A study by the group of KIU Skardu campus students on (Happy Christmas Company China) HCC China. SWOT analysis and internal and external analysis.

2. Karakoram International UniversityKarakoram International University
Skardu CampusSkardu Campus
SubjectSubject
““Marketing Management”Marketing Management”
Present toPresent to
““Mr. Kashif Ali Shigri”Mr. Kashif Ali Shigri”

3. Group membersGroup members
• Ammarah GulAmmarah Gul
• Syed Sakhawat MusaviSyed Sakhawat Musavi
• Wazir AnjumWazir Anjum
• Muhammad WaseemMuhammad Waseem
• Mehdi AliMehdi Ali

4. IntroductionIntroduction
• Objective of studyObjective of study
• CrisisCrisis
Presented byPresented by
““M.Waseem”M.Waseem”

5. Happy ChristmasHappy Christmas
CompanyCompany

6. SituatedSituated
 International Trade City in YiwuInternational Trade City in Yiwu
FOUNDERFOUNDER
HuangHuang

7. In our study we are going to reveal theIn our study we are going to reveal the
environmental analysis in order to over comeenvironmental analysis in order to over come
the leading crisis from the Global Economicthe leading crisis from the Global Economic
issues.issues.
Objective of a studyObjective of a study

8. About HCCAbout HCC
• It is situated in an international trade city inIt is situated in an international trade city in
YIWU.YIWU.
• Its fonder is HUANG.Its fonder is HUANG.
• HCC is the manufacturer as well as wholesalerHCC is the manufacturer as well as wholesaler
of its own product.of its own product.
• It is an international well-known producer withIt is an international well-known producer with
elevated value product.elevated value product.
• It only has a product line of Christmas items.It only has a product line of Christmas items.
• Its targeted markets are America and EuropeIts targeted markets are America and Europe
• It mainly deals in fiber optic trees, baublesIt mainly deals in fiber optic trees, baubles

9. Current Crisis of HCCCurrent Crisis of HCC
• Global recessionGlobal recession
• The sale of the company decreased.The sale of the company decreased.
• 60 million to 35 million Yuan.60 million to 35 million Yuan.
• Variation in buying behaviorVariation in buying behavior
• The hesitance of European and AmericanThe hesitance of European and American
buyers.buyers.

10. Macro-environmentMacro-environment
analysisanalysis

11. Macro-Environment AnalysisMacro-Environment Analysis
• PoliticalPolitical
• EnvironmentalEnvironmental
• EconomicalEconomical
• SocialSocial
• TechnologicalTechnological
Presented byPresented by
““Ammarah Gul”Ammarah Gul”

12. PoliticalPolitical
• China has greatly suffers from tradeChina has greatly suffers from trade
protectionismprotectionism
• Global financial crisisGlobal financial crisis
• Appreciation in YuanAppreciation in Yuan
• Enhances labor wagesEnhances labor wages
• High prices of goodsHigh prices of goods
• ““BUY AMERICA “ schemeBUY AMERICA “ scheme
• Defame of Chinese productDefame of Chinese product
• India banned on the toys of chinaIndia banned on the toys of china

13. EnvironmentalEnvironmental
• Product cause health hazard to ChildsProduct cause health hazard to Childs
• There is no Eco-friendly productThere is no Eco-friendly product
• No alternate of plasticNo alternate of plastic
• No chance for green marketingNo chance for green marketing

14. EconomicalEconomical
• China has been named as "Rising Dragon”China has been named as "Rising Dragon”
• China's economy is mounting at high and steadyChina's economy is mounting at high and steady
raterate
• High prices of raw material like petroleum,High prices of raw material like petroleum,
plastics and steel.plastics and steel.
• Increases exporting costIncreases exporting cost
• Weakening the strength of china's manufacturingWeakening the strength of china's manufacturing
industry.industry.

15. SocialSocial
• Big countryBig country
• high population density (1.3 billion people)high population density (1.3 billion people)
• It gives a high potential lucrative growth marketIt gives a high potential lucrative growth market
• Opportunity for marketersOpportunity for marketers
• Chinese government passed "One-Child Policy”Chinese government passed "One-Child Policy”

16. TechnologicalTechnological
• The reputation of "Made in China”The reputation of "Made in China”
• HCC suffer hard due to such bad reputation ofHCC suffer hard due to such bad reputation of
other companiesother companies
• HCC has old technologyHCC has old technology
• Cost of product increase because of oldCost of product increase because of old
TechnologyTechnology
• E-CommerceE-Commerce
• Its really need to give injection of confidenceIts really need to give injection of confidence
to the worldto the world

17. Micro-environment analysisMicro-environment analysis

18. Micro-Environment AnalysisMicro-Environment Analysis
• CustomersCustomers
• DistributorsDistributors
• CompetitorsCompetitors
• SuppliersSuppliers
Presented byPresented by
““Syed Sakhawat Musavi”Syed Sakhawat Musavi”

19. CustomersCustomers
• HCC was mainly focusing on the EuropeanHCC was mainly focusing on the European
and North American customersand North American customers
• It is the time to change this viewIt is the time to change this view
• Need to focus domestic customerNeed to focus domestic customer
• Japanese & Russian people also haveJapanese & Russian people also have
increasing consuming power on festivalsincreasing consuming power on festivals

