Case Study Analysis - Beijing mirror Corporation (BMC)
Beijing Mirror Corporations key objective is to timely commercialise their mirror fetching into consideration their financial limitations and art expertise. Speed to market is a critical consideration as only eight geezerhood remain on patents, and the threat of imitation and technological supersession continue to grow with time. Key ratiocinations:
Retain current business entity - monetary ratios highlight the company has significant cash flow and runniness issues. A cash injection is required to drive intersection enhancements to resolve spoilage rates and production limitations; nevertheless, the existing financial position may be a hindrance to securing a loan. Deficiencies in merchandise, finance, distribution, and planetary market experience are similarly hurdles. Clearly, the company does not appear to have the ability or funds to commercialise their product alone in a timely manner, so the real question is whether a enunciate venture is the best solution. With the window of opportunity diminishing, the company call for to focus on the following within the venture decision process.
1. Production capacity, efficiency and process concerns
2. Broaden product applications
2. limit long-term sales contracts
3. Increase distribution channels
4. Recruit global business acumen to scrutinise financial performance
5. Develop marketing strategies to hasten development and sustain advantage
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Asset value optimisation, sales, lease, outsource opportunities
These strategic issues are fundamental to enhancing economies of scale, as well as strengthening the companys price, and market position in the global market.
Domestic joint venture - PAC can provide the cash; however will it be a strategic fit. Their focus appears to be solely on ROI so I would question their long-term support and expectations. BMC is losing money and significant infrastructure expenditure is required, then delaying ROI. There are also no defined benefits concerning business expertise, sales development, or distribution channels. This...
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