Business Plan Of F Company To Establish A New Business Unit For Automotive Exhaust Heat Recovery System

In order to further implement energy saving and emission control andpromote sustainable development strategy, the Ministry of Industry andInformation Technology of People’s Republic of China united5departmentsissued an announcement of Passenger Car Enterprise Average Fuel ConsumptionCalculation Method on March14th,2013. The move had definitely expressedfuel consumption target of producing and selling vehicles for each automobilemanufacturing enterprises. In order to avoid punishment caused by fuelconsumption not met the requirement, automakers try all potential technicalsolutions to cope with the pressure of fuel consumption.Exhaust Heat Recovery System (hereinafter refers to EHRS) is a high-techdevice which is a kind of innovative product to recover exhaust energy duringengine cold start mainly, so as to reduce fuel consumption for vehicles. Theproduct can cope with not only increasingly stringent automotive exhaustemission control regulations, but also to satisfy market demands for low fuelconsumption products. The product, at a macro level, is keeping in line with thestate of pushing forward the technology of the development strategy of productinnovation.This business plan is to through establishing EHRS Chinese business unit tospeed up the process of the product’s research and development, validation,production and sales, so that to fulfill EHRS completely localization in order toenhance F firm’s competitive power in Chinese local market. This business planis to make a detailed marketing plan, to promote the product, quickly occupy themarket, and meet OEM customers’ demands as well as ordinary terminalconsumers’ demands for products in low fuel consumption. The plan is inaccordance with the F Company’s mission, vision, values and goals, realizescompany’s commitment to customers, which is to provide the most optimaltechnical solutions to customers, in the meanwhile the differentiated productstrategy of F Company is able to create considerable economic value and socialvalue. It is a win-win business strategy plan.This business plan will do a comprehensive analysis for externalopportunities, threats as well as internal strengths, weaknesses; through analyzingthe market demand, competition research of domestic and abroad, the plandevelopes an unique business model and precise marketing plan; through the company’s internal resources and value chain analysis, determine the company’soperating strategy; based on the project investment and earnings estimates, fullydemonstrates the feasibility of the project; based on risk analysis of the projectoperation, extremely reduced company’s strategic risks.The main research methods and key technological route are as follows:1. Company’s Analysis, consisting of market sales data, the company’sfinancial data, and the application of EHRS analysis. This part will utilize VRINmodel analysis, value chain analysis, to determine the project target and corevalue, then evaluate the advantages and disadvantages of project through coreresources competitiveness analysis.2. Industry analysis: based on the company’s Marketing Department salesdata and analysis of macroeconomic data, determine the market needs andindustry average growth rate. Through Porter’s Five Forces and SLEPT model ofmicro and macro analysis of the external environment, comprehends the externalopportunities and risks.3. Customer analysis. This part is to evaluate potential market demands andcapacity, and then utilizes questionnaire, deeply discussion with customers andcustomer’s4C study to determine the application prospects of EHRS.4. The competitive analysis is to investigate market research report of FCompany’s Marketing Department, analyze global competitors’ sales volume andselling price as well as marketing strategy, then formulates the domestic marketselling price and competition strategy.5. Market analysis: this part utilizes STP model to define target marketsegmentation and positioning, by lifecycle introduction of EHRS to demonstrategiant sales prospect, by4P’s to analyze customer needs, eventually make thefeasible marketing plan. In the analysis of place and distribution, after analyzedconventional value chain of firm’s, we changed or rather expanded its businessdistribution channel. Due to the business plan just analyzed operation situation offirst5years, the detailed change of business model is not present, but theconsiderable market value should not be neglected.6. Operation analysis is to effectively integrate existing resources,reasonable new personnel and equipment investment, improve the operating plan.Through analyzing the production requirements, and human resources, set up thereasonable organizational structure. Through the simulation of process route andtakt time, reasonably projects production line layout, equipment investment andcapability of production line. 7. Financial analysis is to analyze five-year financial forecast of EHRSbusiness unit of F firm, detail the capital investment and profit distribution ofeach year; The business plan introduces the concept of strategy risks assessment,by questionnaire of16expert level employees, which are from3aspects,respectively strategy risk factors, external environmental risk factors and internalresource and competitive force to evaluate and grade, then compute the riskcoefficient of program operation. Delphi method was adopted during evaluatingweight of each factor, after3loops of evaluation,8high management metconsensus to each factor’s weight in questionnaire. The method could help toeliminate internal divergence efficiently and eventually got credible results, themethod possesses good operability and practical. Investigation of risksassessment is to avoid any subjective judgement, more objectively andsystematically evaluate the risks as well as feasibility of this program.