Anhui Economic Management Cadres’ Institute
Program: HNC in Business
Unit Title: Business Environment
Unit No: 4 Assignment Title: Environmental Report
Assignment No.: 401, 402
Issue Date: Dec. 9, 2009
/Submission Deadline: Part 1: Dec. 31,2009; Part 2: Jun 31, 2010
Assessor/Tutor: Li Meng , Li Meng
Internal Verifier: Hui Qiao
Student’s Reg. No:
NOTES TO STUDENTS
? Check carefully the submission date and the instructions given with the assignment. Late assignments will not be accepted.
? Ensure that you give yourself enough time to complete the assignment by the due date.
? Do not leave things such as printing to the last minute – excuses of this nature will not be accepted for failure to hand-in the work on time.
? You must take responsibility for managing your own time effectively.
? If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension.
? When you refer to the work of other authors in your assignment, you must practice citation by following Harvard System for Referencing.
? If you are caught plagiarizing, you could have your grade reduced to zero, or at worst, you could be excluded from the course.
I confirm that this is all my own work.
ASSESSMENT for Part 1
Descriptors Evidence Feedback Assess
1. Identify the mission, objectives and
responsibilities of an organization
1. Identify the key objectives
Key objectives are correctly declared.
2. Evaluate the extent to which the organization achieves the objectives of three stakeholders
Proper evaluation is presented.
3. Explain the responsibilities and strategies employed to meet them
Proper explanation is offered.
2. Investigate the economic, social and global environment 2. Explain the impact of industrial policy initiatives on Chery
Proper explanation is presented.
3. Investigate the organizational behavior and the market environment
1. Explain how the market structure of the car industry deviate from the model of perfect competition
Proper explanation is presented.
2. Illustrate the relationship between market forces and organizational
responses Proper demonstration is presented.
3. Explain the organizational
behavior and competitive strategies Proper analysis is made.
M1 Suitable explanations have been made to analyze and process the information collected and presented. The report shows evidence of elementary analysis and development of argument.
M2 A justified choice of the demonstration and concepts to analyze the environment faced by the organization is given. Evidence is shown that you have made good reference from various learning sources.
M3 The report is presented in a standard format and the deadline to submit the final report has been met. Manage your work independently according to a time schedule.
D1 The report has justified analysis based on a synthesis of the relevant factors that exist in the environment. All aspects of the questions were addressed and researched adequately.
D2 The analysis, explanation and assessment are interlinked logically and are mutually consistent. The report shows evidence of analysis, supported by logical argument.
D3 The report demonstrates creative thinking Creative thinking is shown in the work.
Assessor’s additional comments
Chery Automobile Co., Ltd. was founded in 1997 by five of Anhui’s local state owned investment companies with an initial capitalization of RMB 3.2 billion. Plant construction commenced on March 18, 1997 in Wuhu, Anhui Province, China. The first car came off the production line on December 18, 1999. And on August 22, 2007, the one-millionth car of Chery rolled out the assembly line successfully, which signifies that Chery has already achieved its first-stage goal in the process of building a successful independent Chinese brand, and is now on its way to create a world famous brand through opening and innovation.
In 2007, the annual sales volume of Chery reached 381,000 units, increasing by 24.8% compared with 2006. In 2007 also, Chery achieved an annual export volume of 119,800 units. As a result, the overseas sales of Chery had doubled again with an increase rate of 132%, ranking 1st for 5 consecutive years in car export in China.
As early as its foundation, Chery has been persistently carrying forward the spirit of “self-reliance, self-improvement, innovation and enterprising”, and sticking to the objective of “bringing together excellent talents and capital, striving for world leading technologies, owning independent intellectual property rights, building internationally-famous brand, developing the global automotive market and ranking among the world top automakers”, so as to ceaselessly sharpen its core competitiveness in fierce market competition. Through 10 years of leap-forward development, Chery has currently had independent capacity for the R & D of vehicles, engines and some key parts and components, independent intellectual property rights and core technologies, and become China’s largest enterprise in the R & D, manufacture, sale and export of Chinese independent-branded passenger cars, laying a solid foundation for more intense competition and faster development. Mr. Jin Yibo, official spokesman of Chery, said that Chery’s responsibility is to design and manufacture safer, saver and greener models.
