长城汽车有限公司 企业政策分析 Executive Summary of Great Wall Motors Co., Ltd

Executive Summary of Great WallMotors Company——Operation and Governance AnalysisStudent Number: u5424825 Name: Yuan CHENCourse name: Engineering ManagementDate: 12/04/2014School of EngineeringTable of ContentsAbstract (1)Introduction (1)Operation and Governance Analysis (2)1.Structure (2)2.Activity (2)3. Market and Customers (2)4. SWOT Analysis (2)4.1. Strengths (2)4.2. Weakness (3)4.3. Opportunities (3)4.4. Threats (3)5. Dynamics (4)6. Dependencies (4)7. Mission (4)8. Major projects (4)8.1. Pick-up Trucks (4)8.2. SUVs (5)8.3. Sedans (5)9. Company Ethics (5)10. Company Risks and Issues (5)10.1. The Establishing of New Policies (5)10.2. Strong Competitors (6)10.3. Overseas Trade Protectionism (6)11. Company Sustainability (6)12. My Strategic Forecast (6)References (7)Appendix 1 (8)AbstractThis executive summary looks deeply into the operation and governance of Great Wall Motors Co., Ltd, the China’s largest pick-up trucks and sport utility vehicles’ manufacturer. In this report, the company’s organizational structure, activity, market, customers, SWOT, dynamics, dependencies, mission statement, major projects, ethics, risks and issues and sustainability are elaborately analyzed. At the end of the report, a brief strategic forecast from the author is provided.IntroductionGreat Wall Motors Co., Ltd，formerly known as the Great Wall Industry Corporation, is China’s largest pick-ups trucks and sport utility vehicles’ (SUVs’) producer, which was formed in 1984. It was the first Chinese private auto manufacturer to become a public company, which is headquartered in Baoding Hebei Province in China. Currently, it has ability to product 800,000 vehicles (including pick-ups, SUV, CUV (Car-Based Utility Vehicle or crossover), MPV (Multi-Purpose Vehicle), etc.) per year, with the ability of independent supporting of high quality core components such as engine, transmission, front axle, rear axle etc. Great Wall Motors exports their productions to over 120 countries including Australia. More than 30,000 customers have chosen Great Wall vehicles since the Australian launch in 2009.Operation and Governance Analysis1.StructureGreat Wall Motors Co., Ltd has a strictly organizational structure. (Please refer to Appendix 1.)2.ActivityThe main activity of the Great Wall Motors Group is manufacturing and sale of vehicles (principally pick-up trucks, SUVs, and sedans). The Group also engages in the production and sale of major automotive parts and core components used in the production of pick-up trucks, SUVs, and sedans (Great Wall Co., Ltd., 2013). Besides, a number of other kinds of vehicles, including MPVs and special vehicles are produced and sold by the company these years as well (Great Wall Co., Ltd., 2013). Moreover, the company has been continuing providing their customers of comprehensive after-sales services and sales network.3. Market and CustomersGreat Wall Motors’ market comprised of domestic market and overseas market. For national market, the Group focuses more on the selling of pick-up trucks as well as relevant automotive parts and components to domestic rural villages, at the same time, expending the SUVs, sedans, and MPVs’ market to meet the low-end market’s needs in the urban area of China. As for the overseas exporting, the Great Wall exports most of their products to five main countries, they are listed in descending order as follows: Russia, Australia, Chile, Algeria and Iraq, as well as many other countries (Great Wall Co., Ltd., 2013).4. SWOT Analysis4.1. Strengths!Government’s support. As a national company, Great Wall’s products have absolute advantage in the cost against the import products. The cheap labors resource, national policy’s protection and huge market needs in China create abetter growth environment to the Great Wall Motors.!Market positioning. While the foreign brands are focusing on the high end markets and presuming luxury users experience, Great Wall sets its target to the mid to low end consumers, and pay more attention to the pick-ups’ manufacture.This strategy allows them build an impressive band images, and almost monopoly China’s pick-up industry.4.2. Weakness!Lack of innovation. Although the Great Wall Motors has successfully became the leader of the China’s pick-ups and SUVs market, they rarely make big breakthrough on the products’ development, which means they can hardly catch public’s eyes by publishing evolutionary products.!Lack of maturely technology. Great Wall Motors has only 30-year history, which means that the company is not mature enough to manufacture relatively high technology vehicles compared with those developed motor companies inner or out of China.4.3. Opportunities!Industry chain. The automotive industry is a large-scale industry that depends on servicing in many sectors. Therefore, the services provided expand to a much larger network. Selling a car product will be followed by the need to provide several inter-related disciplines such as, car servicing, testing, and maintenance. !Market expending. Using cars in China is becoming an essential part of life that cannot be dismissed. As families are continuously engaged in more work, their need for an effective car is vital. Exploiting this need is a great opportunity for Great Wall Motors strategy.4.4. Threats!Competitors. Great Wall Motors has been continually facing fierce competition since the automobile market is sharing by variety of automotive companies. Thus, the unsteadily outside environment may incur a lot of potential risks and pose threats to the Great Wall Motors.!Economic globalization. Influenced by the economic globalization, Great Wall Motors has to be exposed to the high risk of financial crisis and many other unsure or unpredictable potential threats.5. DynamicsCurrently, Great