final case zpmc_group10 by brian

Where is the Way

for Made in China

Group 10 Ma ZhiyuanJiang Yi

Luo yingying

04/10/2023 2

Strive to be excellent!

04/10/2023 3

Made in China

All over the world

cheap

low quality

cheap labor

shoes

toys

small handicraft

Trade Frictions

04/10/2023 4

2002, Golden Gate Bridge ,San Francisco

What’s going on?

ZPMC - Zhenhua Port Machinery Company

Impressive!

04/10/2023 5

shoes

toys

small handicraft

Port Machinery

efficiency

quality

High-technolog

y

Pretty much

money

Efficiency Quality High-technology

Pretty much money

Different!

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1992 2010

$1 Million< 20 Employees

> ￥ 47 Billion > 25,000 Employees > 75% Market shares

18 Years

04/10/2023 7

> 100 Ports > 70 Countries > 75% Market shares

Unbelievable!

04/10/2023 8

Why is ZPMC so awesome?

04/10/2023 9

Why is ZPMC so

awesome ?

1 Strategy

2 Strategy

3 Strategy

04/10/2023 10

1• 1992-1998• Periphery Innovation

2

3

• 1999-2006• Core Products Innovation

• 2007-Now• High Integration Innovation

Developing History

04/10/2023 11


2

3



Developing History

04/10/2023 12

Limited MoneyLimited people

?

04/10/2023 13

Open up the International Market

Firstly

International Standards

First Decision

04/10/2023 14


Lower Price (30%)

Better Service (Periphery Innovation)

Build own deliver system

Punctuality Cut down cost Flexibility


Firstly

First Decision

04/10/2023 15

Whole machine loading and unloading


Lower Price (30%)

Better Service (Periphery Innovation)

Save 1-3 months Improve efficiency


Firstly

First Decision

04/10/2023 16


Lowe Price (30%)

Better Service (External Innovation)

Strategy Management

Low cost of Human Resource

Production & customer-oriented Service Marketing Management


Firstly

First Decision

04/10/2023 17

In 1998

25% market shares

No. 1

What to do

next??

04/10/2023 18


2

3



Developing History

04/10/2023 19

Technology

Apply GPS technologyError ± 15mm

Improve Efficiency Decrease Accidences

Core Products

Innovation

Strategic Decision

Cranes with “eyes”

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Cranes lift 2 or 3 forty-ft containers simultaneously

Improve Efficiency 50% and 75%, respectively

Technology

Core Products

Innovation

Strategic Decision

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Cranes lift 2 or 3 forty-ft containers simultaneously

Qualified Technicians of Human Resource Innovation Management

Core Products

Innovation

Strategic Decision

Technology

Technology

Technology

Strategy Management

04/10/2023 22

Small com

pany

Got the first place

1992 1998 2006

?

What to do

next ?

70% MS

Challenge Yourself

again!

Market leader

25% MS0% MS

04/10/2023 23


2

3



Developing History

04/10/2023 24

Innovation

Automatic terminal systemAutomatic loading and unloading system

ECT Euromax, Holland

Improve Efficiency by 50% Bid price exceeds 5%-10%

New Business

High-Integration Innovation & New

Business

Strategic Decision

04/10/2023 25

Innovation New Business

Offshore Heavy-duty Products (hundreds billion market) Heavy-duty Steel Structure (their strength)

In 2009, Shanghai Zhenhua Heavy Industry Co., Ltd.


Business

Strategic Decision

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Innovation

New Business Offshore Heavy-duty Products Heavy-duty Steel Structure

Automatic terminal systemAutomatic loading and unloading system


Business

Strategic Decision

Innovation Management

Strategy Management

04/10/2023 27

1 Strategy

2 Strategy

3 Strategyinevitable

decision

strategy

internationalization

Why do we want to go out?

Get Growing?

More Money? Chinese ambition?

