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Environmental Changes: Opportunities and Threats - A Case Study in a JV Company Author Company name Acknowledgment With the valuable advice given by Professor XX from XXXXXX during the four days residential training course in X and great support from AAA AAAA Co. Ltd., Beijing (AAAAA) such as Mr. XXXXX as a mentor, this assignment was completed in order to improve the business performance of AAAAA. The author hereby would like to take this opportunity to thank all who have been providing supports during and after the preparation of this assignment. Terms of reference This assignment is associated with course module of Business Environment. The title was given by XXXXX. The subtitle was chosen by the author and approved by Professor XXX. The key tasks involved in this assignment are: · · To describe some of the current environmental changes affecting AAAAA; · · To identify the emerging opportunities and threats that may affect the business performance of AAAAA; · · To discuss the options open to AAAAA in order to benefit from the opportunities and avoid the environmental threats; · · To submit the suggestions and recommendations concerning the most appropriate course of action to AAAAA. Table of Contents 1. INTRODUCTION 2 2. THE CURRENT ENVIRONMENTAL CHANGES AFFECTING AAAAA 3 2.1. THE LOCAL ENVIRONMENT 3 2.2. THE COMPETITIVE ENVIRONMENT 3 2.3. THE NATIONAL ENVIRONMENT 4 2.3.1. Political and Legal 4 2.3.2. Economic and Social-cultural 4 2.3.3. Technological and Ecological 4 2.4. THE INTERNATIONAL ENVIRONMENT 4 3. SOME EMERGING OPPORTUNITIES. 5 3.1. THE INCREASE OF MARKET DEMAND 5 3.2. THE INCREASE OF THE REQUIREMENT OF ENVIRONMENTAL PROTECTION 5 4. SOME THREATS 6 4.1. THE INCREASE OF COMPETITIVE POWER OF COMPETITORS 6 4.1.1. Technology 6 4.1.2. Price 6 4.1.3. Advertisement 6 4.2. THE INTENSIFICATION OF COMPETITION ON TALENTS 6 4.3. THE CHANGE OF OPERATIONAL WAYS OF SOES 6 4.4. THE EXPENSIVENESS OF R&D COST 7 5. THE ANALYSIS OF IMPACTS AND OPTIONS 8 5.1. THE IDENTIFICATION OF STRONGEST COMPETITOR 8 5.2. IMPACT ANALYSIS AND OPTIONS 8 5.2.1. In the field of medium voltage product 8 5.2.2. In the field of high voltage product 9 6. CONCLUSIONS AND RECOMMENDATIONS 10 7. REFERENCE 11 TABLE 1: ANALYSIS IN THE FIELD OF MEDIUM VOLTAGE PRODUCT 8 TABLE 2: ANALYSIS IN THE FIELD OF HIGH VOLTAGE PRODUCT 8 1. 1. Introduction AAAAA is a Joint Venture between CCC and VVVV (China) Investments Ltd.. The company received its Business License on December 8, 1995 for the manufacture of AAAA for 110 and 220KV. The Business License was extended to include medium voltage equipment on April 23, 1997. The aim of AAAAA is to become a major supplier of advanced products and excellent service to Chinese industry and utilities, and to meet China's growing demand for high quality transmission and distribution of power supply. AAAAA owned 120 employee and was organized as a functional structure in which there were Production, Quality, Technical, Sales, Marketing, HR, Financial and Administration departments. As a growing company, AAAAA’s business performance was the best in all of AAA’s JV in Beijing.