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The Research on Development Strategy of Dongfeng Cummins Engine Co. Ltd

Author: LuDongMei
Tutor: WangZuo
School: Huazhong University of Science and Technology
Course: Business Administration
Keywords: Dongfeng Cummins Engine Co.,Ltd Strategic Analysis Strategy Planning Strategy Implementation
CLC: F426.4
Type: Master's thesis
Year: 2010
Downloads: 71
Quote: 0
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Abstract


Enterprise strategy management is a dynamic process which is to determine the mission and business target according to external environment and internal business elements, and ensure implementation and achieve ultimate mission. Dongfeng Cummins Engine Co., Ltd (DCEC) is in diesel engine industry which grows rapidly with more and more competitive. DCEC was been the leader of the industry as benchmark in 1980s-1990s. After entering the 21st century, the domestic engine manufacturers start the high growth period, meanwhile Renault, Scania and other high-end foreign manufacturers are also aggressively entering the Chinese market, DCEC faces competition from both domestic and overseas. To keep the leader position, expand the scope of business and seize new business growth chances, DCEC has to formulate its own development strategies and determine the future direction.The text discussed the basic theories of manufacturing strategy management, and researched DCEC development strategy by those theories, system analysis method with demonstration and cases from famous foreign trade the domestic strategy operation.Firstly, DCEC strategic analysis. Analyze the business environment by G-PEST, five forces model and GE matrix analysis method to identify the potential opportunities and threats. Study the status in quo of the company by IFE matrix to analyze the competitive strengths and weaknesses in the industry..Secondly, DCEC strategy planning. Set company’s strategic target based on understanding of DCEC external business environment analysis and internal operating conditions; formulate and select relevant programs to achieve strategic target by SWOT analysis, QSPM analysis and other tools.Thirdly, DCEC strategy implementation. Mainly implementation plan includes market diversification, key customers management, company culture, organization chart optimization, capacity expanding planning, HR management optimization, , product development processes upgrading, encouragement mechanism optimization and so on.

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