At present, Chery possesses a full set of production and R&D units, such as Car Factories, Engine Factories, Transmission Factory, Automotive Engineering and Research Institute, Planning & Design Institute and Testing Technology Center, and boasts an annual output of 650,000 cars, 650,000 engines and 400,000 sets of transmissions. Chery’s existing products include dozens of models under ten cars series (QQ3, QQ6, A1, Riich2, Cowin, Karry3, A5, Tiggo3, Eastar and Cross Eastar). By the end of 2007, the number of Chery employees had reached 25,000, and its total assets had exceeded RMB 22 billion.
Chery, with the ambition to create an independent famous Chinese brand, as early as its product entering the market, has set up the eternal aim of “customer satisfaction” and the quality principle of “taking offering customers with zero-defect products and considerate service as the persistent objective of each employee”. This corporate philosophy ensured that Chery obtained ISO9001 International Quality System Certification in February, 2001. In October, 2002, it took the initiative in obtaining ISO/TS16949 Quality Management System Certification from Germany TUV. Its commitment to unrelenting quality control made all the cars Chery manufactures conform to Chinese national and international standards. Because of its ceaseless efforts on quality control, Chery was jointly appraised as the "Advanced Collective of National Quality Work” by Ministry of Personnel and General Administration of Quality Supervision, Inspection and Guarantee of PRC, and as the "Chinese 21315 Quality & Credit Level AAA Enterprise" by the relevant authoritative ministry of China.
Since the earliest stage of its development, Chery has been paying attention to the development of the markets both at home and abroad, with “no stability without domestic market, no strength without overseas market, and promoting the domestic market with overseas market and flexible mode” as its principle. At the same time, it also actively practices "going out" strategy. Therefore, it has become the first Chinese car maker who exports whole vehicle, KD parts, manufacturing technology and equipment of vehicle abroad. In 2006, the export volume of Chery exceeded 50,000 units, and Chery was selected as the “national vehicle export base enterprise” by the Ministry of Commerce and the National Development and Reform Commission of China. At present, Chery products are exported to more than 60 countries and regions, ranking 1st for 5 consecutive years among car exporters from China since 2003. In addition, Chery successively reached cooperative agreements with America Quantum, Chrysler, and Italy Fiat in 2007, creating a new epoch of transnational cooperation for the Chinese auto industry. Through years of continuous improvement, Chery’s brand and corporate image has lifted rapidly. In October 2006, “Chery” was acknowledged as one of the Chinese famous trademarks, and ranked 62nd among the top 500 most valuable Chinese trademarks. In November of the same year, Chery was honored as the 11th most favorable Chinese companies by Fortune Magazine, becoming the only Chinese car manufacturer ranking top 25 in the list. Chery was selected among the top 20 most globally competitive Chinese companies in June 2007 and among the top 100 most competitive enterprises of the developing countries in December of the same year. According to the statistics of the International Organization of Motor Vehicle Manufacturers, Chery ranked 27th in the world auto industry.
Chery, with its vigorous and innovative culture, has achieved rapid growth of its own, thus winning the attention of the State and the Party leaders. Chery will consistently carry forward the spirit of “hardworking and enterprising”. With manufacturing “much safer, more energy-saving and more eco-friendly” vehicles as its task, Chery will keep improving its product quality and service level, try hard to create advanced technology and management method for the auto industry, so as to make its due contribution for the Chinese auto industry to rank among the world leading automakers.
The gap between China's automobile industry and the world's advanced level comes with historical reasons. Chery considers it as its duty-bound historic responsibility as a Chinese automobile company to make up for the gap. Newly born Chinese auto brands including Chery will face an increasingly competitive market, which is not an ideal situation. With the view of globalization, Chery shall actively carry out international cooperation in an innovative mode. While exerting to improve its international competitiveness and the internationalization of its brand, Chery will realize the win-win situation and the mutual development with its partners.
