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Chinese Based Companies: Comparative Research Research Paper

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BEIJING Yanjing Brewery

Summary of the Company (The size of the company, in revenues)

Beijing Yanjing Brewery is a Chinese firm based in Beijing. It operates in the entire Asian continent and beyond being one of the biggest brewery firms in Asia. It is known for its common alcoholic brand named Yanjing Beer. Nonetheless, it produces other products like mineral water, soft drinks, feedstuffs, yeast, plastic boxes, and other lucrative products (Food & Beverages) for the Asian and global markets. The company is large enough in terms of its revenues and physical sizes. It is over 2Km2 in size and revenue of US$1,924.5 million as of December 2011. The organization has numerous operations ranging from business to Corporate Social Responsibilities (CSRs). Since its inception in the 1980s, it has survived numerous challenges and grown tremendously in the realms of profitability, productivity, and globalization.

Discussion of the company’s performance over the last 5 years

Beijing Yanjing Brewery has performed considerably in the previous years despite the financial challenges. It has shown remarkable revenue growth and globalized visibility in the last 5 years as evident from its financial statements. In the context of total revenue, Beijing Yanjing Brewery Co. has recorded values of US$ 1,102.4, $1,307.6, $1, 504.8, $1, 633.0, and $1,924.5 million from 2007-2011 respectively (Bloomberg Businessweek, 2012a).

On scrutiny, it is evident that the company has had remarkable incremental trends in its revenues with each year registering a considerable increment. In a similar context, it had net revenue of US$ 60.5, $73.1, $ 99.5, $122.1, and $129.6 (2007-2011) million indicating the same trend of positive progress.

Business Strategies

The company intends to remain competitive in its operations and market visibility. In its strategies, it produces quality products that are marketable within China, Asia, and globally. Quality commodities usually capture and retain customers for the company’s growth. Another strategy utilized is a considerable business positioning that favors operations of the business (Jansson, 2008).

Its location in the capital city Beijing provides it with worldwide limelight, which enhances its globalized operations, market penetrations, and centralized managerial provisions. Additionally, the prices of its commodities are considerable and affordable to the masses. This has promoted the sale of its beverages and food products as well as the alcoholic ones. It similarly produces a wider range of commodities and advertises them thoroughly to capture and retain more clients.

Comparison of the company to its key competitors in the same industry

There are numerous firms in the beverage and food industry. The progress of any depends on its business strategies and the competitive advantages that it establishes and embraces in its endeavors. It is agreeable that the mentioned business operations are of some interest as indicated before. This is an important phenomenon in various contexts. There are both local and international competitors in a similar industry. Nonetheless, Beijing Yanjing Brewery Co. has managed to compete favorably with remarkable results. Its operations and business strategies have underpinned their progress in various contexts. This has related to the aspects of its success and other probable business mechanisms.

Five key questions to be asked to the company

  1. Why did it choose to operate in food and beverages as well as alcoholic drinks (Yanjing Beer) since the two product lines are parallel to each other and might require separate firms?.
  2. Does it have plans to expand to other continents globally including Europe, America, and Africa among others? What are its expansion plans?
  3. Does it embrace the aspects of technology? And if it does, how does it incorporate it in its systems for coherency and competitive advantages?
  4. Is its workforce diversified? And if so, how does it handle the issues of diversity?
  5. Does it embrace change it is operations, business trends, and globalization?

Harley-Davidson, Inc. China

Summary of the Company (The size of the company, in revenues)

Harley-Davidson has a remarkable size in its operations, employees, business, and annual revenues when scrutinized critically. As at the close of the 2011 financial year, it registered total revenues of US$ 5,311.7 indicating its prowess in the business realms. The business has also endeavored to expand its operations in China with a remarkable market share and production rates.

Discussion of the company’s performance over the last 5 years

The company has performed remarkably in the last five years despite the economic challenges. It registered revenues of US$ 4,450, $5,955.4, $4,781.9, $4,859.3, and $5,311.7 million from 2007 to 2011 respectively (Bloomberg Businessweek, 2012b). Its financial performance fluctuated in 2007, 2009, and 2010 with the registration of lower values. Nonetheless, the performance of 2008 and 2011 was considerably higher.

