The Business Development Strategy Of Siping Special Auto Works, Faw

Siping special auto works, FAW group used to have a glorious stage in its developing history: The demand surpassed the production capacity and the profit and tax contribution ranked fifth in Siping city. And it also experienced the toughest stage: Sales tumbled, bottom line went red severely, and cash flow met extreme difficulty. Behind these ups and downs, there existed several reasons: government policy, market change, and production operation. But the number one reason should be the strategic decision of the factory.Strategic management is vital for business growth. But some business managers ignore its importance. So the author carried out the detailed investigation and research in Siping special auto works, China FAW from Oct. 2004 to May 2005 in order to do the business strategic management research. All the information from the investigation and research has played an important role in understanding the business situation, scientific analysing, finding out problems and summing up achievements. The author has checked a let of data and collected a large number of information about the state auto industey policy, the overall auto industry strategic layout of Jiling Province and China's accession to WTO. Therefore, the author has gotten the full confidence in understanding the current auto industry situation, development trend and made full preparation for the strategic environment analysis of this thesis. Hopefully, this thesis can help to some extent business operation of enterprises through the case analysis of development strategy for Siping special auto works and also can draw business operators' attention to strategic management.The thesis work out business strategy by environmental analysis, taking environment, business situation as well as the implementation of stralegy intoconsideration. Enacting a business development strategy should based on strategic awareness, strategic knowledge, strategic information, strategic wisdom and strategic consultancy. Business strategy is about the integrity, long-term plan, fundamentality and strategy for a business development. The mentioned four factors are very important ingredients to a business development strategy. Business leaders should not just focus on planting trees but ignore the whole forest. They should not just be absorbed in the present situation but ignore the future, only care about details but ignore the root. They should not just copy other's experience, knowledge and instructions but ignore strategy. Or else, they would lead the business to a narrow, bumpy and crooked road and even death road.The business development strategy is the vision for the future. It is not the short term expectation. It is long-term goal after change and effort Right strategy can encourage and inspire staff to commit to their work.Here it should be pointed out the strategy is not mere economy target; it should include a systematic and overall strategy goal, the business growth goal and management goal. Take the several year period strategies as an example, the economy target is mainly worked out from net asset rate of return, main business revenue, net profit and net asset. The growth goal is mainly measured by the following three factors:1. Establish the position of first class special application vehicle brand.2. Shape core competitiveness. Have strong investment scheme and marketing capability. Thus, get a comprehensive ability. Business change from task oriented to market oriented enterprise and change from resource-advantage type to competence-advantage type.3. Expand business from the local area to across region.