...The Chinese Fireworks Industry Liuyang, a city in Hunan Province in China, is known as “the home of firecrackers and fireworks”. The fireworks making in Liuyang has a long history and tradition in China, and enjoys a high reputation in the domestic market. It was also the top fireworks exporter in the world, covering 60% of the global production. However, the fireworks market in China faced an intensified competition and several legal restrictions. Jerry Yu, who was running a small family-owned chain of gift stores in New York, was asked to invest in a fireworks factory. He has management experience and global insight with an MBA, but he is challenged to decide whether it is worthwhile to invest in it considering the threats it is facing and the weaknesses of the industry. As far as I am concerned, although the downward trend of fireworks consumption (see Exhibit 1) made the whole firework industry seem like a sunset industry, there are still some opportunities for investing this industry and make profit out of it. PEST Analysis Political Factors In the domestic market, local governments have different regulations regarding fireworks consumption. By 1998, one-third of the cities in China had completely banned the use of firecrackers and fireworks. Another one-third only allowed fireworks in designated places. However, in the mid 2000s, several cities eased restrictions on fireworks. In the meantime, the domestic market still lacks pricing regulation and intellectual property...
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...you to invest in a village-owned fireworks factory. Before you compose your reply, please consider reading the analysis and recommended course of action discussed in this report. The recommended action plan will have a high chance of success because you and the factory employees have shared values and because a great dream should be born - through effort and through fire. I. INTRODUCTION Before making specific strategic recommendations for you or your company, it is necessary to frame such advice by explaining the benefits of an industry structural analysis. An analysis of the overall industry will discuss the characteristics of consumer markets. Then, using Michael Porter’s ‘five forces’ framework, plus consideration for complementors; this analysis will discuss the primary factors in the external environment that can affect a Chinese fireworks business. This report will conclude with a proposed action plan and summary of findings. II. INDUSTRY STRUCTURAL ANALYSIS There are varying countries that may be analyzed here, for example, the fireworks industry in the factory’s domestic market, your own home country, as well as the fireworks industry in significant markets around the globe. In regards to the third sphere of reference, the report looks closest at countries with the following characteristics: having an historically low level of imports of fireworks from China, having a large population, having few laws against the use of fireworks, and having a mature or developing...
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...and structure of this report The Chinese fireworks industry has experienced significant change since China adopted "open door policy", moreover, it has huge market share in the world's fireworks market. But on the other hand, the Chinese fireworks industry also has fatal weaknesses. Therefore, whether to invest in this industry is still a considerable challenge to most investors. The objective of this report is to give some suggestions to Jerry Yu on his decision of the investment on Liuyang fireworks industry. Furthermore, some proposals on how to improve the attractiveness and the competitiveness of Chinese fireworks industry at a long-run level are worked out; from personal level, there are some strategic options to Jerry Yu in terms of handling an individual fireworks firm. To achieve this objective, an industry analysis and a market audit are carried out and a gross conclusion is drawn based on the analyses and suggestions. 2. Industrial analysis The aim of this industrial analysis is to outline the situation of the Chinese fireworks industry in conjunction with analyzing the rivalry within this industry through Porter's five forces model (please refer to Appendix). 2.1 The Chinese fireworks industry overview The general belief was that China-made fireworks actually made up about 80% to 90% of the world's fireworks market. But although Chinese fireworks account for most of the world's market, it can be said as a relatively messy industry in terms of its quality, packaging...
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...rP os t W11003 THE CHINESE FIREWORKS INDUSTRY op yo Ruihua Jiang wrote this case under the supervision of Professor Paul W. Beamish solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2014-11-17 tC In February 2009, Jerry Yu was spending the Chinese New Year holidays in Liuyang (lee-ou-yang), a city known as “the home of firecrackers and fireworks,” located in Hunan Province in China. Jerry was an ABC (America-Born-Chinese). With an MBA, he was running a small family-owned chain of gift stores in Brooklyn, New York. Liuyang was his mother’s hometown. During his visit, his relatives invited him to invest in a fireworks factory that was owned by a village. Mr. Yu had been impressed by the...
