CASE STUDY ANALYSIS

Manganese Bronze and Geely Case Study

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1733 wordsTable of Content

Introduction2

Discussion3

Contract Background3

Brief Summary of Case Study3

What is Strategic Management?4

Strategy used for exploring other markets of the world5

Internal Environment Analysis for both companies5

External Environmental Analysis for both companies6

Overall Analysis of the Strategy used by Manganese Bronze and Geely6

Conclusion7

Recommendations7

Manganese Bronze and Geely Case Study

Introduction

Strategic management plays a vital role in the business growth especially when the organizations or companies want to expand their business all over the world or outside their operating region (Williamson, 2004, P 109-111). Strategic management is an effective tool consists of the decisions, analysis, and actions that an organization takes to achieve and ensure success in their future business. It is considered as the most effective tool all over the world that deals with planning and implementation of a strategy through the process of identification of various threads, weakness, opportunities and also strengths of an organization (Bowman, 1987, P 9-18). Strategic management sustains and creates competitive advantages for the organization during their period when they expand or grow (Ansoff, 1984, P 11-15).

In this report we are going to analyze the strategy or strategic management used by the Manganese Bronze and Geely expand their business all over the world especially in UK. The strategy used by these two companies is to take advantage of each other brands to expand their business in the new areas. Manganese Bronze is an automobile manufacturer that manufactures taxi cab in America and wants to expand their business in UK where Geely is an automobile seller and needs a brand through which they can expand their business by getting more profit (Henry, 2008, P 10-13). This case study also includes the regions in which Manganese Bronze expand their business using same strategy to make contracts with other valuable brands.

Discussion

Contract Background

The British company Manganese Bronze, which makes London black cabs, has signed a Memorandum of Understanding with a subsidiary of Chinese carmaker Geely (Zhejiang Geely) to produce these vehicles in China. The two partners plan to establish a joint venture, which will be controlled up to 37.6% Manganese Bronze. Production would start in 2008 taxis in Shanghai at a rate of 20,000 units per year. British and Chinese manufacturers invest 38.4 and 19.85 million pounds in the project (Montgomery, 2005, P 147-150). The first vehicles circulate in Asia and the second in the world. Manganese Bronze, which had tried to find a partner in China in the past, looking to expand its sales outside Britain, where he has produced more than 100,000 taxis since 1948 (about 93% of London's black cabs are made by him). Zhejiang Geely Automobile Holdings Ltd. announced that the company has decided to give recognition to subscribe Manganese Bronze new ordinary shares in this deal also. Therefore, as the largest shareholder of Manganese Bronze, Manganese Bronze shares held by Geely stood at 19.97%. It is reported that in May this year, Manganese Bronze auspicious invitation for subscription of 20,000,000 new ordinary shares of manganese bronze, and manganese bronze ...