Hebei Goldpro New Materials Technology Co., Ltd Harvard Case Solution & Analysis

Hebei Goldpro New Materials Technology Co., Ltd Case Solution

Background

Global Industry:

Iron and steel manufacturers melt and refine iron ore into iron, which is subsequently processed into steel. Companies manufacture steel into various shapes such as bars, plates, rods, wire etc. Global iron ore mining industry is dependent on the trends in raw steel production and economic growth that drive demand for steel.

The performance of the global iron ore mining industry has been highly unstable in the recent years.The reason for this is that in the world, iron Ore prices are fluctuating,this has greatly affected the demand and supply for the customers. Since price is the main factor and highly correlated with industry performance, higher prices are driving up revenue and profit. The price is set by the demand and supply, the industry revenue is declining over the five years by 35.7%the fall in revenue directly affects industry’s profitability and employment fell by 2.1%. However, it is expected that over the five years by 2020, the revenue will rise at annualized rate of 1.9%.The gain reflects that increase in the output and rise in production and prices. These are the factors that will support the demand for the steel and strengthen developed countries.

Chinese industry

According to the Chinese industry, China has the largest share in global iron ore production. The mining industry contributes approximately 20% to 30% to China’s GDP.

Therefore, the Government of China announced that the company has to focus on the new technology, so that customers can become more satisfied and that it will lead the export of the country. In recent years,Chinese economy has overall expanded rapidly, employment has increased, the country currency has appreciated and it is also expected that the GDP of the mainland China increased in 2015.

Hebei Goldpro New Materials Technology Co Ltd

 They are supplying grinding steel balls in different sizes and along with that, they are supplying different size and shapes of the steel according to the demand of the customers. The total investment of the company is $20 million and it has 500 employees.

The company has automatic grinding steel production line, with the annual output of grinding balls 200,000 metric tons. This makes the company the largest manufacturer in North China and a contributor in the increase of Chinese GDP. The company is selling 80% of the grinding balls by exporting in more than 30 countries and 20% of Grinding balls are sold in domestic market. The company is also focusing on R&Din order to meet the demand of the customers effectively.

Aplus Inc. LLC

Aplus Inc. LLC is a leading company in the Mongoliaand it is providing quality innovative products to its customers. A plus core business is that it is providing information technology solutions to customers.

The company encourages and supports new ideas and technology, so that customers  can be satisfied enough; along with that, the company is providing quality and safety in its products and services. A plus can become a significant player in Mongolian IT industry.

In the mining sector,A plus is providing the high quality products in the world and along with that, they are providing world class security system, antivirus program, audit, and consultation services. In addition, the demand of the product is increasing globally,the company has decided to create a joint venture with Gold Proin order to meet the demand of the customers.

Business Strategy plan

Strategic planning is an organizational process, which gives direction to the company on how they allocate their resources in orders to pursue this strategy. It may also spread control mechanisms in order to implement the strategy....................

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