20. DistributorsDistributors
• HCC has its own distributing channelHCC has its own distributing channel
• Reduce the thread of profit marginReduce the thread of profit margin
• Need to established outlets at overseasNeed to established outlets at overseas
• Need to introduce E-CommerceNeed to introduce E-Commerce
• Products will be available for customer at theirProducts will be available for customer at their
door stepdoor step

21. CompetitorsCompetitors
• Local competitors that have high strategiesLocal competitors that have high strategies
regarding marketing of productsregarding marketing of products
• Supply their products to the marketSupply their products to the market
approximately 2 month ago.approximately 2 month ago.
• In order to capture maximum market shareIn order to capture maximum market share
• Overseas competitor have dominantOverseas competitor have dominant
competitive advantagecompetitive advantage
• low labor cost in Indialow labor cost in India
• May be strong competitor in futureMay be strong competitor in future

22. SupplierSupplier
• Increase in cost of raw materials, Petroleum,Increase in cost of raw materials, Petroleum,
and other factors of productionand other factors of production
• HCC either reduce their profit margin or saleHCC either reduce their profit margin or sale
their products on high price.their products on high price.
• Weakening their financial strength as well asWeakening their financial strength as well as
lose numerous number of customerslose numerous number of customers

23. Internal analysisInternal analysis

24. Internal AnalysisInternal Analysis
• Assumptions onAssumptions on
• MenMen
• MoneyMoney
• MachineryMachinery
• MaterialMaterial
• ManagementManagement
Presented byPresented by
““Mehdi Ali Haideri”Mehdi Ali Haideri”

25. MenMen
• Need to increase number of laborNeed to increase number of labor
• Trained themTrained them
• Motivate through compensationMotivate through compensation
• Develop strategies to retain competentDevelop strategies to retain competent
employeeemployee
• Equal employment opportunityEqual employment opportunity
• Strong employees competitive advantageStrong employees competitive advantage

26. MoneyMoney
• Borrowed loans from financial institutionsBorrowed loans from financial institutions
• Maximize their share capitalMaximize their share capital
• Profit Re-energizingProfit Re-energizing
• Short term loans from banksShort term loans from banks

27. MachineryMachinery
• Need to improve latest technologyNeed to improve latest technology
• Manufacture material with the use of latestManufacture material with the use of latest
technology.technology.
• Result in low cost of productionResult in low cost of production
• Effective and efficient utilization of resources.Effective and efficient utilization of resources.

28. MaterialMaterial
• Need materials in bulk amountNeed materials in bulk amount
• Result in discount receivedResult in discount received
• Cost minimizationCost minimization
• Control to reduce wastages of raw materialsControl to reduce wastages of raw materials

29. ManagementManagement
• Developed new techniques to enhance theDeveloped new techniques to enhance the
qualityquality
• Developed new strategies to boost up theDeveloped new strategies to boost up the
market sharesmarket shares
• Open marketing offices in overseasOpen marketing offices in overseas
• Customer oriented productsCustomer oriented products
• Effective communication with in as well as outEffective communication with in as well as out
side of the organization.side of the organization.

30. Internal AnalysisInternal Analysis
SWOT AnalysisSWOT Analysis
• StrengthsStrengths
• WeaknessesWeaknesses
• OpportunitiesOpportunities
• ThreatsThreats
Presented byPresented by
““Wazir Muhammad Anjum”Wazir Muhammad Anjum”

31. SWOT ANALYSISSWOT ANALYSIS
STRENGTHSTRENGTH
• LocationLocation
• Quality productsQuality products
• Religious factorReligious factor
• Reputation of companyReputation of company
• Remarkable export historyRemarkable export history
• Dedicated employeeDedicated employee
• Effective management teamEffective management team

32. WeaknessWeakness
• Low human capitalLow human capital
• High labor costHigh labor cost
• High production costHigh production cost
• Increasing exporting costIncreasing exporting cost
• No Eco-friend substitute of raw materialNo Eco-friend substitute of raw material
• Company name; HCCCompany name; HCC
• Seasonal businessSeasonal business

33. OpportunityOpportunity
• Great domestic consumer marketGreat domestic consumer market
• One child policyOne child policy
• Growing population of chinaGrowing population of china
• Growing human needs to satisfyGrowing human needs to satisfy
• Targeting other festivalsTargeting other festivals
• High acceptance and welcoming of foreignHigh acceptance and welcoming of foreign
culture in Chinaculture in China
• Potential foreign market other than USA & EUPotential foreign market other than USA & EU

34. ThreatThreat
• Lack of currency exchange-rate mechanism.Lack of currency exchange-rate mechanism.
• Other companies repo like “Made in China”Other companies repo like “Made in China”
• American Policies regarding importAmerican Policies regarding import
• Competitors with great competitiveCompetitors with great competitive
advantagesadvantages
• Low labor cost in other countriesLow labor cost in other countries
• Increasing number of companies focusingIncreasing number of companies focusing
ChristmasChristmas

35. ReferencesReferences
http:A report card for China's environment Jonathan Wattshttp:A report card for China's environment Jonathan Watts
Environment guardian.co.uk.htmEnvironment guardian.co.uk.htm
http:China Social Issues & Conditions.htmhttp:China Social Issues & Conditions.htm

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