Operations Management LongXi Manufacturing Essay

Operations Management LongXi Manufacturing - Essay Example LongXi under the management of Zhang Lin is faced with important problems in line with product quality and its team. LongXi is faced with this significant problem that specifically tries to hinder its long-term goal for the future. It is important to address this problem so that it will not hinder its potential to create high standard quality management in the future. LongXi and its quality management problem absolutely encompassed the issue of how the company should obtain its competitive advantage. In the midst of on-going competition, LongXi remarkably needs to compete with significant quality in its product offerings. The issue is not just on quality improvement of its offerings and restructuring its quality improvement team, but the problem itself boils down to how LongXi should survive in the midst of highly competitive environment with too many choices for the customers to choose from. How then should LongXi differentiate its product offerings even if it has significant qualit y improvement is the most specific issue aside from the issue of quality improvement management. Situation Analysis LongXi’s position in the Chinese small diesel engine market LongXi’s position in the Chinese small diesel engine market is heading to international scope. As the demand for product offerings within diesel engine industry increases as far as the Chinese economic reform is concerned, competition increases within the international business setting. China is competitive enough to go for low-cost production which gives the ability of the Chinese market to have at least around 25% less cost in production compared to Japan. However, prior to this significant market trend, LongXi has been creating a major market share considering that small diesel engine market particularly in the agriculture and machinery sector was pushed to pursue even more due to Chinese economic reform. This economic reform paved way for LongXi to promote product offerings that cater the nee ds and increasing demand in the market. However, competition within its industry has become too intense as the demand increases. As a result, there is a need to augment production. The capacity of production needs to be improved as the demand continues to reach an upward spiraling growth. However, LongXi is willing to invest in new improved technology to ensure quality and stretch its production. It is not going to help on its part to rely on other organizations producing duo-gear shaft (DGS) because there is just limited number of them and are already having their production over-stretched. Thus, in house management is necessary. As a result to this, LongXi has remarkable market share in China as it overstretched production. Furthermore, as the country continues to lead economically, there is a good chance to expose produced product offerings of the said company into the world. This particularly is a promising output considering that LongXi is aiming for low-cost production with hi gh standard quality. As a result, there is going to be a low-cost price of its product offerings at a reasonably high market demand. This ensures high revenue and eventually obtaining LongXi’s corporate objectives. In Comparison with Chanchai Changchai is LongXi’s ultimate competitor in China. In Appendix Table 7, LongXi and Changchai are compared based on production volume by product, revenues, proportion of export sales, profits, gross margin per unit, extent of vertical integration, external partnerships, ISO 9000 certification, and technology investment. In 1996, LongXi was able to target production of multi-cylinder diesel engines which is higher than Changchai. This is a remarkable figure and it is in this product offering that LongXi is creating a significant competitive advantage considering that there is a great market opportunity for multi-cylinder diesel engines not just in China but in the international market. This is due to the fact that the said product offering has remarkable and practical applications. However, it

Entrepreneurship Assignment Question 1 (2000 words) Breaking up the Essay

Entrepreneurship Assignment Question 1 (2000 words) Breaking up the market into segments by the Entrepreneur can be the - Essay Example Table of Contents Executive Summary 2 Introduction 4 Literature Review 5 Critical Analysis 7 Conclusion 10 Reference List 11 Introduction The early definitions of entrepreneurship given by economist are seen to emphasize on risk, ownership, supply of financial capital and co-ordination of various factors. However, entrepreneurship is seen as the efforts made by an individual that goes against every odds towards converting a vision into successful business enterprise. Entrepreneurship is the search for some discontinuous opportunities that are involved towards creation of an organization or sub organization in the expectation of creating value for the participants. Entrepreneur is a person or a group of individuals who identifies opportunities, collects necessary resources and makes effort towards the performance of the organization (Gungaphul and Boolaky, 2009). In order to make a business venture successful the entrepreneurs need to choose a proper target market (Crane, 2007). Targe t market is defined as the specific group of customers towards whom the marketing effort created by the firm is directed. It is selected as a part from the whole market. Defining the target market correctly is a critical element in creating a successful marketing strategy. It may be a disaster if marketing plans are made to cater to wrong target customers. Employees and manager are seen to focus on providing value to the well-defined segment of target customers (Gitman and McDaniel, 2008). Entrepreneurs with exciting ideas and innovative product and services often forget about focusing towards right customers. This study focuses on critical analysis of the importance of choosing right target market for success of entrepreneurs. Literature Review Defining target market Business firms and entrepreneurs tempted to describe the target in the broadest and best possible way in which they look for including a large set of customers who can be huge potentials in using the services and produ cts. By doing this they get a huge comfort by the sense that they have a huge market to exploit. But in reality this is seen to provide very little genuine information based on which business decisions will be made. This insists the need for identifying a particular market segment that would provide a more exact description of distinct and meaningful components of the overall market which in turn helps in identification of target market of the business based on certain specific characteristics (Abrams, 2003). However, while defining the target market certain criteria needs to be met, like it needs to be definable which signifies that specific characteristics should be identified based on the requirement and needs of the customers that are in common. It has to be meaningful, which signifies that the characteristic should be as such that it is related to the decision of purchase made by the clients. The target market needs to be sizable which signifies that the target market needs to be large enough so that it can help the profitably sustain in the market (Barringer and Ireland, 2008). The target market should be reachable which signifies that the size and definition should be as such