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    Strategic Management by Sir Abdul Qadir Molvi Group Assignment

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    Danish Khalil
    The Chinese fireworks industry was traditionally made up of small family-owned workshops that produced fireworks through largely manual and labor-intensive processes. After 1949, the government established larger factories but production still relied heavily on skilled labor. The workshops were located away from each other and near water sources in rural areas to reduce safety risks from explosions. Intense competition arose from the many small private workshops, which copied popular designs to lower prices and reduce margins. The industry needs to focus on hiring skilled labor, increasing research and development, ensuring high quality materials, continuous improvement, and price regulation to boost quality and marketing strategies over the long term.

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    Strategic Management by Sir Abdul Qadir Molvi Group Assignment

    Uploaded by

    Danish Khalil
    37 views2 pages
    The Chinese fireworks industry was traditionally made up of small family-owned workshops that produced fireworks through largely manual and labor-intensive processes. After 1949, the government established larger factories but production still relied heavily on skilled labor. The workshops were located away from each other and near water sources in rural areas to reduce safety risks from explosions. Intense competition arose from the many small private workshops, which copied popular designs to lower prices and reduce margins. The industry needs to focus on hiring skilled labor, increasing research and development, ensuring high quality materials, continuous improvement, and price regulation to boost quality and marketing strategies over the long term.

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    Strategic management of a chinese fireworks industry

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    Group Assignment

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    The Chinese fireworks industry was traditionally made up of small family-owned workshops that produced fireworks through largely manual and labor-intensive processes. After 1949, the government established larger factories but production still relied heavily on skilled labor. The workshops were located away from each other and near water sources in rural areas to reduce safety risks from explosions. Intense competition arose from the many small private workshops, which copied popular designs to lower prices and reduce margins. The industry needs to focus on hiring skilled labor, increasing research and development, ensuring high quality materials, continuous improvement, and price regulation to boost quality and marketing strategies over the long term.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views2 pages

    Strategic Management by Sir Abdul Qadir Molvi Group Assignment

    Uploaded by

    Danish Khalil
    The Chinese fireworks industry was traditionally made up of small family-owned workshops that produced fireworks through largely manual and labor-intensive processes. After 1949, the government established larger factories but production still relied heavily on skilled labor. The workshops were located away from each other and near water sources in rural areas to reduce safety risks from explosions. Intense competition arose from the many small private workshops, which copied popular designs to lower prices and reduce margins. The industry needs to focus on hiring skilled labor, increasing research and development, ensuring high quality materials, continuous improvement, and price regulation to boost quality and marketing strategies over the long term.

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    © All Rights Reserved
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    Strategic Management by Sir Abdul Qadir Molvi

    Group Assignment
    Azam Khan
    Abubakar Memon
    Zain Nasir
    Muhammad Talib
    Danish Khalil - 14227
    Topic The Chinese Fireworks Industry
    Business Model
    Business model of the Chinese fireworks industry was based on small family-owned-and-operated
    workshops. It was essentially a low-tech, highly labor-intensive industry. These family owned
    workshops were replaced by the government-run factories after 1949. Government provided
    increased funds that enabled automation of some processes. However, the key processes like
    installing powder, mixing color ingredients, and putting in fuses, were still manually done by skilled
    workers. The factories themselves consisted of small workshops that were located away from each
    other, so that in case of an accident the whole factory would not suffer. Similarly, the workshops
    were usually located near a water source and in sparsely populated rural areas, to reduce the noise
    and explosion hazard. The number of small companies intensified competition. The private
    workshops were flexible and quick in responding to market demand. They did not entail much
    administrative cost. Compared to government owned or some collectively-owned factories, they did
    incur the costs of providing health care, retirement benefits and housing. They usually did not do any
    product research or design. Oblivious to intellectual property protection they would copy ant
    popular product design and sell it for much less. The resulting price drop had become a serious
    problem for the whole industry. As the profit margin kept shrinking, some workshops would hire
    cheat unskilled workers, and use cheap equipment and raw materials to cut down on cost. The
    results could be disastrous.

    Improving quality and marketing strategy


    The Chinese Fireworks industry can improve its overall quality and marketing strategy under the
    following approaches.

    Skilled labor must be hired so that they their expertise can be used to improve productivity
    and shed light on deriving new opportunities in redesigning the strategy of firms
    Research and Development can be further invested upon in order to extend the product
    line for more performance and better quality fireworks and explosive products keeping
    safety protocols in check so that the users are not harmed
    The firework industry needs to ensure that High Quality raw materials are used in the entire
    product line to minimize accidents while maintaining competitive pricing
    Continuous Improvement is essential to extend the skill set of the labor and to improve the
    overall employment standard of the industry in general.
    Price Regulation is a more stable approach to capitalize the uncertainty and reduce the
    intensive competition among rival firms which has caused firms to compromise several
    factors such as safety of product usage and quality of raw materials due to cut-throat
    competitive pricing.

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