Over view of Yushan Company

• 7th Largest bike manufacturer in Taiwan &

Producing 200,000 bikes per year
• Bikes design for comfort and performance with
streamlined shapes and distinctive colours
• rechargeable battery–powered Electric bike
introduced in 2007
 Yushan Bicycle - Taiwan
Functional
Service Manufacturing Sales Operation
(Financial, Operations (Director – Zonghan)
HR, IT,
Engineering)

Conventio Electrical Europe Group Oceania Grroup

Asian Group
nal bike Bicycle (Taiwan,Sigapore,Japa ( Germany,France ( Astralia,New Zealand,
n) Indonesia )
, etc)

Yushan Australia
(GM – Hamilton)
 International Strategy of Yushan
3 Phase expansion plan create due to slowdown of domestic
• Phase 1 : Asia Market
High End Market
Similar experience and expertise

• Phase 2 : Europe Market

• Traditional distributional Strategies
• Difficulties faced due to well entrenched market
• focus opportunistically on contracts for large-volume sales in Eastern
Europe for new urban bike-share programs

• Phase 3 : Oceania Market

• establishing sales subsidiaries in Australia, New Zealand, and Indonesia
• James Hamilton is GM of Yushan Australia
• View as strategically entrance to united states from the knowledge of
Oceania Market
 Problems and Conflicts – 2016
• Transfer Pricing Conflicts –
Transferring part of Over head of Europe Group and Head Office to Y-
Australia without giving support

• Information Systems Problems- New ERP introduce early 2015

• make unrealistic delivery commitments due to incorrectly reported stock
• Inaccurate system generated margin for a unit
• Allocation of significant time from sales staff for record orders
• Less corporation between HO & Y-Australia,
insufficient training – by Y Australia ,
lack of effort and poor attitude – By Head office
• Delivery Delays
Demand and Supply to YA
( Yushan Australia)

• Unexpected changes of demand negatively impact

on YA
• Recorded stock doesn’t available in physically and
delay deliveries
• Cancellation of orders due to delay delivery and
discount for surplus supply
Cultural differences between Head quarters and
YA
• Even regional team more convenient to operation
work. But, they are adapting more in geographically
rather than organization culture
• Resource planning, Marketing, Pricing strategies
may vary with the region to region or Country to
country.
Ex : contracts for large-volume sales in Eastern Europe,
particularly new urban bike-share programs
vision of GM -YA and Head
quarters
• Head quarters (HQ) looking on faster product
penetration with higher margins but, YA
Phase 1 ; set prices at the lower end of the range for
similar-quality bicycles on the market to build
volume quickly
Phase 2 : advertising to build Yushan’s brand image,
expanding distribution by self funding from 1st phase
SWOT Analysis of Yushan Bicycles

• analysis is a strategic tool to map out the strengths,

weakness, opportunities and threats that a firm is
facing.
Porter 5 Forces / Strategic Analysis of
Industry Analysis
• understanding the relative powers of the key
players in the business
PESTEL, PEST / STEP Analysis of
Yushan Bicycles
• identify the source of firm's competitive advantage
based on PESTEL analysis and Organization's Core
Competencies
Recommendation – For Hamilton
• To increase the volume, Cost reduction is a one of
the option. In addition to that, Promotions, Brand
enhancement, new products for different segment
• Dollar fluctuation also need to consider the
evaluation of cost performance
 Recommendation
• Zonghan need to attend
• the issues related to ERP system
• Providing the training session to staff

• Sales strategy need to re evaluate.

• sales increase from 6,000 to 10,000 units without obtaining
additional staff and warehouse
• Identifying new market Ex; E-bike

• Short and long term forecasting for specific models to

improve the reliability of supply

• Limitations need to introduce to Hamilton’s Autonomy

such as pricing and production positioning
 Recommendation – For Zonghan
• Need to negotiated with Hamilton before transfer the
cost and price changes
• Need to investigate the documentation and stock issues
of new ERP system and correct them immediately
• Need to evaluate the training
Build a corporate level strategy - organizing your findings and
recommendations in a way to answer the larger strategic objective of the
firm