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...and the explosion of multi-colored sparks brightens up the sky. The lone rocket signals to the crowd; the Independence Day celebration fireworks show has began. More rockets are propelled into the sky in different combinations; two, three, five rockets fired into the air, each vary in size, shape, and color. The crowd “oohs” and “ahhs” with the beauty of the fireworks. A brief pause silences the crowd again. Thuds ring out from the motors again, to many to count, and the sky is as bright as day, as the countless explosions fill the vision entirely. The grand finale signals the end of the yearly celebration of a tradition that has been passed on since 1777. While many countries still argue over the origin of fireworks, most seem to agree, it was a happy accident by a Chinese cook over 2000 years ago, which brought the world such a beautiful and dangerous technology to the world. Fireworks can be dangerous, and in many countries their use is prohibited, however, production of fireworks as an industry has generated millions of dollars, changed the face of military as the world knew it, and has brought an exciting outlet for fun and celebration. The true origins of fireworks may never be determined. It has been discussed that a Chinese alchemist, not a cook, discovered fireworks, while others state it was in India that fireworks were invented. Regardless,...
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... * Fireworks and firecrackers cannot be replaced * | Competition | | New Entrants | | Supplier | | Buyer | | Threat of Substitutes * Fireworks and firecrackers still cannot be replaced especially in traditional occasions like New Year and Fourth of July. No real substitute can really replace fireworks * What some did was to combine laser beams and fireworks * Added sounds to fireworks Threat of Competition * In 1979, there was a reform towards a market economy. The privatization of these workshops resulted to more fireworks workshop popping up. More competition. * Number of small manufacturers increased after the government started encouraging private business venturees * In China, the total revenue of firecrackers and fireworks increased from 2007 to 2009 * Liuyang, as the capital of fireworks, had an increase in revenue. Give the price here. * BUT more workshops were set up = competition * Also in the Hunan Province, Liling became another major manufacturing community. They werent as famous and their products were not as impressive as those from Liuyang but they were fierce in price competition * Jiangxi Province, Piangxing and Wanzai were competitors for price and quality, especially on the low-and-medium priced market * Dongguan in Guangdong Province had taken advantage of its closeness to Hong Kong and exported their products though * Still, 60% of the all Chinese production...
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...Internal Analysis Current strategy: (CIBC) Retail banking with trust, offshore and capilat market activities. Invest in new banking system, ICBS. (Barclays) Focus on rationalization along with development of the onshore and offshore busineses. Strengths: Well Established (CIBC) | Only major bank serving the Caribbean, this experience has given the bank strong leadership, expertise, and management skills. In addition, CIBC has 40 branches in 8 countries giving it a strong brand and public image in Caribbean | Effective System (CIBC) | (CIBS) that will enable efficient operations and allow the company to go into new channels | Strong Client Relationship (Barclay) | Strong client relationship building system, targeted to its working client base | Weaknesses: Inefficiency (CIBC) | Current banking system is not fully utilized because investment exceeds scale of operations | Ineffectiveness (Barclays) | BRAINS system is ineffective in facilitating internet and telephone banking, and operations are manually intensive and costly compared to competitors. | Competitive Advantage: (CIBC)Well established since 1920’s, is the only major bank serving the Caribbean as a separate unit, and has an effective and efficient banking system (ICBS).(Barclays) Strong customer relationships which resulted in its market position and maintained its margins. Core Competencies: (CIBC)Market leader in credit card sales, retail banking, offshore and capital market activities....
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...MGMT330 Strategic Management Case Analysis & Presentation Questions for the case memos: Case 1: The Chinese Fireworks Industry Discussion Questions: 1. If you were Jerry Yu, would you invest in a Liuyang fireworks factory? Why? 2. Is the fireworks industry a ‘sunset’ industry or an industry still worth being in for the long run? 3. If you were Jerry Yu, and you decided to make the investment, what would you do to win out in the competition? 4. If you were asked to provide advice to Liuyang Firecrackers and Fireworks Industry Department, as Jerry Yu, what would you say? Case 2: The Global Casino Industry Discussion Questions: 1. Examine the structure of the casino industry by using Porter’s five forces model. 2. What has been the effect of the changing industry structure on U.S. casinos? 3. What are the strategic groups in the casino industry? 4. Assuming your group as consultancy for the Macau government, provide some recommendations for the gaining industry in Macau. Case 3: McDonald’s Discussion Questions: 1. What situation did Easterbrook inherit when he became CEO? What are the current forces in the external environment that might affect the new CEO? 2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? 3. What steps could Easterbrook take to fix the problems McDonald’s faced? 4. What other strategies did McDonald’s formulate to achieve a competitive advantage? Case 4: Apple...
