Beijing Hua Soon Food Industries Limited Analysis Of The Failure

Beiing Huashun Food Ltd , which is founded in Jan. 1994, imported all the equipments and technology from Japan and Taiwan, produced and marketed the fast-frozen food , with the brand of AnJing. The advantages of this company were : at that time , it was in the elementary period of the development of fast-frozen food , and which there were just several plants to produce such products in China. And there haven't existed any famous brand in the market; and It produced more new varieties of fast-frozen food ; the technology process was advanced at that time. The shortcoming was : all the sorts of the products are not to the taste of the customers in the North China, so the scope of market was narrow, the ability of production was designed 2500 ton per year, which is a little insufficient to develop later. During 1994-1995, the product had occupied the market for their new and special characteristics, and had got profit of 800,000 yuan . Then it continued to develop fast, and got the top. For seeking larger developing, they started to produce some products of middle and low grade, such as dumpling. But they ignored the shortcoming of the company, and lost the advantages of the equipments and the characteristic of the products. As a result, they threw themselves in the competition with many companies like Ruida and Minle, lost the market of high- grade products to Jincheng brand. With the developing of the fast-frozen food enterprises, Huashun found themselves in a tight position. Facing the loss of advantage of outside and inside environment, the management haven't analysed the present situation, and haven't taken efficient measures. The blind development of new products, low efficient management, wrong way of selling channels, the team without cooperation speeds up the bankrupt of the company. The writer of this paper was the vice manager in Beijing Yunong Trade company, which was one of the stockholders of the company . He was familiar with the development of the company. Being a chairman, he got a lot of direct material and experience of the company in 1999-2000.It is a real case from rising to falling of Beijing Huashun Food Ltd. According to order of time, The paper describes the detail of production, marketing, competing and new product development at every stage. The paper also tells us something about the character of leaders. It teaches us how to deal with puzzles in right way after the failed experience of Huashun.The paper analyses the strategy, new product development, selling channels in the management through relevant theories. The paper draws a conclusion that the key reason to failure is that the managers lack of the knowledge and the ability of modern economic management .