$ine$$ ,it# l

• T#e Gro,t# o+ C#ine$e e*ono&y in*rea$e$ p%r*#a$in

,#i*# allo,$ Dong+eng to e(pan' it$ &ar-et $#are4

•Go)ern&ent1$ E*o9rien'ly poli*y8 li-e re'%*ing ta(

be +a)o%rable +or Don+eng to in*rea$e t#e pro'%*tio

an' it$ protability

•Hig# a**e$$ to internet gi)e$ opport%nity to Don+eng

$er)i*e$

•I&pro)ing intelle*t%al property la,$ to prote*t Don+e

•C#ina Being a part o+ .TO it pro)i'e$ Don+en g to

•Hig# litera*y rate o+ ; an' t#e #ig# *o$t o+ +%el g

Don+eng to pro&ote it$ E*o9+rien'ly pro'%*t an' in*

•Lo, e(*#ange rate o+ C#ine$e *%rren*y *o&pare' to

an' E%ro *an bring opport%nity to Dong+eng to in*re

it$ pro'%*t o)er$ea$4GLOBAL STRATEG COR!ORATION


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T

HRE

A T

•C#ina1$ entry to t#e .TO #a$ bro%g#t &ore intern

*o&petition to t#e lo*al a%to&obile in'%$try4

•Rapi' gro,t# o+ 'e)eloping *o%ntrie$ > #o&e e*on

•

T#e C#ine$e Go)ern&ent i$ i&pro)ing it$ p%bli* tr+a*ilitie$8 t#i$ *o%l' re$%lt$ in 'e*rea$e o+ 'e&an'

pa$$enger )e#i*le$4

•E(*#ange Rate l%*t%ation$4

•Con$%&er1$ ta$te are *#anging8 +o*%$ing &ore on

i&pro)e&ent 8*o&+ort an' 'e$ign rat#er t#an t#e

*on$i'ere' to be a t#reat to Dong+eng4

•Hig# Ination Rate


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Strategic T&=S Matri$ ST4E*93TS =EA>*E

&PP&4T,*ITIES

• Dong+eng i$ ta-ing t#eopport%nity o+ C#ine$e

go)ern&ent ne, energy poli*e$to in*rea$e it$ pro'%*tion o+ ne,energy )e#i*le by 58;; %nit$8%$ing it$ -no,le'ge o+alternati)e energy engine4

• Dong+eng i$ not %$opport%nity o+ #ig#

internet :5" o+ C#pop%lation= to i&pr&ar-eting $trategie

• Dong+eng i$ %$ing t ?oint )ent%re$ to i&-no,le'ge o+ &ar-ter&$ o+ 'e$ign4

T34EATS

• Dong+eng i$ %$ing it$ ?oint)ent%re$ ,it# Hig# bran'e'a%to&obile *o&panie$8 $%*# a$

Toyota an' Citroen8 to &ini&i0einternational *o&petition byC#ina being part o+ .TO4

• Dong+eng i$ %$ing it$ *o$t

*o&petiti)e pro*%re&ent an'

• Dong+eng i$ not %$*o&&%ni*ation t#r,eb$ite to a)oi' $%a$ p%bli* tran$port$

• Dong+eng i$ not a'to t#e *#ange$ o+ *in ter&$ o+ 'e$ign a



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Conclusion T#e ?oint )ent%re$ ,it# t#e ot#er a%to&obile *o&panie$ &a'e Dong+e

pre$en*e $trong in t#e C#ina1$ &ar-et4 T#e a%to&obile &ar-et i$ o3e

n%&ero%$ opport%nity +or Dong+eng to i&pro)e it$ po$ition in t#e C#i

&ar-et a$ ,ell a$ to e(plore 'i3erent international &ar-et$4 At pre$en

organi0ation i$ $till pro'%*ing lo, *o$t *ar$ not ta-ing into *on$i'erat

*#ange$ o+ *on$%&er$ nee'$ in ter&$ o+ 'e$ign an' *o&+ort4 Moreo)

&ar-eting $trategie$ an' *o&&%ni*ation are )ery poor ,#i*# *an re$

ob$ta*le +or Dong+eng to in*rea$e a,arene$$ o+ it$ pro'%*t$ a&ong t#



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4eferences !"#•A-an8 O48 Allen8 R4 S48 Hel&$8 M4 M4 an' Sprall$ S4A4 :";;7= PCriti*al ta*ti*$ +or i

!orter$ generi* $trategie$18 o%rnal o+ B%$ine$$ Strategy8 Vol4 " I$$


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4eferences !.#•Keegan8 .4 4 an' Green8 M4 C4 :";


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4eferences !?#•E%ro&onitor !a$$port :";

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