Strategic Management Report for Mengniu Group

Essay by iceboycdyUniversity, Master'sA, March 2009

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Strategic Management Report for Mengniu Group

Executive Summary

Mengniu Group is now the Chinese second largest dairy enterprise with total assets of 7.6 billion, 30,000 employees and dairy product ability of 4 million tons annually (Mengniu 2006).

This report firstly provides an overview of Mengniu, which includes number of employees, assets, sales, performance, the type of products it provides, its location including an organization chart showing the formal structure of the organization, and other relevant background information. And then an analysis of the Chinese dairy industry's external macro environment by using the model of PEST is made. This is followed by an analysis of the Chinese dairy industry's environment by using the model of Porter's Five Forces. Finally, an internal situation of Mengniu is made by using SWOT model, and recommendations are made for the implementation of the suggestion.

Table of Contents

Executive Summary

1. Introduction

2. An Overview of Mengniu

3. Mengniu's Vision, Mission, Goal and Objectives

4.The stage of life cycle of the dairy products industry

5. PEST Analysis

5.1 Political Factors

5.2 Economic Factors

5.3 Socio-cultural Factors

5.4 Technological Factors

6. Five Forces Analysis of China's dairy Industry

6.1 Bargaining Power of Suppliers

6.2 Threat of Entry

6.2.1 Economy of Scale

6.2.2 Product Differences

6.2.3 Access to Distribution Channels

6.2.4 Expected Retaliation

6.3 Competitive Forces of Substitutes

6.4 Bargaining Power of Buyers

6.5 Rivalry among Existing Competitors

6.5.1 Numerous counterbalance competitors

6.5.2 Growth Trend of Dairy Industry

6.5.3 Exit Barriers

6.5.4 High Inventory Costs

6.6 Conclusion

7. General description of the main competitor

8. Strategic Group Map

9. SWOT Analysis

9.1 Mengniu's Strengths

9.2 Mengniu's Weaknesses

9.3 Mengniu's Opportunities

9.4 Mengniu's Threats

9.5 TOWS Matrix

10. Recommendations

11. Conclusions

List of References


1. Introduction

The purpose of this report is to provide suggestion to adjust Mengniu...