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The Chinese Fireworks Industry

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The Chinese Fireworks Industry
Case Title: The Chinese Fireworks Industry

Executive Summary

An organization can only improve its functioning, if it makes itself aware of its weaknesses and then acts to correct those deficiencies. The purpose of this case is to help Jerry Yu asses how attractive the fireworks industry is and to aid in his decision-makings of investment. This case is also conducted to diagnose the key issues that the company needs to address and to suggest alternative courses of action or give recommendations.

Jerry Yu is challenged to decide whether it is worthwhile to invest in the fireworks industry considering the threats it is facing and the weaknesses of the industry.

There are only two alternative courses of action. These are to invest or not to invest in the fireworks industry.

The tools that helped me analyze this case and led me to certain recommendations are the PEST Analysis, the Internal Factor Evaluation (IFE) Matrix, the External Factor Evaluation (EFE) Matrix, the Internal-External Matrix, and the Threats-Opportunities-Weaknesses-Strengths Matrix.

The fireworks industry has potential. Jerry Yu may invest in this industry. He just has to make sure that the factory he is investing in would use high quality raw materials in producing the fireworks to lessen the possibility of accidents and to pass the standards and regulations for safety consideration in other countries, thus, improving the exportation of Chinese fireworks. Skilled factory workers should be hired and abide by strict safety measures. The company should also invest in high technology equipments and in research and development in order to cope up with and to exceed the improvements in the safety and style of the fireworks that are being undertaken by competitors. The workers should undergo continuous training programs in order to incorporate in the products the innovations that the research and development section comes up with. The company should also ask the government to



References: http://www.netmba.com/strategy/pest/ http://www.zianet.com/parrotfan/Projimo/Evaluation.htm http://www.gwu.edu/~crn40013/strataud/MSDW.htm David, Fred R. Strategic Management, 8th Ed. New Jersey 2007

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