Business Strategies

Notably, Harley Davidson has rocked the Chinese market with its exceptional models of motorbikes. It introduced a novel model of motorbikes that could compete exceptionally in the Chinese market and beyond. Firstly, the company is situated in productive regions of china with its business centers in Beijing and Shanghai. This appropriate location serves as a credible business tactic where customers can be accessed easily and served exclusively depending on their demands. Another notable strategy is pricing provisions. The motorbikes produced by this company are affordable to average earners of the country. Another strategy is the use of promotional strategies as one of the concerned business provisions. Variety, quality, and promotion of its products enhance its market visibility.

Comparison of the company to its key competitors in the same industry

Harley Davidson has a remarkable market share in China compared to some of its competitors. It receives competition from Honda, Yamaha, and other local companies that manufacture similar, but varying products. It is from this context that the entire competition lies. Since the motorbike models provided by Harley Davidson are exceptional in shape, performance, brand name, and credibility, the company enjoys an exclusive market presence despite the stringent competition from its rivals. The commitment of the company to rock the Chinese market with its fresh motorbike products is recognizable and considerable. Competitors have used numerous strategies to outdo the company; nonetheless, Harley Davidson survives plausibly in the very market.

Five key questions to be asked to the company

  1. How does the company survive in the Chinese market despite the cultural and racial challenges?
  2. What exceptional tactics does it use to enhance its market presence and outdo its competitors?
  3. Does it plan to expand its business out of China to earn more global fame?
  4. The prices of its products are considerably higher; does it have plans for future price cuts? Or can it also manufacture motorbikes for ordinary/low earners?
  5. How does it embrace diversity within its workforce?

Cisco

Summary of the Company (The size of the company, in revenues)

Cisco Systems is a technology company headquartered in California, US. In China, it is based in Beijing with numerous outlets countrywide. It deals with computer networking operations to facilitate the IT industry. The company has grown tremendously over the years with its annual revenues expanding remarkably in the recent past. Since Cisco designs, produces and vends Internet Protocol (IP)-based networking, it has a considerable market globally emanating from various countries.

As of 2011, the company had gross revenue of $43,218 million emerging from the sale of its products to the concerned customers globally. Other previous years have equally registered remarkable revenues as indicated later in the past 5 years’ performance review. From these values, it is evident that Cisco is a big company with distinctive business strategies and other characterizing factors. With its numerous employees and distribution channels globally, and using China as a base, the company has a wider market margin and revenue boost.

Discussion of the company’s performance over the last 5 years

Cisco has performed remarkably in the last five years despite the global economic hitches that recently engulfed the entire world. Its revenues in the past five years have shown considerable figures. From 2011 back to 2007 the company registered values of US$43,218, $40,040, $36,117, $39,540, $34,922 million respectively as its annual revenues in millions (Cisco Systems, 2011). Notably, its revenues reduced remarkably in 2009 (US$ $36,117) compared to the previous year (2008), which registered US$ $39,540.

This followed the global economic crisis, which hit the world in 2008. Precisely, the financial performance of the company in China has been remarkable in the past years despite the noticeable challenges. Nonetheless, due to an increase in demand for IP-based networking technologies, the company picked up in terms of sales and revenues.

Business Strategies

The business strategy that Cisco Systems assume in the Chinese market and beyond s is evident in the market realms. Since the company is in the IT industry, it has to enact novel technological provisions and business strategies to remain buoyant in both the local-global marketplace. In China, the company has operated centrally from Beijing where its original headquarters located. This strategic location provides it with considerable business prowess, global limelight, and a remarkable market presence.

Additionally, it has competitive pricing strategies for its clients depending on the kind of commodity purchased. This has allowed the company to prosper remarkably in its endeavors. Another business strategy is the application of promotional factors helpful in marketing its products in China and beyond. Production of quality products and customer focus are other considerable strategies evident in this context.

