Fundamentals of Business Organization

Content

Introduction———————————1

Company One——————————2

Company Two——————————7

Company Three—————————11

Company Four——————————15

Company Five——————————19

Analysis———————————23

Conclusion———————————26

Reference————————————27

Introduction

In our project, we choose babies’ articles for use this industry of manufacturing. We choose this area because as everyone knows children are the future of a nation. Nowadays, our life level increase fast and more and more people pay much attention to this area. At the beginning, many companies only manufactured simply nursing bottles or nipple of feeding bottles, but now these companies not only produce babies’ articles for use and make them more human nature, but also extend their ranges to manufacture some related products. There are five members in our group and we will research Shan Tou Golden Hair Liability Company, Dong Ling Joint-stock Company, Shang Hai Pigeon Liability Company, Zhu Hai Nuo Ya Liability Company and Shen Zhen POMEI Liability Company these five companies, and then analyze them from the organization structure, the external environment and the marketing mix these three aspects. In external environment, we will divide it into PEST-----political-legal factors, economic factors, social-cultural factors and technological factors and competitive environment-----Porter’s five forces these two aspects to analyze. In marketing mix, we will analyze it from product mix, policy of price, place (distribution channel) and promotion these four aspects. At the end, we will summarize the similarities and differences of every company. 

Analysis of Shan Tou Golden Hair Liability Company

Shan Tou Golden Hair Liability Company is a professional company, which is produce children goods or some other related products. Through research, I will analyze this company from organization structure, external environment and the marketing mix these three aspects.

First of all, is the organization structure.

        

        

Chart One

The organization structure of this company is a divisional structure. This company has four main brands, so they choose this kind organization structure. The advantages of this kind organization structure are we can clear see these four brands and every brand has his own products, markets, responsibilities and profits. If there has something wrong with the goods or services, the company can clear see which product has the problem. For example, if customer complains about the quality of one product, the company can clear know what the brand of this product is and then deal with it efficiently. The disadvantage of this structure is in this company, every brand is an independent division and they can develop policies independently. If this company wants to control these four brands in a common way, it will be a little harder because every brand has his own policy and they think theirs are more suitable themselves, maybe they can’t accept the new policy immediately.

Secondly, is the external environment analysis----------------political-legal factors, economic factors, social-cultural factors and technological factors.

In political-legal factors, Health and safety regulations affect the company. This regulation protects employees when they get ill or has some accidents during working. For example, painter this position is a harmful working, enterprise should in line with the rules gives employees extra allowances every month. The Shan Tou Golden Hair Liability Company belongs to industry of manufacturing, so enterprise should provide related protect measures, such as provide masks for employees when they did weld working.

In politic, this company is located in Guang Zhou Province. This area is the economy develops area and near the port. Many traders come to China often pass this place, so this brings many chances to company.  

In economic factor, if a company wants to play an important part in the market, they should let as many as possible people know their products and buy them, so it has to build consumer confidence. Now, when customers buy goods they will consider the reputation of the company. Has high reputation company, their products will best selling. Conversely, low reputation company will lose the market. Thus, the company must foster self-reputation. The company can send employees to attend some training course to improve their responsibility, so customers will trust on products.

In social-cultural factor, nowadays, the country’s economy increases fast and the level of life has improved a lot. More and more people pay much attention to the goods of babies’ that is changing the life style. This company should design more and more products which can attract people’s eyes, make them can accept it quickly.

In technological factors, this company recommends new production technology, such as CAD, ERA and some other international highest design and produce technology. So this company has the top production devices that can produce high quality products.

Thirdly, is the competitive environment. To this company, they have the threat of substitute products or services. At the beginning of this company, due to the backward technology, other companies’ nursing bottles that can warn the temperature is high, which instead of this company’s simple nursing bottles. If they won’t improve their technology to produce new products, they will replace by other companies.

The other competitive factor is rivalry among existing firms. Nowadays, people pay much attention to the babies’ things and in this sphere, has existed many powerful companies such as Pigeon. To this company, they must have their own special products and improve their technology properly, so that they can have strong power to compete with other company.

Finally, is marketing mix--------product mix, policies of price, place (distribution channel) and promotion.

Firstly is the product mix. In this part, the width is ten. Width-----number of product line. This company has ten product lines, they are clothes, things on bed, gifts, toys, plastics goods, nursing and nipple of feeding bottles, baby bikes and beds, shampoo, laundry detergent and skin oil.

The length is four. Length------number of product item. This company has four brand they are ‘Lucky Baby’,Xia Yi dai’,‘Baby Lucky baby’and ‘Xin Fei’. The two main brands are ‘Lucky Baby’ and ‘Xia Yi dai’.

For the packaging decisions, this company use similar packaging decision. The advantage of using this packaging decision is costumers can identify their company’s products clearly and easier.

Then, is the policy of price. In this part, this company uses seasonal discount and reputation policy. This company not only produce babies’ things, but also produce clothes. To sell clothes, they use seasonal discount. For example, in the summer they sell clothes that you can wear in the winter, you can buy these kinds clothes by discount price. The advantage of this way is because the price is cheap and the styles of clothes are not old-fashioned, so that can promote customers buy many products.

This company also has gifts series of products so they can use reputation policy. They can use this way to increase the price, because the quality, design and the cost of the gifts series of products are much higher than other products, so they can raise the price to get some profits.

Next, is place (distribution channel)--------length of this company’s distribution channel. Length-----Number of middlemen in one distribution channel. This company has direct channel and indirect channel these two ways of sales. For example, ‘Xi Fei’ sells the products from manufactory to the wholesalers, the wholesalers will sell the products to retailers or customers, and this is indirect channel. ‘Xia Yi dai’ has the same distribution channel with ‘Xin Fei’. ‘Lucky Baby’ is different from that two. This brand has two kinds of distribution channel. The first one is direct channel. This means manufactory sells the products to the customers directly. The second one is indirect channel. The manufactory sells products to the wholesalers, and then wholesalers sell the products to the align stores, at the end customers can buy the products in the align stores. This shows the length of ‘Lucky Baby’ is longer than others. Has too many middlemen is not a good thing to customers because everyone wants to get much profit, so they have to increase the price, at the end the price will higher the original price lot.

The last one is promotion. This company uses many different ways to promote their products.

First, is setting up a web site on the Internet. This is a efficient way because as everyone known network is the fastest medium and company can put their the latest news on the site, so that customers can know it at the first time. And also, more and more people choose using Internet to research some information, so that can be widely using.

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To customers, middlemen and salesmen use different methods of sales promotion. To customers, during the festivals or yearly celebration the company often sells their products in discount price. Such as in the National holidays of this year, some new styles clothes of ‘Lucky Baby’ has 10%off. To middlemen, this company gives middlemen some free products, in order to have long-term co-operation with existing middlemen because find a good middleman is not an easy thing. To salesmen, the company host some competitions to encourage employees do their job lively. The winner of the competition can have a short-term rest or trip. ...

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