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The Enterprise’s Development Strategy Research of China North Vehicle Corporation

Author: YangShuWu
Tutor: ZouZhao
School: Capital University of Economics
Course: Business Administration
Keywords: strategic management strategic goal strategy implementation China North Vehicle Corporation
CLC: F426.471
Type: Master's thesis
Year: 2009
Downloads: 166
Quote: 1
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Abstract

International trade had once been considered the engine of economic growth and was called one of the three main powers together with investment and consumption. From the world-wide field of vision, the international status of the automobile industry of a country symbolizes the overall international status of the manufacturing of this country. With the speed-up integration of the world-wide economy, automobile industry occupies the dominant position not only in the domestic economy but also in the international trade of those economic powers, such as the United States, Japan and Germany. In recent 20 years, our country had substantial achievement in foreign trade and vehicle manufacturing. In the field of vehicles, our domestic enterprises have experienced different phases, such as purchasing the technology licenses, joint venture and cooperation, independent innovation, and market development (from domestic market to international market). Due to the dual drive function of investment and consumption, the vehicle market has got over persistent downturn since 2000 and entered an era of rapid development. In 2007, our national vehicle output and sales had both reached to 8,800,000 sets per year and ranked among the world’s top level. However, since the global finance and economy crisis after the United States sub-loan crisis, the international automobile industry has been shocked seriously. Moreover, the remaining effect of the financial crisis has caused the U.S three major automotive groups to face the bankruptcy crisis. Based on the latest statistics showed by China Automobile Industry Association, the vehicle output and sales of our country in 2008 are 9,345,100 and 9,380,500 sets respectively, which are 5.21% and 6.70% higher than those of last year; but the growth rates are 16.81% and 15.14% lower than last year. Simultaneously, with the adjustment of internal trade channels and business operation modes, the reform of foreign trade had been extended and deepened by our country, and the export entities has indeed entered into a diversified period. The profound diversification of the domestic and international environment has brought not only good development opportunities but also severe challenges to Chinese automobile industry. Thus, we should pay more attention to the question that "how can our automobile industry and products integrate into the global market".Being faced with more and more cut-throat competition, China North Vehicle Corporation (hereinafter referred to as Norinco Motors) has been confronted with unprecedented pressures and challenges. Being up against unpredictable changes of the international market, Norinco Motors has exposed many problems, such as the indecisive strategic goal, the prominent conflicts of organization structure, the defective talents and the management system which restrains company’s development. Therefore, Norinco Motors’s instant task is to establish company’s development strategy, to optimize the allocation of company’s resources and to strengthen the company’s competition. A suitable strategy is urgently needed not only from the view of the competition environment of Norinco Motors, but also from the view of the company’s development need.By using enterprise strategic management and international trade theory, this paper regards China North Vehicle Corporation as the research object to study the trends and characteristics of vehicle export development, to see how China North Vehicle Corporation takes advantage of "the spreading effect of military products" to ensure its development direction in the future, to analyze the internal and external environment faced by China North Vehicle Corporation. By finding out the opportunities, threats, advantages and disadvantages faced by the company, it should be studied how to avoid the effects brought by the changes of the world economy. Based on the above preconditions, the company’s overall development strategy should be formulated, which includes strategic goals, strategy contents, main business fields, key points of strategy implementation and so on. Finally, some advices of strategic control shall be proposed.By using the testament analysis and the standard analysis as the combined research method, the author had interviewed the company’s high-level leaders, conducted questionnaire surveys with the company’s employees, and even visited some relevant competent departments in this industry. Combined with the author’s theory knowledge in MBA studies and more than ten-year work experiences in China North Vehicle Corporation, the author propose the company’s development strategy.

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