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International And Agri Business Case Study

3180 words - 13 pages

International and Agri-business Case StudyAbstractThis case study focuses on the problem occurred in Chundu Group. The case provides specific false cause of large company without advanced management strategy. The article examines the start, development, mature, decline stage of the company. The research methodology is qualitative and inductive. First, we discuss the business environment and organisation of company Chundu. Second, we provide the past and the current management strategy. Third, we discuss the reason that caused the situation. The fourth we considered is several alternatives. Last, we provide recommendations and a detailed plan of action for turning around company Chundu's business strategy.BackgroundChundu Group is a famous ham manufacturer in China. Chundu Group started from the first western ham and it is famous in China as dancing ham. It is a twinkling star in the meat processed food industry. It is the most illustrious period for Chundu Group from the late 1980's to the early 1990's. The total output value in 1998 reached as high as 3.324 billion Yuan with a sales income of 2.236 billion RMB (Anon 2, 2002). When the new millennial began, Chundu ran into morass. The aspect appeared from illustrious to decay. The group shapes its course that centralizes resource, emphases breach; optimize net to solidify emphasis market. However, because of lack of capital, the product structure can't be modified in time, the competition is debased. The management outstanding achievement continued debases. Production has been stopped in some manufacture apartment. In addition, financial policy is been adjusted. All the facts bring the company on huge bad. The major business margin is -227,805,988.33 RMB in 1999. The margin ratio of plastic film is -71.78%. The market share of Chundu ham debase from 70% to 15% during the ten years.In intense contrast, another super meat processed group--Shuanghui showed different situation because of different management. Shuanghui achieved profit tax 502 million RMB, increased 69.5% compared with last year. It entered the sharp develop orbit. Wang long, the president of Shuanghiu said that management is the life of enterprise, they wan because of management (China Economy, 2002)The Receivables of Chundu Group in 2002 shown as figure 1:(Sauce: Sunsc,2002)In fact, the multibusiness Chundu adopted is not wrong straegy. Multi-business strategy can be succeed when the enterprise possess external environment and internal condition. Why does Chundu changed so seriously in short time? The main factors affected the failure of Chundu shown as follow:"hMarket demand and competition.Chundu invest the vocation, which Chundu managers didn't understand well. Many of the vocation have little profit. They didn't know the current market demand and haven't competitive advantage. In order to be succeeding, right strategy should adapt at right place and right time."hLocation of the life cycle of the invest targetAny product has...

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