Group member Group member Guo Tao Ping Yang Zhang Xian Zhu Xiao Min Yang Wei Feng Group 8 Baldwin

Business Strategy  Differentiation with Product Life Cycle Focus  Keeping market share through high quality-price ratio  Expanding market share to compete with other suppliers in the same ladder

Organizational Structure  Relative parallel structure to make decision  CEO has veto right CEO (CFO) R&D and OperationMarketingHR

Round 1-5  Operation  Make sure each product line is full utilized Production  Two Product lines for High End Market  Three Product lines concentrate on traditional markets  To increase automatic production gradually in traditional market

Round 1-5  Short-term Target  Strengthen Traditional Market to keep profitability  Reduce Capital Cost to keep profitability  Long-term Target  Develop High End Market to achieve high profit margin

Round 1-5

 R&D  To keep at least upper level position in every product lines  Marketing  Expand market share while keeping profit margin

Round 1-5 -Execution  Round 4 ( Traditional Segment Market Share )

Round 1-5  Sales  Traditional / High End Production lines: high investment to expand accessibility and awareness  Others: No investment

Round 1-5  TQM investment  Gradually invest in all aspects but relatively high investment to facilitate R&D speed and reduce material& labor cost  Finance  Decrease costs of capital through balancing short-term loans and bonds and issuing certain amount of stocks  Prepare enough cash to avoid any shortage of cash caused by wrong decisions or turbulence in the market  Keep profit margin  Decrease labor and material costs

Round 1-5 -Results

Round 6-8 Target  Differences  Strengthen Traditional Market to keep high profitability  Increase production capability to keep market share  Invest less money in High End market  Largely invest in TQM

Round 6-8 Target  Round 8  Appropriately reduce costs and investments to keep high stock price while keeping competitiveness

Areas to Improve  Finance& Accounting  Keep a reasonable leverage level  Carefully check profitability of each product line  Be cautious on dividend strategy

Areas to Improve  Marketing& Sales  Pricing policy needs to be carefully designed  Strengthen market forecasting

Areas to Improve  Operation  Invest more money to add production capacity  Invest more money in TQM