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...benefits and drawbacks of Disneyland to Hong Kong, and to assess the influence of Disneyland on Hong Kong in different aspects. Lastly, it suggests ways how the Disneyland Company can improve the present situation. Current Situation Hong Kong Disneyland operates by a joint-venture company of the Hong Kong Government and The Walt Disney Company. The park cost $5.7 billion, of which the Government injected $3.25 billion and Disney Company inject $2.45 billion. The graph below shows Hong Kong government injected more money on the park then the Disney Company. The park is located on 125 hectares of reclaimed land with many attractions, including Adventureland, Tomororrowland, Fantasyland, Main Street in U.S.A., fireworks displays, Sleeping Beauty Castle, Mad Hatter Tea Cups and a few others. The major difference between Hong Kong Disneyland and other Disneylands is having a stunning mountain and sea view. In 2008, “it’s a small world”, a boat ride attraction, Animation Academy for visitors to learn how to draw their favourite Disney characters, Mickey’s WaterWorks, a water-based day parade will be added to the Disneyland....
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...DISADVANTAGES OF FIREWORKS ON HEALTH AND ENVIRONMENT Name of Group Member 1. Nur Izzati binti Abdul Latif 153692 2. Nurhalida binti Abdul Rasid 154082 3. Aifa Syazwani bt Awang Damit 150415 4. Sarah Atiqah bt Abdul Rahim 155656 Group Number: 09 Name of Lecturer: Asiah binti Mohd Shafiee Course: Allied Health Science Semester: 1 PROJECT PLANNING OBJECTIVES. 1. To analyze the function of every substance in the fireworks. 2. To study the properties of substance that cause damage towards health and environment. 3. To find the solution on how to reduce the damage of fireworks. 4. To investigate the rate of damage that cause by fireworks to health and environment. DIVISION OF WORKS. Name Tasks | Nur Izzati bt Abdul Latif. | Nurhalida bt Abdul Rashid | Aifa Syazwani bt Awang Damit | Sarah Atiqah bt Abdul Rahim. | Objectives | | | * | | Division of work | * | | | | Timeline | | * | | | Introduction | * | | | | Discussion of Issues | * * History of fireworks. * Development of fireworks. | * * Properties of fireworks. | * * The type of fireworks. | * * How do fireworks work. | Analysis of Issues | | * * Disadvantages of firework on environment...
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...Hum 111 Abstract Ancient Chinese Contributions. (1) Identify eight to ten of these useful inventions or contributions. (2) Nominate four that you believe are the most ingenious or innovative. (3) Explain why you believe these four inventions or contributions are the most useful inventions or contributions from the ancient Chinese. (4) Identify one invention or contribution that you cannot live without and explain why. The Ancient Chinese Contributions (1) Gunpowder One of the inventions created by Ancient China gunpowder as early first century and was used at that time to make medicine for perpetual rejuvenation. Black gunpowder was not invented till the end of the ninth century and was first used to make fireworks, and later the lighting of fireworks became a Chinese tradition to celebrate festivals. The gunpowder was used in weapons at the end of the 10th Century, when firearms such as exploding arrows heads, flintlock rifles and cannon became available on a large scale. During the 18th century when Western powers invaded China, the Chinese troops were still using flintlock rifles and cannons. At the end of the 14th century a Chinese named Wan Hu fitted a chair with 47 prototype self-made rockets and held a large kite in his hands. His plan was to fly into space and then float back down to the Earth using the kite. The rockets ended up exploding and killing Wan Hu but in his honor In the 1970s, the International Astronomical Union named a lunar crater after...
