-
Strategic
Supply Chain Management
战略供应链管理
The
supply chain strategy of Xoceco Electronic
厦华电子的供应链战略
Module No: 336BSS
Name: JiZhi Liu
Student No:
3356456
1
Contents
Ⅰ
. Executive Summary -------
-------------------------------------------------3
Ⅱ
. Introduction
--------------------------------------------------
----------------3
Ⅲ
. Introduce of Xoceco
Company
-------------------------------------------3
Ⅳ
. Xoceco
Electronic Company's sales performance
--------------------4
Ⅴ
. The difficulties Xoceco
Electronic Company faces ------------------4
Ⅵ
. External
Environment Analysis
------------------------------------------5
6.1 Xoceco Electronic Company of the
overall resource
6.2 The advantages of
Xoceco Electronics Company
6.3 The
disadvantage of Xoceco Electronics
6.4
The analysis of the chance Xoceco Electronics face
Ⅶ
. Xoceco
Electronic Company's supply chain strategy
----------------9
Ⅷ
. Conclusion --------------
--------------------------------------------------
--10
Ⅸ
.
Reference-----------------------------------------
----------------------------11
2
The supply chain strategy
of Xoceco Electronic
Ⅰ
.
Executive
Summary:
Since
the
beginning
of
1990s,
rapid
development
has
taken
place
in
color
TV
manufacturing in China. From then on,
the color TV enterprises have been in a more
opener and more competitive
environment. The management of supply chain is one
of
the
most
basic
and
important
elements
of
color
TV
industry.
It
has
become
increasingly
important
in
a
changing
industrial
environment.
The
successful
management strategy of supply chain has
become an important means for color TV
industry to acquire and preserve the
competitive edge. This thesis, based on Xoceco
Electronic,
one
important
color
TV
manufacturing
enterprises,
analyzes
the
circumstances,
resources
and
conditions
of
the
Corp,
framed
in
supply
chain
management and strategic management
theory, and propose the supply chain strategy
for Xoceco Corp.
Ⅱ
.Introduction:
Xoceco
Electronic
Company
is
a
professional
enterprise
in
TV.
And
with
the
economic
boom
of China, Xoceco Electronic has
got
a huge development
in
recent
years. But it also
has a number of problems, such as service issues,
the shortage of
fund, employee payroll
problems and the discrete problem of supply of raw
materials.
By
use
quantitative
analysis
and
qualitative
analysis,
we
analyze
the
data
and
the
problems
of Xoceco Electronic and then put forward
corresponding measures to solve
these
problems.
Ⅲ
.Introduce of Xoceco
Company:
Xoceco
Electronic
Company
was
founded
in
December
February
1995,
professional enterprise in
TV, and focus on TV for twenty years. Since 2003,
the main
3
focus
of Xoceco shift to LCD TV, plasma TV and digital
high definition television,
high-end
product innovation, R & D and manufacturing. As a
domestic brand Xoceco
firstly enters
into the field of flat-panel TV business, and in
the field of technology
research
and
development,
international
operations,
the
brand
has
accumulated
a
relatively solid foundation. Xoceco has
nearly 10,000 employees worldwide, and the
headquarters has a state-level
technology center, post-doctoral workstations, and
16 R
& D platforms in the world, with
production bases at the headquarters of Xiamen and
South Africa, Europe, Central Asia.
Ⅳ
.
Xoceco Electronic Company's sales performance
In 2008 Xoceco had sold various types
of color TV in a number of 3.87 million units,
compared with growth of 17% over the
same period in 2007, the company achieved
sales revenue of 8, 425 million,
compared with descend of 66% over the same period
in the last year and flat-panel TV
sales make up roughly 73% of total revenue.
In 2009 Xoceco Electronic
Company had sold various types of color TV in a
number
of 3.4 million units, down 12%
over 2008. The sales income is 643,213 Yuan, down
23.31%
over
last
year,
of
which
flat-panel
TV
sales
make
up
roughly
77%
of
total
revenue.
Ⅴ
.The difficulties Xoceco
Electronic Company faces:
Except
the
common
difficulties
that
all
the
Chinese
color
TV
enterprises
faced,
Xoceco Electronic Company, have
encountered a number of specific problems in the
self-development process:
1.
The
company
has
loss
in
operation
for
two
consecutive
years.