Comparison of the company to its key competitors in the same industry

Cisco has stringent competitors in the Chinese business arenas. These include the Chinese Huawei, Juniper, HP, Aruba, Hewlett-Packard, Brocade, and others globally. Competition has been stringent but Cisco still has a remarkable market share in such places. Competition is quite stern in the IP-based networking technologies, wireless LANs, and other competitive networking provisions applicable globally. The company is performing comparatively well despite the economic, cultural, and racial hitches. Cisco enjoys a strong brand name beside other competitors hence use this as a competitive advantage against them.

Five key questions to be asked to the company

  1. What are Cisco’s future business plans in the realms of expansion and other business provisions?
  2. What are its major challenges in the IT industry especially in the arenas of competition?
  3. How does it prepare for the economic crisis and emerging competition factors in the IT industry?
  4. What are its Corporate Social Responsibility mandates as it continues to serve numerous communities?
  5. How does it handle environmental, technological, change, and diversity issues?

Li Ning Company Limited

Summary of the Company (The size of the company, in revenues)

Li Ning Compny Inc. is a Chinese based apparel firm designing, manufacturing, and selling athletic shoes, sports accessories, and other equipment used in sporting activities. The company is headquartered in Beijing, China. Since its inception in the 1990s, Li Ning has had global limelight having produced various sporting products globally and sponsored various sporting events. Being in the sportswear industry, the company has emerged with fresh commodities that can compete favorably with other competitors in the sporting arena. In revenues, Li Ning registered US$ 1,415.3 million as of 2011. This is a remarkable income indicating that the company has grown tremendously.

Discussion of the company’s performance over the last 5 years

Li Ning has performed remarkably since its inception in the Chinese territory. It has grasped customers globally having managed to associate with numerous sporting events including the Beijing 2008 Olympics. Notably, it has registered annual revenues of US$ 1,021, $1,060.5, $1,329.5, $1,502.5, and$ 1,415.3 million from 2007 to 2011 respectively (Bloomberg Businessweek, 2012c). Notably, its annual earnings increased remarkably from 2007 to 2010 despite a noticeable drop in 2011. This was due to economic instability and other operational challenges that engulfed the company. Nonetheless, its performance has been remarkable in previous years.

Business Strategies

Li Ning has enacted various business strategies in its endeavors to compete favorably in the marketplace. Since the apparel industry is quite competitive following the emergence of numerous players, the company has to enhance its competitiveness in various aspects. Its location in Beijing has given it’s critical global limelight needed for the prosperity of the business. It can easily access both the local and international markets (D’Angelo, 2009). Additionally, its pricing strategies are quite competitive compared to other firms in a similar industry. Another strategy is that it enhances its distribution channels globally to ensure maximum market penetration. The aspects of quality products, variety, promotion, CSR, and sponsorship to various events are equally applicable in this context.

Comparison of the company to its key competitors in the same industry

The company has been competing considerably with its rival in the sportswear industry. It has captured a remarkable portion of the Chinese market and those of other countries worldwide. It receives competition from Nike, Anta, Doublestar, Puma, Kangwei, Kappa, and Adidas among others operating in apparel and sportswear. Despite the challenges, the company has a considerable market share, revenue, and global visibility compared to other contenders in the same industry.

Five key questions to be asked to the company

  1. What are its strategic objectives in the realms of business and global expansion?
  2. With precisions, what is its marketing mix meant to grasp a considerable global market?
  3. Which external environmental forces does it consider in its business decisions?
  4. Does it have any community-based programs or corporate social responsibilities (CSR) in its operations?
  5. How does it handle business challenges, change management, workforce diversity, and the emergence of technologies in the current globalization arenas?

References

​Bloomberg Businessweek. (2012a). (000729:Shenzhen). Web.

​Bloomberg Businessweek. (2012b). (HOG:New York). Web.

​Bloomberg Businessweek. (2012c). (2331:Hong Kong). Web.

Cisco Systems. (2011). . Web.

D’Angelo, J. (2009). Spa business strategies: A plan for success. Janet D’Angelo. Clifton Park, NY: Delmar.

Jansson, H. (2008). International Business Strategy in Emerging Country Markets: The Institutional Network Approach. Northhampton, MA: Edward Elgar Pub.

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