BYD COMPANY, LTD. CASE ANALYSIS 1. BYD Company, Ltd. (“BYD”) is the world’s second largest manufacturer of rechargeable batteries. Exhibit 1 shows that between 1999 and 2001, BYD’s annual sales grew three times - exceeding RMB 1.3 billion in 2001. Based on the first four months of 2002, BYD’s annual sales are expected exceed RMB 1.6 billion in 2002. Founded in 1995 by Wang Chuan-Fu, chairman and president, BYD has built its reputation by becoming the largest Chinese supplier of lithium-ion batteries to cell phone manufacturers. Exhibit 3 shows that by 2002, BYD was among the top four manufactures worldwide - and was the largest Chinese manufacturer – in each of the three main battery technologies (with about 9% market share in Li-ion …show more content…
As shown in Exhibit 13, the production capacity of major firms in china slightly exceeded 2 million units in 2002, this figure is expected to reach 3.5 million units by 2012 – as shown in Exhibit 14.
Yes! The Chinese auto industry is attractive to BYD. Given the expected growth and demand in the auto industry, combined with Chinese government having stopped issuing production permits for new automotive companies, there are very few remaining opportunities to get in to this booming auto industry. Moreover, BYD is getting a good bargain as the assets of the state-owned Qinchuan Auto are being sold at a cheaper price. The state owned auto manufacturers without foreign partners accounted for 25% of auto sales in China. Many of the SOE manufacturers did not even have R&D departments. Because most of the automobile parts were imported, similar models of cars cost more in China than in USA. The existing foreign joint ventures were selling the vehicles at prices that gave them margins of 10% to 20%. Considering the current situation, there is room for low-priced entrants. Wang always dreamt of applying Li-ion battery technology to develop an electric vehicle. Using newer battery technology and assembling it cheaply, the vehicle could be competitively priced and represent a way for China to leap
1.3. In order to estimate the peso discount rate, assume that the International Fisher Effect (IFE) holds. Groupe Ariel's Euro hurdle rate for a project of this type was 8%. Assume that inflation rates are expected to be 7% in Mexico and 3% in France.
Nuware Inc. is being analyzed in this situation because a large institutional client of the research firm Wyburn Malone is looking to enter an equity position in Nuware Inc. In making their decision, Wyburn Malone has been asked to restate the statements of Nuware Inc. Due to the apparent earnings growth displayed by the company, even in a period of difficult business, Nuware has become a strong investment opportunity. As with all Wyburn Malone’s research projects, the focus of this analysis centres on determining whether Nuware management has utilized over aggressive or too conservative accounting practices, resulting in earnings that are not real in nature.
MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.
At the 27th of May, 2010, BYD auto, together with Daimler AG, a noted Germany-based car manufacturer, formed Shenzhen BYD Daimler New Technology Co. which was committed to develop pure electric automobiles for the Chinese market. The first pure electric auto of the new company is planned to be put into production in 2013.
The strategic design lens assumes organizations are deliberate, goal-achieving entities (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 10). In this view, managers can achieve organizational goals by understanding the fundamentals of design and fitting design to strategy, as well as to the larger organizational environment (Ancona et al., 2005: M-2, 12). In this paper, I discuss the five major elements of strategy – environmental fit, strategic intent, strategic grouping, strategic linking, and alignment – and identify two specific elements as causes of the problems Dynacorp is experiencing with its redesign. These elements are strategic linking and alignment.
Star River Electronics Ltd. is a large manufacturer and supplier of CD-ROMS based in Singapore. It was founded as a joint venture between an Asian venture capital firm, New Era Partners and Starlight Electronics Ltd, UK. It has enjoyed a great deal of success in the past, due in large part to their excellent reputation for producing high-quality discs.
As the November Meeting approaches, CFO Doug Scovanner is faced with the problem of choosing which of the five controversial projects available to accept. Our task is to assume this role and evaluate each of the projects based upon two major criteria. The first is determining the firm’s financial motives by quantifying the projected value added to the firm and the risk associated with each project. When determining to accept or reject projects based upon adding value, the most helpful instruments we have are Net Present Value (NPV) and the
The political lens sees an organization as “an arena for competition and conflict among individuals, groups, and other organizations whose interest and goals differ and even clash dramatically” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 33). It assumes that “In the political perspective, the roots of conflict lie in different and competing interests, and disagreements require political action, including negotiation, coalition building, and the exercise of power and influence, all of which recognize that rationality is local” (Ancona et al., 2005: M2, 33). I will analyze and explain the concepts within the political landscape to explain the new front end / back end structure at Dyna Corporation,
Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?
With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly
MediSys is a U.S.-based medical device manufacturer. It has been developing IntensCare project, a new medical system for monitoring patients in intensive care units. This project represents the most ambitious move in the company’s 10-year history. The company had invested large finances in this project and the market eagerly awaits its launch. The product development team consisting of people from several functional areas of the company, has been working on the product for six months but is now facing significant problems with the product design, clinical testing, meeting the production deadlines, and their own group dynamics. The pressure had also increased because of competitors also planning to launch similar products within the year. Several team members are concerned about meeting the team 's goals. The relationship between team members is quite tense and it doesn’t promise much progress.
Carlson Companies, a private company known for its existence in marketing, business, leisure travel, and the hospitality industries, has over 180,000 employees across the United States. Carlson Shared Services, the Information Technology (IT) division, provides services to its internal clients and thus must support a wide range of applications and services. In 2002, the IT division decided to implement a storage area network (SAN) that in turn would meet the six (6) goals established in order to meet the needs of a growing company.
The Chinese are an emerging economy that has taken over the world's production in recent years. In fact China is now considered to be the world's factory, as all the major players in the world outsource all or some of their manufacturing activities to the country. All this would not have been possible without the help of technology and with the state of globalization being such, that logistics and distances are becoming shorter and shorter.
One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.
Planning system weaknesses: To begin with, fundamental assumptions, such as new plants, inventory carryovers, packaging trends, etc., which are used for initial sales forecast, are entirely made by corporate headquarters. However, the divisional managers assume full responsibility for the estimates they submitted to the corporate head office. As a result, they have to make efforts to increase the overall accuracy of forecast and avoid making changes in subsequent reviews of the budget. Moreover, each product line uses the same forecasting method. It is ineffective for the company to make accurate budget since factors affecting each product line are different, such as industry trends, customer preferences and so on. Lastly, instead of plant managers, the district sale managers raise the sales budgets. However, the plant managers are held accountable for this budgeted profit number, which is connected with their performance and is not controlled by them.