Post on 19-Dec-2014
description
Where is the Way
for Made in China
Group 10 Ma ZhiyuanJiang Yi
Luo yingying
04/10/2023 2
Strive to be excellent!
04/10/2023 3
Made in China
All over the world
cheap
low quality
cheap labor
shoes
toys
small handicraft
Trade Frictions
04/10/2023 4
2002, Golden Gate Bridge ,San Francisco
What’s going on?
ZPMC - Zhenhua Port Machinery Company
Impressive!
04/10/2023 5
shoes
toys
small handicraft
Port Machinery
efficiency
quality
High-technolog
y
Pretty much
money
Efficiency Quality High-technology
Pretty much money
Different!
04/10/2023 6
1992 2010
$1 Million< 20 Employees
> ¥ 47 Billion > 25,000 Employees > 75% Market shares
18 Years
04/10/2023 7
> 100 Ports > 70 Countries > 75% Market shares
Unbelievable!
04/10/2023 8
Why is ZPMC so awesome?
04/10/2023 9
Why is ZPMC so
awesome ?
1 Strategy
2 Strategy
3 Strategy
04/10/2023 10
1• 1992-1998• Periphery Innovation
2
3
• 1999-2006• Core Products Innovation
• 2007-Now• High Integration Innovation
Developing History
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1• 1992-1998• Periphery Innovation
2
3
• 1999-2006• Core Products Innovation
• 2007-Now• High Integration Innovation
Developing History
04/10/2023 12
Limited MoneyLimited people
?
04/10/2023 13
Open up the International Market
Firstly
International Standards
First Decision
04/10/2023 14
International Standards
Lower Price (30%)
Better Service (Periphery Innovation)
Build own deliver system
Punctuality Cut down cost Flexibility
Open up the International Market
Firstly
First Decision
04/10/2023 15
Whole machine loading and unloading
International Standards
Lower Price (30%)
Better Service (Periphery Innovation)
Save 1-3 months Improve efficiency
Open up the International Market
Firstly
First Decision
04/10/2023 16
International Standards
Lowe Price (30%)
Better Service (External Innovation)
Strategy Management
Low cost of Human Resource
Production & customer-oriented Service Marketing Management
Open up the International Market
Firstly
First Decision
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In 1998
25% market shares
No. 1
What to do
next??
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1• 1992-1998• Periphery Innovation
2
3
• 1999-2006• Core Products Innovation
• 2007-Now• High Integration Innovation
Developing History
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Technology
Apply GPS technologyError ± 15mm
Improve Efficiency Decrease Accidences
Core Products
Innovation
Strategic Decision
Cranes with “eyes”
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Cranes with “eyes”
Cranes lift 2 or 3 forty-ft containers simultaneously
Improve Efficiency 50% and 75%, respectively
Technology
Core Products
Innovation
Strategic Decision
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Cranes with “eyes”
Cranes lift 2 or 3 forty-ft containers simultaneously
Qualified Technicians of Human Resource Innovation Management
Core Products
Innovation
Strategic Decision
Technology
Technology
Technology
Strategy Management
04/10/2023 22
Small com
pany
Got the first place
1992 1998 2006
?
What to do
next ?
70% MS
Challenge Yourself
again!
Market leader
25% MS0% MS
04/10/2023 23
1• 1992-1998• Periphery Innovation
2
3
• 1999-2006• Core Products Innovation
• 2007-Now• High Integration Innovation
Developing History
04/10/2023 24
Innovation
Automatic terminal systemAutomatic loading and unloading system
ECT Euromax, Holland
Improve Efficiency by 50% Bid price exceeds 5%-10%
New Business
High-Integration Innovation & New
Business
Strategic Decision
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Innovation New Business
Offshore Heavy-duty Products (hundreds billion market) Heavy-duty Steel Structure (their strength)
In 2009, Shanghai Zhenhua Heavy Industry Co., Ltd.
High-Integration Innovation & New
Business
Strategic Decision
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Innovation
New Business Offshore Heavy-duty Products Heavy-duty Steel Structure
Automatic terminal systemAutomatic loading and unloading system
High-Integration Innovation & New
Business
Strategic Decision
Innovation Management
Strategy Management
04/10/2023 27
1 Strategy
2 Strategy
3 Strategyinevitable
decision
strategy
internationalization
Why do we want to go out?
