Preview

The Chinese Fireworks Industry

Better Essays
Open Document
Open Document
1397 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Chinese Fireworks Industry
The Chinese Fireworks Industry Liuyang, a city in Hunan Province in China, is known as “the home of firecrackers and fireworks”. The fireworks making in Liuyang has a long history and tradition in China, and enjoys a high reputation in the domestic market. It was also the top fireworks exporter in the world, covering 60% of the global production. However, the fireworks market in China faced an intensified competition and several legal restrictions. Jerry Yu, who was running a small family-owned chain of gift stores in New York, was asked to invest in a fireworks factory. He has management experience and global insight with an MBA, but he is challenged to decide whether it is worthwhile to invest in it considering the threats it is facing and the weaknesses of the industry. As far as I am concerned, although the downward trend of fireworks consumption (see Exhibit 1) made the whole firework industry seem like a sunset industry, there are still some opportunities for investing this industry and make profit out of it.

PEST Analysis
Political Factors In the domestic market, local governments have different regulations regarding fireworks consumption. By 1998, one-third of the cities in China had completely banned the use of firecrackers and fireworks. Another one-third only allowed fireworks in designated places. However, in the mid 2000s, several cities eased restrictions on fireworks. In the meantime, the domestic market still lacks pricing regulation and intellectual property protection, which caused cutthroat price competition and discretionary copying of popular design. Fortunately, Liuyang Firecrackers and Fireworks Industry Department implemented an offensive strategy to revive fireworks industry. In the foreign market, many countries made restrictive and complex regulations on fireworks. Although fireworks from China were rich in variety and low in price, they had a low reputation in quality control, packaging and timing control. Nevertheless,

You May Also Find These Documents Helpful

  • Satisfactory Essays

    1.) Where and when were fireworks first used? China About 1000 Years Ago. 2.)…

    • 52 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    One the fourth of July every year there are fireworks, that light your imagination and just give you that “WOW” affect. Did you know that those fireworks are made from gunpowder? In the 12th century the Chinese made…

    • 164 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    BUS 311 Final Paper

    • 1826 Words
    • 5 Pages

    References: Consumer Products Safety Commission (2001) Fireworks Business Guidance Retrieved on August 24, 2014 from https://www.cpsc.gov/en/Business--Manufacturing/Business-Education/Business-Guidance/Fireworks/…

    • 1826 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    The Bombs Bursting in Air

    • 669 Words
    • 3 Pages

    The history of fireworks goes back to China thousands of years before Christ. The first firecrackers were actually chunks of green bamboo. When there was no available wood, these chunks were used as fuel in a fire and would explode soon after heating up. These primitive explosives then became an important part of Chinese culture and were used in many different public displays. Although they were basically just ways of having fun, these explosives soon developed into more advanced weapons and explosives.…

    • 669 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Nontariff barries

    • 1168 Words
    • 5 Pages

    Brazil banned imports of Xia goods from China because there was allegations and unconfirmed speculation pertaining to China’s use of hazardous materials (for example, lead paint and potentially carcinogenic plastic and rubbers) to manufacture toys cheaply, which sparked consumer panic around the globe. The imports of Xia goods were banned until the test was performed to guarantee that these goods do not possess any health risk. The Chinese government completely refuted this claim and fearing that other country might follow the similar pattern, took the matter before WTO for resolution.…

    • 1168 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Acme Fireworks

    • 2332 Words
    • 6 Pages

    There is much to consider when expanding a business. How will you make, market, and distribute your product. Are you willing to take full liability for your product and understanding the legalities of what happens if your product is defective? Once that has been established, it’s important to make sure that your business dealings are in order. The strength of the contract and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of business entity the company will select especially if the company starts out small and looks to expand. Which entity will best serve the growth of the company such as Acme Fireworks?…

    • 2332 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Acme Fireworks Prospectus

    • 1831 Words
    • 6 Pages

    In anticipation of increased business, the owner of Acme Fireworks is in need of some information. This prospectus is going to inform the owner as to:…

    • 1831 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Despite the government’s best efforts to accurately classify fireworks, consumers still manage to get a hold of illegal fireworks without proper licensing and remain unaware of the potential dangers. In the United States, fireworks are classified as either consumer or display fireworks based upon the amount of pyrotechnic composition an item contains (“Firework”). Even with certain restrictions on fireworks, thousands of accidents occur each year. It is no doubt that fireworks are potentially dangerous for the person operating them and for bystanders alike, as they may even land on flammable material and cause a fire. As a result, a general understanding of firework composition and technology is almost necessary to ensure that a disaster is prevented.…

