Business Strategy Of The Russian Branch Of FAW Group

The Russian branch office of FAW is responsible for the importation of vehicles,development and maintenance of sales, after-sales, service networks and managementto agents. The main products are tractors and dump trucks of J5P, J6series. Comparedwith the domestic auto companies in Russia, FAW Group offices in Russia has acertain competitiveness in the industry. However, there are also many deficiencies.This paper aims to study The Russian branch office of FAW business strategy,business at this stage to identify the existence of deficiencies and proposecorresponding solutions.Thesis Chapter1briefly introduces the research background, purpose, meaningand ideas. Thesis Chapter1briefly introduces the research background, purpose,meaning and ideas.FAW Group is the eldest son of China’s auto industry, the development has beenbecoming a medium, heavy, light, one of China’s largest automotive conglomeratemicro, passenger-round development of the product structure and system capabilities.With the development of the product of globalization and corporate globalization,FAW Group research and development efforts, and actively explore overseas markets.Russia is a key market for the Group’s strategy. The Russian office of FAW Group isestablished in2007. This paper analyzes the current situation of the Russian branch ofthe FAW Group operations and problems, study countermeasures and develop newbusiness strategy.Thesis Chapter2analyzes the current situation of the Russian branch of the FAWGroup business, and analyzes the existing problems.Through analysis to identify the existence of the firm following questions: such enterprises lack awareness of the appropriate strategy; product quality to be improved;product margins are thin; marketing network and after-sales service systemconstruction to be improved; on the market, dealers, service providers and customerinformation relatively weak grasp, weakening the Bank penetration; operating risks;and low operating efficiency. These problems are obvious and the key factors greatlyinfluence the development of enterprises. Causes that produce more problems: theirown strength is not strong; R&D capability is weak, backward technology; lack ofhigh value-added components of independent products; the company’s inception lackof long-term market strategy.Thesis Chapter3of the Russian branch of the FAW Group’s operatingenvironment is analyzed.Analysis of the macro-environment, including political, economic, social andtechnological factors; by EFE matrix, IFE matrix for the company’s externalenvironment and internal environment analysis; identify their own strengths,weaknesses, opportunities and threats, by the method of SWOT analysis Thecompany has made a full range of operating conditions of the analysis, developmentof corporate strategy SO, WO strategy, ST strategy and WT strategy.Thesis Chapter4, according to the last chapter SWOT analysis concluded,together actual operating conditions for the Russian branch of the FAW Group madethe following business objectives: to improve the authorized agent and the end-userloyalty; product technology improvements; gaining market share, continued growth,improve treatment welfare workers, focus on staff development and enhance teamleadership. Developed on the basis of the business objectives of the Russian branch ofthe FAW Group’s business strategy: to seize market share; to achieve localization ofproduction; the establishment of strategic alliances to improve the soft power;strengthen enterprise risk management.For the above business strategy, the Russian branch of the FAW Group safeguards business strategy implemented as follows: to strengthen the company’sbrand-building; to product quality as the core competitiveness; comprehensive servicesystem; in accordance with Russian law, good vehicle manuals and other technicaldocuments Preparations; strengthen communication, lessons learned; strengthencorporate culture.