Research On Development Strategy Of XLC Tea Company

Founded in 2000,XLC Tea Company is a small-and medium-sized enterprise that engages in the business of the planting,production,and sales of tea.This thesis applied the theories and techniques of strategic management to study XLC.Through detailed analysis of the external and internal environments of XLC,this thesis aims to accurately identify the external opportunities and threats that XLC faces,as well as the internal strengths and weaknesses of the company.Finally,this thesis hopes to provide a development strategy for XLC to pave the way for the healthy and sustainable growth of the company.First,based on the actual management of the company,and guided by the theory of strategic management,this thesis applied a combination of analytical methods such as PEST analysis,competitive landscape analysis,internal and external factor evaluation matrix,and SWOT analysis to analyze the internal and external environments of XLC in detail.From the analysis above,this thesis recognized that XLC is facing good external opportunities and environments.These opportunities and environments include good political guidance,continued future economic growth,supports from industrial policies,praises for the tea culture and the healthy consumption of teas,the rise of new technologies,good ecological environments for planting,the growth of the market size,and the concentration of agricultural lands to economies of scale.Meanwhile,the company is also facing external threats including the decreased product differentiation,threats from substitutes,the increased demand of consumers,the low levels of industrialization for planting,the disordered organizational management,the shortage of tea workers,the imbalance of supply and demand,and the intense competition in the tea industry.Internally,the strengths of XCL include a compliant quality control system,an outstanding financial team,employees with good qualities,reasonable infrastructures of management,a well-established sales team,sound research and development branch,complete tea production processes,and self-owned tea park.However,XCL also has internal weaknesses including the lack of sales models,a narrow sales channel,insufficient training for workers,the lack of brand images,relatively low cultural contents,the dearth of recognition,and the scarcity of advertisement.Next,based on the results from the analysis above,this thesis used SWOT strategic analysis matrix to perform strategic portfolio analysis,revealing that XLC should use a strategic portfolio that primarily consists of SO strategy with the supporting ST strategy.The company should take advantage of its strengths and overcome external threats for the future continued and healthy development.Through these studies,this thesis proposed visions for the company: to be an elite Sichuan tea company that represents and develops the brand of Xiling Tea and strives to inherit and promote the Chinese tea culture.This thesis also proposed missions for XLC: to build a healthy tea market that is honest and has mutual benefits;to bring wealth to tea farmers and bring health to consumers;to establish an equal platform for employees where they can grow and bring vitalities to the company;to focus on the promotion and the rejuvenation of tea culture;and to create a harmonious society.This thesis provided both qualitative and quantitative strategic goals for the company.Quantitatively,by 2028,the company aims to achieve an annual production value of 50 million RMB,keep a profit margin of 14% and beyond,house around 120 employees,optimize the infrastructure of the company,raise employee benefits to an outstanding level amongst competitors in Sichuan province,and combine the tea planting areas in Mengdingshan and in the company to a total of 500 hectares self-owned,and more than 1,200 hectares for others.Qualitatively,the company aims to be a well-known tea brand in China with rich tea cultures,has independent brands,products,technologies,and finally to establish complete and scientific sales channels and models.To achieve these strategic goals,this thesis planned an overall development strategy of “vertical integration” and a competitive strategy of “Focus”.This thesis also proposed a brand strategy of “Xilingchun”.Furthermore,this thesis provides suggestions on the strategic implementation of organizational leadership,goal decomposition,resource distribution,safety precautions,and development of company culture.This thesis also developed incentivizing,modification,and emergency plans to control the proposed strategies.The results in this thesis hold important practical significance for XLC to plan and execute the company's development strategies.In addition,this thesis also serves as a great example for other small-and medium-sized tea companies.Finally,this thesis has certain theoretical significance.Because of the limited research and theoretical capability of the author,this thesis is not perfect and can be further improved.