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Enterprises are requiring efficient, specialized and socialized logistics service, and will form a market basis supporting fostering and growing of logistics industry in China.

Extracts from this document...

Introduction

Introduction Enterprises are requiring efficient, specialized and socialized logistics service, and will form a market basis supporting fostering and growing of logistics industry in China. Our company is named XXX and it is an e-logistics company operating in China. Our company is operating on a low-cost and effective base. The aim of the Company is to provide fast and in-time delivery in an efficient way to manufacturers and distributors in China. Opportunities come from Since China opened up itself to the world, it has been in a process of rapid economy development. China is the fastest-growing economy in the world; it had an annual economy growth rate of almost 10 per cent the past decade (World Bank, 2000). Additionally, China accession to the WTO in 2001 is expected to bring a new round of economic growth. According to a report by the International Investment Bank, China's economy is forecast to grow at an average six percent annually during the coming two decades (China.org.cn, 2002). Looking decades ahead into the future, many informed observers see China moving steadily to the top of the world's economic league. The Economist forecasted that, within 20 years, China would become the second largest economy in the world (The Economist, 2001). Due to the rapid development of China's economy, more and more foreign companies have seen China as a potential market. Some of them have already invested in China and others are preparing the investments. China now is the largest source of absorbing foreign investments in the world. According to Ministry of Commerce of People's Republic of China, in the first three months of 2003, the accumulative value of contracted foreign direct investment in China was 22.9 billion and US dollars, setting a record growth rate of 59.59 per cent year-on-year (MOFCOM, 2003). The Economist Intelligence Unit forecast that the FDI in China would reach to nearly 70 billion US dollars in 2005. ...read more.

Middle

Operate on low cost structure, reduce customers inventory-controlling cost. Provide customer with professional inventory control service Help customer to be inline with the modern business development (E-business, efficient Inventory control and etc) Target both domestic and international company Worry-free customer services New business with no reputation and experience Costly for new business to introduce the new service and attract customer Difficult to attract funds Shortage of specialized human resource Opportunity Threat Since WTO, world trade Globally will bring more foreign investors into China, there will be high demand of professional logistic service for advanced operating management techniques Chinese government released a memorandum in March, 2001 which stated that logistics as a key sector in the country's 10th five-year plan, lead up to 2005 by far, there is no professional e-logistics systems in China High competition from foreign companies Easy to imitate To summarize the SWOT analysis, we could develop our strength, overcome weakness, take opportunities and avoid treats. We therefore develop our corporate strategy as below to introduce our acceptance of our idea: Corporate Strategy Objectives ? Low cost structure ? Reliable delivery service ? Professional inventory control service ? Worry-free customer service Strategy ? Reduce unnecessary cost (e.g. Not recruit best subordinates but training for the best) ? Keep good relationship with supplier (Delivery companies, IT service provide, government and etc.) ? Recruit best inventory control manager ? Provide good customer care Implementation We can reduce unnecessary cost by adopt paper less office, not recruit best subordinates but training them to be the best later. Good process design to ensure the efficiency use of resource. Always ask, how much we have saved this week, so that it encourages the innovation of reducing cost. On the other hand, in deal with those stakeholders, it's easier for us who come from the original place-China. We are all familiar with Chinese organization hierarchy and business systems. ...read more.

Conclusion

Therefore they can provide lower price to customer. Which will be a treat to us. Manage Risk Every business has risk, we as a new business there is even more. For example, we need to manage usage of our warehouse, if we cannot find the right supplier, and the warehouse will be unused, then we will loss money. We can arrange the trade off between the demand and price, however, if we set the price too high, or not able to provide service to customer in the peak season due to the warehouse space used up, we are loss credit to customer, so we will give competitor's opportunity to enter and compete. Put the customer first Our service is to ensure the efficiency of customer, any delay of our service will result the damage of customer's benefit. E.g. the delay of product or loss credit and etc. therefore it is important that we can put customer first. Create Capital Our aim is to create capital, with the popularity of globalization, and the booming of Chinese economy, there will be more demand of our service. After the success in the Chinese market, we are going to expend into to internationally. And we think this project can create capital both in financial and social. Reference * Loo D (2002). China's logistics industry presents a golden opportunity. <http://www.tdctrade.com/imn/imn190/markettrends17.htm> (accessed 3May, 2003). * Ministry of Commerce of the People's Republic of China (2003). Statistics of Foreign Investment Utilisation in China in 2003 (01-03). Beijing: MOFCOM <http://english.mofcom.gov.cn/article/200304/20030400084354_1.xml > (accessed 2 May, 2003). * Ministry of Commerce of the People's Republic of China (2003). Statistics by Sorts of Enterprise (2003/01-02). Beijing: MOFCOM <http://english.mofcom.gov.cn/article/200304/20030400081558_1.xml> (accessed 2 May, 2003). * Unknown (2001). China's economic power: enter the dragon. The Economist. March 10 p. 23- 25. * Unknown (2002). Development of China's Transport Network: Constructions Over the Past Five Years. <http://www.china.org.cn/baodao/english/newsandreport/2001june/new11-3.htm> (accessed 2 May, 2003). * World Bank (2000) Finance & Development . Washington: World Bank <http://www.worldbank.org/fandd/english/abstract/0997/016a0997.htm> (accessed 4 May, 2003). 1 ...read more.

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