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s sales strategy of cost control
PAGE \* MERGEFORMAT 13
s sales strategy of cost control
I. Background information on
S Corporation is China’s largest lead-acid battery industry, operating one of the enterprises, is currently a state-controlled joint-stock enterprise. S registered capital of 130,000,000 yuan, total assets of about 1.3 billion, an annual turnover of nearly 20 billion yuan, its basic organizational structure and its competitive situation faced by the market are as follows.
Under the present situation, although the company’s turnover increased year after year, the annual average increase of 25%, but the annual growth rate of profits less than 20%. A few years ago, when fierce competition in the industry saw sales increase even had not seen profit growth situation, simply because the past two years, prices of raw materials (mainly lead price of electricity has risen sharply in the first half of 2007 the average weekly increase of approximately 14%) forcing many small-scale operators out of the industry, this change makes S a substantial increase in sales of our products to their business situation began to improve. But as the industry’s strong multinational From EMKT. operators to enter the Chinese market, particularly the United States, Johnson Controls acquired the U.S. Delphi (the world’s largest auto parts manufacturer) battery business and to fully integrate its business in China This is even more is the company’s market position S constitutes a serious threat. And transnational corporations than the advanced management mode, S’s obviously at a disadvantage, especially in the company’s relatively low cost control will directly affect their future competitiveness. Therefore, to explore scientific and reasonable cost control strategies and ideas on the S’s response to the challenges of transnational corporations have strategic significance. I had worked for S the company’s marketing company, this article from the S company’s current management cost of sales start to explore
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