Shenzhen Filtroil: Finding Balance

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Managing People & Organisations
Assignment: Shenzhen Filtroil: Finding Balance

Word count: 4817

November 2010

Executive Summary 3

Introduction & Methodology of Research4

Part I. External and Internal Environment Analysis6

PEST Analysis6

Porter’s Five Forces 9


Part II. Analysis of the Organizational Structure And Culture 13

Organisational Structure and Culture13
Management and Leadership18
Conclusion and Suggestions 21

Bibliography & References22

Appendix 1 24
Appendix 2 25
Appendix 3 26
Appendix 4 27
Appendix 5 28
Executive Summary

Main Idea of the research is to analyze the conflict situation within Shenzhen Filtroil and to offer appropriate recommendations for the successful future management of the company and its employee team.

Analytical Tools and Techniques used in the following research: The first part of the analysis includes three different theoretical tools to examine the external and internal environment of the company: PEST analysis, a Porter’s five forces analysis, and a SWOT. All have been used to categorize and summarize the findings in the analyses. The findings gave both positive and negative answers in terms of our research question: In what way Shenzhen Filtroil could improve the situation and solve the conflict among shareholders? The second part of the analysis consists of several theoretical models which helps to determine the present company structure and culture, as well as to make a conclusion on the behaviour and leadership patterns of the company’s management.

Main Conclusions and Recommendations of the analysis are:
• The company should focus the business on the main product that would be manufactured in China and therefore to save good relations between shareholders. • Shenzhen Filtroil should completely retreat from the factory in Dongwan and use it only as a supplier. • Main shareholders should resign their ownership and operate as Shenzhen Filtroil. Introduction & Methodology of Research

Expansion into new market has the potentials to increase a company’s possibilities for the further development, productivity and profit. To be successful in foreign markets a company needs to learn about and clearly understand benefits and problems that might occur in the entrance problem. Learning these issues is the key ingredient in becoming successful on a foreign market. Any rush decisions may be a costly experience for a company.

China has long been known for its production resources in the form of low cost labour. However, with increased standard of leaving among the Chinese population and improvement in the general business environment, China has also gained attention for its great market potential. This country is especially interested in foreign investments that contain technological knowledge. Foreign companies which provide high-tech products have been favoured in terms of lower entry barriers and special tax reductions.

Filtroil, Inc. has been in business for over 25 years and is located in Richmond, USA. The company produces the highest quality by-pass filtration systems for industrial fluids. The benefits of these products help extend the life of oil, which extends the life of the machinery and its components helping organizations save money while being environmentally friendly. Filtroil, Inc. also offers several products and services geared towards total contamination control and proactive maintenance. Despite its relatively small size the growing demand for green technologies as well as manufacturing recession in the USA encouraged the company’s owners to launch manufacturing in China.

It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis both external and internal...
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