Wall Motors (GWM) has already owned a Research and Development team (R&D team). The Group’s new technology center is expected to commence operations at the end of 2014, with abilities to virtual car design for the entire product lines of pick-up trucks, SUVs and sedans (Great Wall Co., Ltd., 2013). The sophisticated R&D equipment and systems that GWM owns enables the R&D team to develop and design their products in respect of testing, prototype making, design and engine at the world’s top standard (Xie, 2013).6. DependenciesAs a state-owned enterprise, GWM relies heavily on the government’s supporting, contracts a lot of projects such as manufacturing government’s cars or police cars. Sales revenues，non-operating incomes (mainly equity incomes) are another two vital components of total incomes, so the company relies hardly on bank loans. Besides, the investment incomes take up a small part as well.7. MissionThe mission statement of Great Wall Motors is: “Meticulous to cars, Sincere to customers.”8. Major projects8.1. Pick-up Trucks“In respect of the pick-up trucks market, the Group has maintained its number one position in terms of sales of pick-up trucks in the PRC (People’s Republic of China) market for consecutive 16 years.” (Great Wall Co., Ltd., 2013). “The Group will continue to develop more new models targeting at the mid to high end market and introduce distinctive products to satisfy demand from customers in different segments, so as to enlarge its overall market share and further consolidate the leading market position of its “Wingle” pick-up trucks” (Great Wall Co., Ltd., 2013).8.2. SUVs“In respect of the SUVs market, as a result of the introduction of the upgraded version and sport version of Haval H6 in the [Year 2013], the sales recorded a rapid growth and the SUV models of the Group maintained a leading position in the domestic SUV market.” (Great Wall Co., Ltd., 2013). The Group will continue to adopt product specialization strategy. In view of the strong demand for SUVs in the PRC, the Group will further enhance the competitive edge of its SUV brand and product line through constant upgrade and replacement of existing products after the launch of Haval as a stand-alone brand (Docin database, 2012).8.3. Sedans“In respect of the sedans market, the Group maintained a steady growth in the market. The Company will continue to focus on class A privately owned sedans through developing new models, replacing old models and enhancing energy saving and environmental-friendly applications to expand its customer base, and strengthen its products’ competitive edge so as to enlarge its market share gradually” (Great Wall Co., Ltd., 2013).9. Company EthicsGreat Wall Motors takes their company ethics as their core values: Integrity, responsibility, development and sharing. The Group always follows the “ Wolf and Rabbit Spirits”, in which the wolf represents the sharp market reaction ability and proactive awareness while the rabbit stands for a sense of survival, the strong crisis awareness, and flexible response capability. They emphasis the importance of teamwork, pursue excellence, innovation, quality and pragmatic engagement.10. Company Risks and Issues10.1. The Establishing of New Policies!The measures for the prevention of air pollution.!The adoption of “Corporate Average Fuel Consumption System”.!The tightening of overseas and domestic regulations on emission/safety of automobiles.10.2. Strong Competitors!The quality of automobiles produced by joint ventures continues to improve and their prices are falling.!The domestic and overseas automobiles markets become more mature and customers become more demanding on the product quality.10.3. Overseas Trade Protectionism!The increasing technical barriers in overseas market and intensive trade protectionism.11. Company Sustainability!Cooperate with Yingli Solar Group, started the " Golden Sun " PV rooftop and power generation project in June 2012 to practice the energy conservation and realize the low-carbon production.!Fully leverage on the advantages of the Groups products and introduced differentiated products.!Establish a strategic cooperation relationship with key suppliers of automotive parts and components.!Refine products structure by improving market research and developing key models in order to expand into high end and emerging markets.!Attract customers with high quality products and excellent services.!Conduct research and development of new technologies with an aim to enhancing its technology level and innovation capabilities.!Enlarging its product range to enhance brand value.12. My Strategic ForecastForm my perspective, the R&D team of Great Wall Motors Company might introduce the development and manufacturing of small-displacement, hybrid, or nuclear energy vehicles, to meet both policy and market needs. Obviously, the eco-friendly products are the trends of automotive industry in the future.ReferencesBitauto database (2011).Great Wall Motors Co., Ltd Lastest Dynamics.Retrieved 12th April, 2014, from: Bitauto database./zonghe/20110107/1405274988.htmlDocin database (2012). Great Wall Motors Case Study. Retrieved: 12th April, 2014，from: Docin database./p-469949780.html#documentinfoDocin database (2012). Strategic Management of Great Wall Motors. Retrieved 12th April, 2014, from: Docin database./p-479862812.html#documentinfoGreat Wall Motors (n.d). Company Profile. Retrieved 13th April, 2014, from: Great Wall Motors database..au/about/company-profileGreat Wall Motors (2013). Great Wall Motor Co., Ltd. H Shares. Retrieved 11th April, 2014, from: MORNINGSTAR database./stocknet/secdocuments.aspx?symbol=02333&count ry=hkgXieS (2013). Strategic Forecast of Great Wall Motors New Models/Technical Analysis. Retrieved 12th April, 2014, from: XCAR database./201306/news_1067030_1.htmlAppendix 1。