Shui on Group - Corporation Strategy

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Shui On Group

Introduction
The company was formed by Vincent Lo in 1971 and the company was launched hotel business in Shanghai by 1984 and with a proven track record in large-scale development of Hotels, Apartment or residential projects over the world and focus in China’s land development project since 1985. The company become listed company in 1997 and was grouped under SOCAM Development Limited (00983.HK).

Shui On Group’s business structure is composed:
* Shui On Construction and Materials Limited (SOCAM), Principally engaged in property, cement and construction. * Shui On Land Limited (SOL), Principally engaged in property development in China, focusing on large-scale, mixed-use city-core development projects and integrated residential development projects. * Shui On Holding Limited (SOH), Principally engaged in property investment and management.

The corporate mission statement states “achievements of organization are result of combined effects of all individuals in the organization working toward common objectives. It is therefore very important that everyone in Shui On is committed to these objectives to ensure their accomplishment.”

External Environment analyses key variables for the company success

As the China's economy market to be more liberalized, the economic development led to increase the urbanization and higher demand for infrastructural facilities like public utilities, roads, public transport, commercial and residential buildings. Many construction, construction land investment, city development, property development and management companies are gained vast business opportunities, thus bring up construction industry accelerated growth in China.

As for the following external environment influences, Shui On is potentially to be the leader in real estate, construction and construction materials in China with international recognition.

Political:
* Political stability in China, which advantages for long-term development planning. * With local listing company Yida Group as a business partner in China * When dealing with the government, takes a great deal of political sensitivity

Economic:
* Fragmented markets in developing markets facilitate acquisition * Revaluation of China currency benefits to Shui On Group’s stock value * Booming economy in China, it driven and promote resident's intention and ability of consumption

Social:
* Chinese farmers sell their farm land to earn fast money * By the culture of capitalism, people would like to have their own properties * Aspire higher standard of lifestyle

Technological:
* Speed up the lead-time of construction
* Different changes in the architectural design can be introduced into the market (the real draft) * E-sourcing construction materials for saving negotiation and transportation cost * Creating a tenant mix, establishment of our own hotels, clubs, winery and gift shop can be easier introduced as evidenced in Shanghai

Environmental:
* In recent decades, China has suffered severe environmental degradation and pollution. Shui On concerns environment protection. * Many undeveloped zones to be developed in China, especially in straggly zone like western-China. There is natural environment and rich of resources.

Legal:
* China work force laws are differing from province to province.

Products, services, culture environment, customers and markets affected corporate strategy in future growth. Products:
The goal is long-term holding of investment properties and strive for steady rental growth with stable customer such as Governments, sizable corporate for rental in Hotel, apartments or shops. During the design phase for properties, the corporate should gather and consider the suggestion, comment or market trend to the shopping mall or facilities nearby on comfort client’s first-sight image.

Customers:
1) HK & China governments (strategic customer)...
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