    • 301 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Few substances in history have had as profound an effect on human history as gunpowder... and its discovery was an accident! Ancient alchemists in China spent centuries trying to discover an elixir of life that would render the user immortal. One important ingredient in many of the failed elixirs was saltpetre, also known as potassium nitrate. Many western history books over the years have stated that the Chinese used this discovery only for fireworks, but that is not true. Song Dynasty military forces as early as 904 A.D. used gunpowder devices against their primary enemy, the Mongols. And, although the Chinese did use gunpowder in fireworks for religious purposes, they also used gunpowder in cannons, rockets, and guns. Other Song military applications of gunpowder included primitive hand grenades, poisonous gas shells, flame throwers and land mines.…

    • 1331 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The history of fireworks goes back to the Chinese Han dynasty, estimated around 200 B.C. It is first believed that original firework was a ‘firecracker’ that was made of chunks of green bamboo, which someone may have thrown onto a fire when wood became low. The rods hissed and after a while unexpectedly exploded. This phenomenon led to human fascination to recreate this experiment which ultimate led to the development of gun powder. Roger Bacon, a Franciscan monk, became one of the first Europeans to study gunpowder as well as publish it. He revealed that saltpeter was the force behind the alarming sound of firecrackers and discovered a way of purifying the natural mineral. His favorite material to harvest was charcoal, from which he had taken from the remains of a willow tree. As his publication grew, societies adopted fireworks into future traditions. Around the 1600s, settlers brought fireworks over to the Americas, where they continued to be used to celebrate special occasions. The very first 4th of July celebration was in 1777, only one year after the signing of the Declaration of Independence.…

    • 545 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Acme Fireworks Company is a fireworks retailer who sells fireworks, puts on ground displays and large aerial fireworks. As the manager, it is my job to determine if the inquiries from the large businesses can be fulfilled and if the contracts with these businesses are enforceable. In order to manufacture the increased amount of fireworks needed, the owner will be required to increase the workforce and also be able to adjust when the work volume decreases. It is also my job to choose which business entity will best suit Acme Fireworks. Fireworks are very dangerous yet beautiful. In this paper, I will analyze the…

    • 1547 Words
    • 7 Pages
    Better Essays
  • Better Essays

    As a company grows it may become necessary to change the businesses’ entity and the way in which it conducts business. ACME Fireworks has received inquiries from several large retailers that will enable the business to expand. In order to accommodate this expansion, ACME must consider hiring more employees. The owner is concerned about his personal liability should the company fall short of funds. In order to determine which entity best suits the company’s needs, we must first review all the risks and liabilities associated with production, sale, transport and storage of fireworks.…

    • 2566 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Many cities across the United States have interesting nicknames given to them by their inhabitants, based on what makes those specific cities special. New Castle, Pennsylvania, the county seat, is known as “The Fireworks Capital of America.” This is because Lawrence County was once the largest producer of fireworks in the world, thanks to two large fireworks companies that began here. In 1893, Antonio Zambelli travelled from Italy to Western Pennsylvania to start his business. He quickly became successful, and today, Zambelli Fireworks Internationale is still family owned, and continues to produce fireworks worldwide. In 1922, Constantino Vitale also ventured from Italy, and settled in New Castle to start his fireworks business “Pyrotechnico.”…

    • 279 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Fireworks

    • 850 Words
    • 4 Pages

    In this chapter the monster after being rejected by the old man De Lacy and his son Felix; the monster swear revenge on all human beings and swears to find his master (Victor). During this journey the monster tries to only travel in night and goes through the woods. He know where he is going but does not know where he is and what cities he will be going through. The monster in his travels find a young girl who is playing hide and seek and he see her play and while playing the game she falls into the river and he runs to her to save her and after he save her a man comes out and sees this and shoots the monster and after this the monster feels pain and anger again and is filled with rage and again swears revenge on humans. When the monster is near Geneva he meets Victor’s younger brother William and filled with rage The Monster strangles him after William mention that he is a son of Alphonse. The Monster kills William and then takes a picture that William has been carrying of Caroline Frankenstein, then the monster places the picture on a girl in a barn who is later found as Justine who is killed because of Williams death. After a long journey the monster finds Victor and tells him about the journey and the death of his brother. The monster then forces Victor to make him a mate so she can be with him.…

    • 850 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Fireworks

    • 1317 Words
    • 4 Pages

    Jerry Yu is an American born Chinese man with an MBA who runs a small family chain of businesses in New York. He is faced with a decision to invest in the Chinese fireworks industry. Jerry must assess the attractiveness of the fireworks industry along with the risks involved. Throughout this paper we will analyze the pros and cons of entering the market of Chinese fireworks.…

    • 1317 Words
    • 4 Pages
    Powerful Essays