A mixture of profit-driven, development-driven and entrepreneurship

Chinese Wisdom

development-driven entrepreneurshipdevelopment-driven entrepreneurshipprofit-drivenProfit-driven

Every port in the world will see ZPMC

How can we go out?

More importantly …

Entry by trade

Entry by investment

Entry by contract

Criticism on entry by contract

Hard to protect technologies

Operation rigidity

Low return on investment

The world is becoming flat The Last Dinosaur in Heavy Industry

Entry mode

Differences between trade and investmentEntry mode

Use of resources

Relevance of local market

Trade conditions

investment

Nation sense

Industry character-

istics

1. Industry characteristics

Entry by trade

•Labor, technology and capital intensive•Highly standardized products

Entry by investment

•Labor intensive•Product variety and needs volatility

1. Industry characteristicsEntry mode


Entry by trade•Cheap and diligent labor, cheap land and facilitating finance in China•High-tech support in Shanghai

Entry by investment

•Looking for cheaper labor around the world

2. Use of resourcesEntry mode


Entry by trade

•Highly standardized port requirement•Highly integrated international market

Entry by investment

•Diverse need in different market•Highly sensitive to local need change

3. Relevance of local marketEntry mode


Entry by trade

•Self-shipping to reduce transportation cost•Low trade barrier

Entry by investment

•High transportation cost•High trade barrier

4. Trade conditionsEntry mode


Entry by trade

•High initial investment and high risk

Entry by investment

•Low initial investment and low risk

5. Investment Entry mode


Entry by trade

•CEO’s intention to offer more jobs to Chinese

Entry by investment

•Pure profit-driven

6. Nation senseEntry mode

Entry mode

Always use your

resources and

Core Competence

to find the most suitable way!

Illumination

04/10/2023 42

1 Strategy

2 Strategy

3 Strategy

What is the power behind strategies?

Who’s steering the liner of ZPMC ?

Name a few successful Chinese CEOs…

They are eclipsed by a man who has built up a much bigger empire in the world, and you just never heard about his name…

What does“59” and “76”mean to you ?

Old

老吾老，以及人之老 , 幼吾幼，以及人之幼。

---孟子

Leading style

“where there is container handling terminal, there is container produced in China.” —— Guan

AmbitiousLeading style

Always work to the midnight, even to the early morning, but be on work at 7:30 am punctually.

Leading style

Energetic

Leading style

Patriotic

Made in China, things to look up

Live in the dorm

Share office with employees

Having instant noodles

Leading style

Austere

Leading style

old

ambitious

energeticpatriotic

austere

Transformational leadership

Transactional leadership

Leading style

Transformational and transactional

2. Support and encourage followers and help them develop and grow on the jobEstablished all kinds of training schools for workers to improve their professional skills

ZPMC launched a MBA program with the cooperation with NOVA University in U.S

He encourages the employees to read.

Transformational

1. Being charismatic

Leading style


Guan has a welding team with 4000

workers, most of them are migrants. As to

how to motivate migrant workers, Guan

said that “it’s not necessary to say big

words to them. They only care about money.” The migrant workers get

wages on the hourly basis. More hours

they are working, more they gain. In this

sense, Guan is a transactional leader.

Transactional

Leading style


Paternal

Leading style

Paternal Management

take care of everything.

assign tasks to subordinates and make sure that they get the work done efficiently and by international standards.

disbelieve democracy within corporation

Chinese characteristics

Guan Tongxian Zhou Jichang

Vision ?

Commitment ?

Moral e?

Culture ?

Watch

Him

Potential ProblemChange of leader

Do U want to be the next of China?

……

Who would be the next ”Made by China” ?

04/10/2023 57

Dream

Strategy

Support

Made in China

Made by China

04/10/2023 58

Made in China

Made by China

Thank you!

final case zpmc_group10 by brian

Business

trade entry mode

investment entry mode

resources entry mode

nation sense entry mode

trade conditions entry

market leader25

market sharesno

products hundreds