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Global Business Plan.

Extracts from this document...

Introduction

Running head: GLOBAL BUSINESS PLAN Global Business Plan Luis Gonzales Leslie Nankervis Antonio Sims Ruby Lovett-Starks Karen Wyckoff University of Phoenix Professor Piwtorak Week 5 September 14, 2004 Global Business Plan Introduction: For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences. But in the 19th and early 20th centuries, China was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established a dictatorship that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping gradually introduced market-oriented reforms and decentralized economic decision-making. Output quadrupled by 2000. Political controls remain tight while economic controls continue to be relaxed. AKLR Air Condition Corporation (Briefing): Since the company began operations in 1994, AKLR Air Conditions has invested heavily in people, equipment, systems, facilities, and technology. Its world-class technical center, located in Beijing, China, provides customers with a unique resource. A premier facility for full-service driveline engineering and applied design and testing, the center supports active research programs in a variety of disciplines including state-of-the-art metal forming advancement, thermal and vehicle system efficiency solutions. AKLR Air Condition Corporation, intent is on aligning the mission statement with real time. The organizational concept is to manage the delivery and financing of air conditions, which showcases excellent standards of quality and cost effectiveness for the benefit of China and its consumers. Striving to have a clear vision and mission to improve the quality of its products. The customer service objectives are focused on producing extraordinary results for customers and a very strong culture based on results and accountability management. An integrated system for workforce development, contributes to this goal. A historic tradition and strong sense of community responsibility and community service involvement are demonstrated by employees' efforts that contribute to the growth and development of business goals and an immediate goal of high and effective organizational performance. ...read more.

Middle

Until now, the Chinese government's strategy for the reduction of poverty focused on a limited geographic area, and the objective was to raise average incomes in 592 designated poor counties through a variety of micro- economic interventions. The objective was to lift 10 million people out of poverty each year. The government provided public funds and credit which amounted to almost USD 3 billion in 1999 and to USD 20 billion since 1986, with subsidized loans representing half the total funding. This central government funding is supplemented by provincial and lower level poverty funds. China estimates that GDP per capita of the western regions (12 provinces and autonomous regions) is 200-300 USDs lower than the country's average. There are a growing number of poor people in the cities, as a result of large population movements from rural areas to major urban centers. The number of unemployed has increased due to the restructuring of the SOEs and the public sector. These inequalities and difficulties represent potential sources of macroeconomic and social instability. As stated above, the Chinese authorities are aware of the problems, and are concerned about the risks they present. In this venture for AKLLR air conditioning business funding, it has been decided that our partner owning 51% of AKLLR, will decide on the sources of financing for the project. There will be minimal international financing because the funding should be local to build equity in the investment of the business. This will enable the company to firmly plant its roots in China, which in turn will transpire to be a stable business and create its foundation that it needs to succeed in the Global industry. The financial plan for AKLLR consists of general assumptions, a break-even calculation, a three-year profit and loss projection, and a 12 month cash-flow projection. Together they constitute a reasonable estimate of AKLLR's financial future. More important, the process of thinking through the financial plan will improve the insight into the inner financial workings of the company. ...read more.

Conclusion

This plan concerns the introduction of that product into the China market and seeks contingency for working capital and continued R&D activity. The strategic competitive advantages are performance and cost advantages. The air condition unit saves substantial maintenance time, filtration system, and electricity, while consistently filtering to a higher level of air quality clarity. It's simple design smaller size and low-pressure operation also allows a substantial cost advantage in production. These performance and cost advantages are sustainable in the short to medium term as a result of the web of intellectual property protection built around the technology. The sustainable competitive advantages will be increased over the medium to longer term by reputation building and the fruits of our R&D program. Marketing Strategy The strategic plan is to seek a license agreement with a major air control filter manufacturer and to achieve penetration of China market via that licensee's distribution system. Royalty income from this arrangement will allow AKLLR to fund ongoing R&D for the diffusion of the technology into other air condition markets and other industry applications, e.g. irrigation, aquaculture, brewing and swimming pools. The primary market consists of air conditions filter manufacturers. Air control builders, wholesalers, retail stores and the end consumer are the secondary market. By exceeding the expectations of the secondary market it will generate and pull through the distribution channel. Telephone contact has been made with senior executives from each of the companies in the target market. Initial interest has been positive and meetings have been arranged and will be conducted in the near future. Once a confidentiality agreement has been signed, a video presentation will be made and a product presentation and demonstration will occur for each of the manufacturers. At some point we would expect a preferred candidate to emerge. Before further technical details would be revealed, a heads of agreement would be signed outlining the future licensing agreement. This process will be expected to be complete by end of fiscal year, with a view to launching the product in time for the 2005 summer season. ...read more.

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