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...manufacturing. Examining the different methods and materials reveals the uniqueness of the assembly process and how it can literally be applied to any product, method, or material in manufacturing. This will also high light the importance of the advancement of the assembly process both past and present. Studying the industrial revolution provides key elements in how the manufacturing industry has become what it is today. From the invention of the flying shuttle to the innovation behind the assembly line, it can be determined that the development of assembly process machinery and technology is the key to the advancement of our economy and country as a whole. These minor ripples in the pool of industry ended up causing tsunamis and forever changing the landscape of the country as we know it. Looking back at the technological advancements of the industrial revolution it becomes clear that we are on the verge of yet another revolution in industry. The introduction of auto-CAD and the 3-D printer have already started the next wave in what is sure to become a tsunami in the industrial manufacturing industry. Looking over the list of all the different processes and sub-processes there was an initial reaction that was less than positive. Scouring over the list trying to find merit in one of these processes was like trying to pick the pair of rusty pliers to have teeth pulled with. Thinking on the subject over the course of a few days and various activities it...
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...The impact of Cultural Capital on advertisement Class Professor *** Name Date Overview The French sociologist Pierre Bourdieu first proposed the concept of cultural capital. Since the 1980s, social capital has become a popular concept in many disciplines concerned and analysis of important starting point. Hofstede (1980) published a study in the field of cultural significance of the research results. In 1980s, scholars did a large number of cross-cultural consumer behavior based Hofstede’s cultural construct. After the 1990s, globalization and technological revolution in the joint action, cultural issues in all areas of marketing, reflected in all directions, the impact of cultural capital on advertisement journals were seen everywhere. "Advertising." The word of foreign origin, derived from the Latin word “Adteurture”; its basic meaning is the meaning of attention and induce the latter evolved into the English language “Advertise”. In recent years, advertising fills of people’s lives. From the television’s ads, newspaper’s ads, outdoor walls’ ads, to the network, advertising are seen every where. But in different cultural background, consumer values, consumption patterns and consumer behavior are different. Cultural capital has a deep impact on advertising, which cannot be ignored. Today's society is in economic globalization; all the advertising companies cannot separate from cultural capital. We need to know when planning to advertise the nation's culture, and...
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...advanced in technology and products than the rest of the world. We have many things today in this world that is all because of Chinese discoveries and inventions. From spices to material to gun powder and paper making, we have inventors of ancient China to thank. Gun powder, printing, paper making, the compass, porcelain, silk, tea and medicine are some of the greatest contributions given to the world and I know exactly which ones I would want to see the history on when first arriving to China. Gun powder is the first on my personal list of greatest contributions or inventions from the ancient Chinese. Gun powder was discovered when alchemists from china got the idea when dealing with sulfur and other substances. They are said to have been used in some military application during the Tang Dynasty. Some argue that without guns there would be no violence and without gun powder there would be no guns I have to disagree. Guns are only used for violence when they end up in the wrong people’s hand. Guns can be used for hunting which feeds hunters and their families. Guns are used as part of recreation and games as well, and who doesn’t love any type of competition. Lastly, gun powder is used on fireworks and fire crackers. What person cannot think back in their childhood where they played with fire crackers with their friends and line up to see fireworks on the fourth of July? People do not stop and think about what other uses can be attributed to the invention of gun powder. ...
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...contributions to the development of human civilization. The paper was first made during the Western Han Dynasty (202 BC). Another invention was a movable typing printing. The world's first printings were invented in China in the Tang Dynasty (618－907 BC). Chinese began to print mainly with carved blocks. Gunpowder is a mixture of sulfur, charcoal and potassium nitrate. It was used in firearms and as a pyrotechnic in fireworks. It was a useful invention that contributed to the advancement of generating large amount of heat and gas. Chinese also invented the compass. A compass is a navigational instrument that shows directions in a frame of reference that is stationary relative to the surface of the earth. The first compasses were invented for harmonize environments and buildings in accordance with the geometric principles. The invention of compass greatly improved the safety and efficiency travel not only in China but the rest of the world. Porcelain is a specific kind of ceramic produced in the extreme temperatures and was originated in China. Early in the 16th century BC during the Shang Dynasty (1600 BC－1046 BC), the ancient prototypes of porcelain had already appeared in China. The art of Chinese porcelain...
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