The
company
suffered
a shortage of
funds,
and due to bank loans are too
high, the
financial
cost
remains high, the company's operating
leverage was negative.
2. The
competition of color TV market becomes more
intensified. Accompany with
the export
of company now declined and a shrinking share
domestically, the company
has brought
greater difficulties.
4
Ⅵ
.
Xoceco Electronic Company's External Environment
Analysis:
Chinese society, rapid
economic development
In recent years
the Chinese economy continues the rapid
development of double-digit
rates,
economic strength has been greatly enhanced, and
the living standards of people
rapidly
rise. The GDP of China has ranked second in the
world. There are more than
1.3 billion
people in China; the annual TV demand is nearly 40
million units. With a
substantial
increase in
the urban and
rural
incomes and
disposable
income, Chinese
TV
especially
Flat-panel
TVs
usher
in
a
good
development
opportunities
for
the
rapidly
growing of Chinese market (Premkumar
2001).
6.1 Xoceco Electronic Company of the
overall resource:
1. The production
base of Xoceco Electronics Company
Xoceco
Electronics
is
headquartered
in
Xiamen;
in
Xiamen
Island
has
three
production
bases.
After
2006,
Xoceco
Electronic
Company
began
investing
one
hundred
million
Yuan
of
annual
output
build
a
raw
sound
base
for
flat
panel
in
Xiang
’
an Zone.
And it will be completed and commissioned in 2008.
Also Overseas,
Xoceco
Electronic
Company
has
several
production
bases
overseas,
such
as
South
Africa,
Europe,
and
Central
Asia.
Visible,
Xoceco
Electronics
will
be
increasingly
improved
its
production
capacity
and
will
be
very
strong
to
lay
the
foundation
for
mass production in the future
(Premkumar 2001).
2. Xoceco
Electronic Company Human Resources
At
present,
Xoceco
Electronic
has
nearly
7
thousand
employees,
headquarter
has
a
state-level technology center and a
post-doctoral stations. And there are 16 global R
&
D
platforms.
According
to
a
2006
report,
in
the
end
of
2006,
the
headquarters
of
Xoceco Electronics corporate has staff
of 7,263 working people, including 574, 868 in
the field of management and 344 in the
field of technical classes and sales class and
5477 people in the other field.
3. The asset condition
5
After
the
huge
losses
for
two
consecutive
years,
by
the
end
of
2007,
Xoceco
Electronic
Company
has
total
assets
of
3,161,020,300
Yuan.
Since
2005,
the
company's asset-
liability ratio and financial costs have been
higher, and the gradual
upward
trend.
In
2005
and
2006,
the
rate
of
assets
and
liabilities
were
77.73%
and
91.51%, the financial cost is 91.83
million Yuan and 94.38 million Yuan respectively.
In
the
end
of
2007,
the
company's
balance
has
reached
103.18%.
The
asset
of
the
company has become a negative asset.
6.2 The
advantages of Xoceco Electronics Company:
Xoceco
Electronic
focuses
on
LCD
TV,
plasma
TV
and
digital
high
definition
television, high-
end product innovation, R & D and manufacturing
for twenty years.
Accompany
with
the
accumulation
of
management
experience
and
technology
in
China's
color
TV
industry
over
the
years,
the
Xoceco
Electronic
still
have
certain
advantages, mainly reflected in:
1. The technology
advantages of TV
Xoceco
Electronics has the advantage relative to domestic
firms in the field of Digital
HD, LCD
TV, plasma TV above.
2. The
upstream supply and financial support from the
major shareholder of company
With the
reorganization of Xoceco Electronic by Chunghwa
Picture Tubes, it creates
a domestic
color TV enterprises combination with the upstream
supply chain for the
first
time.
So
Xoceco
Electronics
has
chance
to
enhance
the
competitiveness
and
continue to become
bigger and stronger to lay a solid foundation.
Chunghwa Picture
Tubes, which is a
listed holding company, is currently ranked third
in Taiwan and the
world's fifth LCD
panel plant.
3. Xoceco
Electronic Company in domestic and international
market has established
some brand
awareness
After
twenty
years
of
hard
work,
especially
in
the
digital
high-definition
TV,
flat
panel
TVs
and
other
fields,
Xoceco
Electronic
Company
not
only
in
the
country
obtains
a
higher
visibility
and
recognition
in
the
international
community
but
also
6