Report on management

Essay by hrbmiracleB, May 2004

download word file, 11 pages 4.0


In this report, the company Lei Shing Hong Machinery (Kunshan) Co., Ltd (LSHM), where I worked before is analyzed with the related organizational behavior theories about management to see how an organization overcomes the resistance to change within itself, how a functional conflict effects the company and how management by objective (MBO) works in the company. Before we analyze the company, we should know some company background information and with the case analysis, I also appoint out my suggestions on the development of the company.


Lei Shing Hong Machinery (Kunshan) Co., Ltd., the dealer of Caterpillar in east China, was fund in Kunshan, Jiangsu Province in 1994 and the prime product is excavator. In the first years it paid more attention to brand building in the market of China, the sales volume was small and most of the customers were government and state-owned enterprises (SOE).

According to the strategies of marketing development in P. R. China, from 1996 LSHM set up a few branches and recruited more salespersons to increase its sales force, and the customer also covered the private work firms. The payment term diversified from cash to defer payment, especially for those private work firms, most of the deals are installments due to the high machine price. However, it was found that the deferred payment could not be collected smoothly and some of them even became bad debts. With the increase of the sales the situation was getting worse and worse. A big part of installments became bad debts. After several times of conference and negotiation, it was decided that all deferred payment deal should be guaranteed by bank and before releasing the machine, all financial assessment reports of the buyers should be submitted to financial division to...