Strategic Management Report for Mengniu Group
STRATEGIC MANAGEMENT REPORT FOR MENGNIU GROUP
EXECUTIVE SUMMARY
Mengniu Group is now the Chinese second largest dairy enterprise with total assets of 7.6 billion, 30,000 employees and dairy product ability of 4 million tons annually (Mengniu 2006).
This report firstly provides an overview of Mengniu, which includes number of employees, assets, sales, performance, the type of products it provides, its location including an organization chart showing the formal structure of the organization, and other relevant background information. And then an analysis of the Chinese dairy industry 's external macro environment by using the model of PEST is made. This is followed by an analysis of the Chinese dairy industry 's environment by using the model of Porter 's Five Forces. Finally, an internal situation of Mengniu is made by using SWOT model, and recommendations are made for the implementation of the suggestion.
TABLE OF CONTENTS
Executive Summary
1. Introduction
2. An Overview of Mengniu
3. Mengniu 's Vision, Mission, Goal and Objectives
4．The stage of life cycle of the dairy products industry
5. PEST Analysis
5.1 Political Factors
5.2 Economic Factors
5.3 Socio-cultural Factors
5.4 Technological Factors
6. Five Forces Analysis of China 's dairy Industry
6.1 Bargaining Power of Suppliers
6.2 Threat of Entry
6.2.1 Economy of Scale
6.2.2 Product Differences
6.2.3 Access to Distribution Channels
6.2.4 Expected Retaliation
6.3 Competitive Forces of Substitutes
6.4 Bargaining Power of Buyers
6.5 Rivalry among Existing Competitors
6.5.1 Numerous counterbalance competitors
6.5.2 Growth Trend of Dairy Industry
6.5.3 Exit Barriers
6.5.4 High Inventory Costs
6.6 Conclusion
7. General description of the main competitor
8. Strategic Group Map
9. SWOT Analysis
9.1 Mengniu 's Strengths
9.2 Mengniu 's Weaknesses
9.3 Mengniu 's Opportunities
9.4 Mengniu 's Threats
9.5 TOWS Matrix
10. Recommendations
11. Conclusions
List of References
Appendix
1.
EXECUTIVE SUMMARY
Mengniu Group is now the Chinese second largest dairy enterprise with total assets of 7.6 billion, 30,000 employees and dairy product ability of 4 million tons annually (Mengniu 2006).
This report firstly provides an overview of Mengniu, which includes number of employees, assets, sales, performance, the type of products it provides, its location including an organization chart showing the formal structure of the organization, and other relevant background information. And then an analysis of the Chinese dairy industry 's external macro environment by using the model of PEST is made. This is followed by an analysis of the Chinese dairy industry 's environment by using the model of Porter 's Five Forces. Finally, an internal situation of Mengniu is made by using SWOT model, and recommendations are made for the implementation of the suggestion.
TABLE OF CONTENTS
Executive Summary
1. Introduction
2. An Overview of Mengniu
3. Mengniu 's Vision, Mission, Goal and Objectives
4．The stage of life cycle of the dairy products industry
5. PEST Analysis
5.1 Political Factors
5.2 Economic Factors
5.3 Socio-cultural Factors
5.4 Technological Factors
6. Five Forces Analysis of China 's dairy Industry
6.1 Bargaining Power of Suppliers
6.2 Threat of Entry
6.2.1 Economy of Scale
6.2.2 Product Differences
6.2.3 Access to Distribution Channels
6.2.4 Expected Retaliation
6.3 Competitive Forces of Substitutes
6.4 Bargaining Power of Buyers
6.5 Rivalry among Existing Competitors
6.5.1 Numerous counterbalance competitors
6.5.2 Growth Trend of Dairy Industry
6.5.3 Exit Barriers
6.5.4 High Inventory Costs
6.6 Conclusion
7. General description of the main competitor
8. Strategic Group Map
9. SWOT Analysis
9.1 Mengniu 's Strengths
9.2 Mengniu 's Weaknesses
9.3 Mengniu 's Opportunities
9.4 Mengniu 's Threats
9.5 TOWS Matrix
10. Recommendations
11. Conclusions
List of References
Appendix
1.
References: Mengniu 's core competitive competence is to realize strategic targets by successfully managing people as the ultimate objective, by win-win benefit mechanism and innovation, and by integrate the world 's effective resources (Mengniu 2007). In the next three years, compound annual growth rate per share is expected to be higher than 50 percent (Mengniu 2007). 4．THE STAGE OF LIFE CYCLE OF THE DAIRY PRODUCTS INDUSTRY The dairy products industry is something that has long industry life cycle because there are almost no products can fully replace the milk (Kanshu8.net 2007) 5. PEST ANALYSIS The PEST (factors including political, economic, socio-cultural and technological factors) is a scan of the external macro-environment in which the firm operates (Kotler & Armstong 2001). Mengniu Group is located in relatively impoverished Horinger County, Huhhot City, Inner Mongolian, which has brought it many supports from the government, such as tax-free, that other enterprises cannot enjoy (Mengniu 2007).