Get Growing?
More Money? Chinese ambition?
A mixture of profit-driven, development-driven and entrepreneurship
Chinese Wisdom
development-driven entrepreneurshipdevelopment-driven entrepreneurshipprofit-drivenProfit-driven
Every port in the world will see ZPMC
How can we go out?
More importantly …
Entry by trade
Entry by investment
Entry by contract
Criticism on entry by contract
Hard to protect technologies
Operation rigidity
Low return on investment
The world is becoming flat The Last Dinosaur in Heavy Industry
Entry mode
Differences between trade and investmentEntry mode
Use of resources
Relevance of local market
Trade conditions
investment
Nation sense
Industry character-
istics
1. Industry characteristics
Entry by trade
•Labor, technology and capital intensive•Highly standardized products
Entry by investment
•Labor intensive•Product variety and needs volatility
1. Industry characteristicsEntry mode
1. Industry characteristics
Entry by trade•Cheap and diligent labor, cheap land and facilitating finance in China•High-tech support in Shanghai
Entry by investment
•Looking for cheaper labor around the world
2. Use of resourcesEntry mode
1. Industry characteristics
Entry by trade
•Highly standardized port requirement•Highly integrated international market
Entry by investment
•Diverse need in different market•Highly sensitive to local need change
3. Relevance of local marketEntry mode
1. Industry characteristics
Entry by trade
•Self-shipping to reduce transportation cost•Low trade barrier
Entry by investment
•High transportation cost•High trade barrier
4. Trade conditionsEntry mode
1. Industry characteristics
Entry by trade
•High initial investment and high risk
Entry by investment
•Low initial investment and low risk
5. Investment Entry mode
1. Industry characteristics
Entry by trade
•CEO’s intention to offer more jobs to Chinese
Entry by investment
•Pure profit-driven
6. Nation senseEntry mode
Entry mode
Always use your
resources and
Core Competence
to find the most suitable way!
Illumination
04/10/2023 42
1 Strategy
2 Strategy
3 Strategy
What is the power behind strategies?
Who’s steering the liner of ZPMC ?
Name a few successful Chinese CEOs…
They are eclipsed by a man who has built up a much bigger empire in the world, and you just never heard about his name…
What does“59” and “76”mean to you ?
Old
老吾老,以及人之老 , 幼吾幼,以及人之幼。
---孟子
Leading style
“where there is container handling terminal, there is container produced in China.” —— Guan
AmbitiousLeading style
Always work to the midnight, even to the early morning, but be on work at 7:30 am punctually.
Leading style
Energetic
Leading style
Patriotic
Made in China, things to look up
Live in the dorm
Share office with employees
Having instant noodles
Leading style
Austere
Leading style
old
ambitious
energeticpatriotic
austere
Transformational leadership
Transactional leadership
Leading style
Transformational and transactional
2. Support and encourage followers and help them develop and grow on the jobEstablished all kinds of training schools for workers to improve their professional skills
ZPMC launched a MBA program with the cooperation with NOVA University in U.S
He encourages the employees to read.
Transformational
1. Being charismatic
Leading style
Transformational and transactional
Guan has a welding team with 4000
workers, most of them are migrants. As to
how to motivate migrant workers, Guan
said that “it’s not necessary to say big
words to them. They only care about money.” The migrant workers get
wages on the hourly basis. More hours
they are working, more they gain. In this
sense, Guan is a transactional leader.
Transactional
Leading style
Transformational and transactional
Paternal
Leading style
Paternal Management
take care of everything.
assign tasks to subordinates and make sure that they get the work done efficiently and by international standards.
disbelieve democracy within corporation
Chinese characteristics
Guan Tongxian Zhou Jichang
Vision ?
Commitment ?
Moral e?
Culture ?
Watch
Him
Potential ProblemChange of leader
Do U want to be the next of China?
……
Who would be the next ”Made by China” ?
04/10/2023 57
Dream
Strategy
Support
Made in China
Made by China
04/10/2023 58
Made in China
Made by China
Thank you!