Hangzhou Lan Lan Electron Trading Company, also called Hangzhou Zheng Peng electron Pty Ltd, is an organization in China, which main focus on the trading products of network communication, GCS (generic cabling system), switch, plug, buzzer, and main products are distributor and diode. In addition, Lan Lan acts as agent and selling Hong Yan GCS and electric circuit plant. Lan Lan is a small company, main officers just has three persons. However, it does not bother Lan Lan to be in the lead position in the market. Since founded in 2004, Lan Lan was doing better and better. Lan Lan has established the good connection with Hangzhou Hong Yan electric company, which is a big and powerful company in this area, and provides distributors to Hong Yan since 2005. Now, the main clients and customers are government enterprises and private business companies.
In the report, there will mainly focus on and do analysis on the internal and external changes in Lan Lan, and the issues of internal and external of company that Lan Lan had solved and will face in the future. The report also provides some suggestions for Lan Lan about the deficiencies in Lan Lan, which Lan Lan had discovered and potentially has not seen.
Hangzhou Lan Lan Company, which named by the owner Lan Zhang. The all information mentioned in the report was based on interview and was been organized, finally be presented here. It is a report about the internal and external drivers for Hangzhou Lan Lan electron trading company, and the approaches Lan Lan had token and will process. The report organizes all the issues that Lan Lan is facing, and at the same time the report sort out all the perspectives, such as resource and rational. Furthermore, the report highlights the main strategies, models and tools Lan Lan relies on to meet the issues. Finally, there are some suggestions provided in the report for Lan Lan could improve in the future.
“Internal process reform is being driven by two factors: the need for cost reduction in a time of financial stringency and the need to perform to business standards” (Kloot, Martin 2000). In the case initially will discuss the cost issue. The cost includes purchase cost, authentication cost and rent. Most of time, company tends to needed resource from other competitors and suppliers depends on have a good connection with them (Ranganathan, Dhaliwal and Teo 2004, 134). Lan Lan has doing business for several years, keeps long-term corporation with some suppliers and other competitors. However, almost all the goods prices are same and the purchase costs are same as well in the market. Therefore, Lan Lan and other competitors none of them could beyond each other in the cost aspect. However, actually purchase cost had been influenced by another factor, which is government authentication fee. The government authentication is the authentication for the products such as diode, distributors, switch and buzzer by government professional department. The authentication could ensure product has achieved the standard and could be use in secure. However, the authentication fee is expensive and the fees should be distributes on every product. Thus increased the cost of products and purchase cost for sure, and at the same time the selling price would not increase by the rise of cos. In addition, government not require every products should be authenticated, and the products which without authentication could have same performance as the products which with authentication. So for Lan Lan, only if buyers require authentication, otherwise would not purchase authenticated products.
In addition, the main internal driver for Lan Lan tends to improve is increasing sales person.
It is significant for sales person to make a long-term relationship with customers (Weitz and Bradford 1999, 241). As introduced, Lan Lan’s business mainly from internet and friends introduce, owner does not put much