Aesthetic design is being aided by Bertone and Pininfarina of Italy known for their designs for Ferrari and Lamborghini. AVL of Austria is also working with Chery to produce 18 engines, including a turbodiesel, for the new line of cars. The new engine brand, called ACTECO, meets Euro IV emissions standards and uses advanced technologies such as aluminium alloy cylinder blocks/heads and direct fuel injection. Bosch is helping Chery to design modern transmissions. Lotus Engineering (known for their racing car chassis expertise) is aiding Chery in car design and quality. Ricardo Consulting Engineers is also developing a hybrid powertrain for Chery for use on China's first hybrid vehicle. Chery recently entered into a partnership with Chrysler to produce mid to compact vehicles for the United States and European market. The Chrysler/Chery tie-up is a win for both companies. With this deal, Chery has established itself as the clear front runner among China’s local car assemblers. With Chrysler’s guidance, it will gain the knowledge and expertise necessary for its cars to meet the stringent safety and emissions requirements in developed markets like the U.S. By improving the quality of its cars, Chery will become an even stronger competitor in China, against other local assemblers as well as the joint ventures of global players.
With the 1,000,000th car rolling out the production line, Chery has a new starting point for innovation and exploration in technology, management and system. Chery will keep going on its way to become a modern international enterprise with top human resources and technological capabilities, a world leading management and corporate culture, and a strong sense of social responsibilities.
While providing safer and more environment-friendly and more energy-efficient vehicles to the consumers all over the world in the near future of ever growing internationalization, Chery will also give its value back to every corner of the land. 同时提供世界各地的日益国际化不久的将来更安全，更环保的消费者友好和更节能的汽车，奇瑞也将给予价值恢复土地的每一个角落。
• Disaster was Ruthless but People were Not Chery’s Accumulate Donation Amounting RMB24 Million
• Duty and Responsibility: Chery Provided Complete Services to the Games
• Chery Donated RMB1Million to Establish “China Sand Control Greening Foundation of Chery”
China: New Car Industry Policy
The State Development and Reform Commission issued the Policies for the Automobile Industry on 21 May 2004. The Policies aim to restructure and strengthen the automobile industry in China and also /provide guidelines for foreign investment in the industry. 国家发展和改革委员会5月21日发布2004年汽车产业的政策。该政策的目标是改组和加强在中国汽车行业，还规定在外国投资的行业准则。
The Policies call for an overhaul of the Chinese automobile industry by the year 2010 in order to create large companies that can compete on the international market. As part of this overhaul, car and motorcycle manufacturing enterprises are encouraged to develop international cooperation and large enterprise groups are encouraged to associate or merge with international automobile groups.
Chery, the Only Automaker Listed Among Top 200 Chinese Exporters
Prepare a formal environmental report of Chery, covering the issues described. 准备一个正式的奇瑞环保报告，涉及的问题描述。
•Identify the objectives and responsibilities of Chery within its business environment by presenting an analysis in which you : 确定在其营商环境的分析提出的目标和责任，奇瑞在其中：
identify the key objectives of Chery (1.1) 奇瑞确定的主要目标
evaluate the extent to which Chery achieves the objectives of three stakeholders(1.2) 评估在多大程度上奇瑞实现三个利益相关者的目标。
explain the responsibilities of Chery and strategies employed to meet them(1.3) 解释奇瑞和就业战略，以满足他们的责任。
•Investigate the economic, social and global environment in which Chery operates by presenting an analysis in which you : 调查的经济，社会和全球环境中，奇瑞由提交的分析操作，你：
explain the impact of industrial policy initiatives on Chery(2.2) 解释对奇瑞汽车产业政策倡议的影响
•Investigate the behavior of Chery in the market environment by presenting an analysis in which you : 通过调查分析，提出了奇瑞在市场环境中，你的行为：
explain how the market structure of the car industry deviate from the model of perfect competition(3.1) 解释如何在汽车业的市场结构偏离完全竞争模型
illustrate the relationship between market forces and Chery’s responses (3.2) 说明市场力量与奇瑞的反应的关系
explain the behavior and competitive strategies employed by Chery (3.3) 解释行为和奇瑞采用的竞争战略
•Use a standard business report structure. 使用标准的业务报告的结构
•Word process the report.
•Use 12 point Arial or Times New Roman script.
•Use the Harvard referencing system.
•Limit the body of the report to around 2,000 words.
•The draft report for part 1 will be discussed at the tutorials on Tuesday 08 December 2009.
/•Complete the title page and sign the statement of authenticity.
•Use a butterfly or treasury tag to keep the pages of your work together.
•Submit the work to Ms Meng in the teachers’ office by
•17:00 on Thursday 31 December 2009 for part 1