.
Interviewer: At the beginning of taking over the factory, many issues were waiting for your decisions, what did you do first?
Respondent: When I took over Baoying on the first day, I held a meeting which enables management staff who were department managers or above participate. During the meeting, I asked several questions for discussion: What are the issues that Baoying currently facing related to the survival of Baoying’s? How to solve these problems? The meeting lasted a week, after discussing, the basic conclusions were almost the same as what I found in my investigation, they all believed that the problem Baoying now facing was problem of sales channels, to solve the problem of single sales channels, staff expressed their views and brought forward a lot of ways.
Interviewer: Among the provided views, have you found something useful?
Respondent: Of course, in the meeting, the manager of sales department said that,
advertising of pharmaceutical industries such as Wuhan Jianmin on television became fewer and fewer. Such a pharmaceutical enterprise has taken the initiative to advertise on TV in the last century and accessed to good business reputation, in the past two years, Wuhan Jianmin which had often seen on television has gradually disappeared, they have shifted their ads on television to the Internet. Through network marketing, they fully completed the yearly sales plan ahead of two months. What’s more, they have established business network, which has been both used in internal management and outside marketing. The manager’s words have draw the attention of all participants’, they have achieved an agreement that business network is the only way for our factory to develop in the new century. It can not only broaden our sales channels and publicity, but also save advertising costs and costs for other sales promotions.
Interviewer: So you management staff have reached consensus on the issue that business network is the inevitable way for your company's development. In addition to this strategic decision-making, what advantages do you think your factory has when competes with other factories (especially foreign companies) in international market?
Respondent: Baoying access to international markets is to give full play to comparative advantages in order to form the direct advantage of the price of products so as to structure of the superior price and performance, using it as a means of obtaining the international market’s recognition and acceptance. In the Taiwan market, there is no difference between the products of Baoying’s and other factories’ products in performance, but its price is as low as half of other products’.
Interviewer: What are specific advantages of your factory?
Respondent: The comparative advantages of our factory include labor advantage: in the composition of cost of hardware, the proportion of labor costs is the highest, the employment policy of Baoying’s is: 90% of the workforce is "imported", that is, the vast majority of the workforce of Baoying’s is from the less developed regions of China’s western region. The dual advantages of the labor force have resulted in the clear price advantage of Baoying’s products in the international market.
Interviewer: Anything else?
Respondent: Industrial chain advantage: industry chain advantages are the advantages mainly due to the division of labor within the industry to form the advantages of reducing the total cost of the final product. Dong
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