A Study On Risk Management Of A Auto 4S Shop In Xiamen

As a form of car overall service, auto 4S shops are growing at a high speed. Despite the risks in the investments, the lack in varieties and the comparatively low benefits that have been pointed out by experts in the field, the temptation of expanding 4S service shops is irresistible among quite a few automobile production enterprises and dealers. Basing on the present situation of domestic 4S shops, this paper will discuss on how to manage auto 4S shops. Taking Xiamen A auto 4S shop as a case, the paper will give suggestions on how to minimize risks in aspects from the status quo, to the finance, marketing and human resource managements. It also discusses how 4S shops should, after experiencing a rapid development of high-margin, high-return, face the high-risk period of its further development, when the capacity of the enterprise's management is critical for its survival in this competitive business world of car service.The paper consists of five parts as the followings:The first part illustrates what the paper is based on. A brief introduction on the background and content of articles, papers, the design of the structure and the framework; Introducing the theory on which the research on the context, i.e., the identification risk, risk assessment, and risk management tools, is based on., and other aspects of the theory on the basis of this paper.The second part analyzes the present situation of both domestic and foreign auto 4S shops risk management. Starting with the introduction of foreign automotive marketing mode, this part compares the domestic pattern of foreign car sales (auto 4S shop as the mainstream in this field) with the auto marketing in foreign countries and gives a perspective of possible development trends of the car sales in China. Furthermore, it illustrates the risks auto 4S shops are facing from the point of view of finance, marketing and human resources, followed by possible measures in risk management.The third part is case analysis of Xiamen A auto 4S shop's risk management situation. A demonstration of Xiamen auto 4S stores and their status in Xiamen; Applying Porter' theory and SWOT analysis to the study and thus identify A auto 4S shop's competitiveness; As the result of the study, the deficiencies of A auto 4S shop in the course of business risk management are exposed.The fourth part aims at proposing measures for Xiamen A auto 4S shop's risk management. First, the strategic perspective of how to control A auto 4S shop's operating risks; followed by specific measures and estimated results of the practice of risk management.The last part is a summary of the paper.