Challenges Of China Resource Corporation

The gross profit margin for CC is right around the industry average. Although the numbers seems to be decent, the costs of goods sold are too high. Next, looking at the operating profit margin, the numbers don’t look as great as they should. The numbers are low compared to the industry average in years 2001, 2004, and 2005. This may indicate that CC should look into their prices and costs. In 2001 the net profit margin was very low compared to the industry average. I am assuming this is due to the major expansion. It is also important to look more deeply into the numbers though because the net profit margin is lower compared to the industry average in all of the years. Once again CC should look into their costs and how efficient they are converting sales into actual profit.

Regions’ is a member of Forbes and Fortune 500 (Morgan, 1/23/04, para. 17). Regions revenues also declined 8.44% from 2002 to 2003. Their net income increase 5.15% between 2003 and 2004. Regions three year compounded annual growth for net income was .09% and .04% for five years (Thompson, 12/2003-5/2004). Regions also does not have a good track record of integrating their mergers (Goldberg, Jason, 1/26/2004, para. 20). Profit growth for Regions lagged behind the industry average in 2003 (1/24/2004, para. 1).

Strategies: What strategy or mix of strategies is the corporation following? Are they consistent with each other,

While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.

Barney, J. (2004). Firm resources and Sustained Competitive Advantage. Strategy: Process Content Context: an international perspective, de Wit & Meyer , 285-292.

Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all

European and international RAC: steady volume growth, and cost savings and margin enhancements expected from narrowing of the gap between US and non-US performance comparable cost categories.

Return on assets has declined from 19 % to 14 % in six years. The decreasing efficiency is mainly attributed to international operations. High employee satisfaction scores, both domestically and internationally, indicates a highly motivated work force. Turnover rate of 25 % is pointing in a different direction. Training and internal recruitment provides good environment for learning, innovation and growth.

A large focus was placed on companies relating to real estate, land or mineral resources, or real estate. China is currently affected with large corporations and companies led by corrupt individuals.

Cooper also divested many less profitable businesses over an eighteen year period from 1970 to 1988. The benefit added by the Cooper conglomerate to its business units justifies the costs associated with a corporate / centralized control. Furthermore, Cooper’s corporate management effectively managed and invested in the best opportunities for growth with little political bias.

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):

Businesses have numerous key departments which keep the structure running appropriately and supports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout.

In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.

The initial market entry strategy implemented by Hyundai Korea was a joint-venture. However, after liquidation (1999), the new entry strategy for re-establishment was franchising. The aim of this paper is to show how Hyundai can reposition its operational strategy utilising a management