Strategic management and leadership for BYD Company limited

When the company was founded, it started as a factory for rechargeable battery where it competed in the market of Chinese against imports of Japanese. BYD was seen to grow very quickly within a period of 10 years and it captured more than half of the market of mobile phone battery worldwide and hence became the largest manufacturer of every type of rechargeable batteries. The company continued to expand and it had to replace machine work with cheap and local labor so as to lower the costs. It later expanded beyond batteries and added automobiles and components of mobile phone (Huckman & MacCormack, 2006). Part 2: company data which can be used to evaluate its success concluding with your thoughts about whether or not the company can be described as successful.

BYD produces lithium iron phosphate batteries every year to power 335000 standard sedans and this is like a third of all the vehicles sold during 2016 in Australia (Wang & Kimble, 2010). This data from the company shows that BYD Company limited is a successful company. Investors are interested in high profit margins and profit growth in a company so as to give a hand of help. The growth and success of BYD attracted help from the central government of China. Other cities like Beijing also decided to promote BYD in electric vehicle space so as to spearhead growth and China to be termed as an export industry. In the last ten years, BUD recorded $ 1. 4 billion profit and this shows that the company is a success.

Major measures of success include good financial statements, customer satisfaction and a great number of new customers. The BYD Company limited, through the company data can be considered to be successful because it meets the measures of success as it had good profit margins, it satisfies all its diverse customers and it has also shown to attract new customers worldwide (Maital & Seshadri, 2012). This indicates that BYD Company limited is successful. A profit in terms of billions from the company data. d) Confidence –everything that has wheels, BYD wants to put a battery. Confidence is such an important factor that has inspired this company to great success as they are confident that they can make it happen. e) Execution-Most companies make paper plans which remain just plans without putting them into action.

BYD is a company that has put its paper plans into action hence successful company f) Perseverance-this is the act of a company to persevere all its working conditions in the hope that things will get better in the future. it has been seen to sell their products in large amounts to other businesses for resell and the company also sells directly to customers thus keeping a relationship for customers both new and existing customers. Relationships are as important as they are used to keep old customers in to the company while attracting and maintaining new customers (He & Mu, 2012). The relationship also adds value by ensuring that the company’s brand is strengthened hence ensuring service delivery to all customers. Product pick up This activity involves logistics where the company needs to prepare products that is, vehicles or batteries in the case of BYD Company so that customers can pick the products which they order for them at ease.

When the company provides convenient and accessible pick up points of products by the customer, this adds value to the company as customers will be satisfied. Human resources The work of the HR is to ensure that there is suitable staff all the time to ensure that all the company activities are carried out. BYD’s staffs are hired full time and others part time. They work in shifts to ensure work done. BYD extensively trains their staff with the aim of maximizing efficient and effective operations to ensure success of all its primary activities. Procurement The company of BYD procures its assets like machines, robots among other assets to ensure that activities run efficiently and effectively. Innovation technology enables BYD to offer better services to customers and maximally operate without errors and within their capacity.

It is very rare to find some of its technologies with their competitors like Tesla Company. For instance, their machines of operations are found on automation, and this helps them produce more and also sell more. It is because of innovation in terms of technology where companies achieve competitive advantage. BYD also has a tracking system to track each and every operation to ensure that products meet customers’ expectations. BYD is recognized for producing highly quality and reliable products for their customers and this is a valuable capability. Branding is such a valuable thing for a company. A company like Tesla has concentrated much on branding and forgot about reliability and quality which BYD Company focuses on. It is not possible for a company to imitate other company’s brands and that is why each company’s brands of products are unique.

Customers have tested BYD’s products and found them being of good quality which competitors cannot match. BYD leadership has helped management deliver goods as expected by the organization because it is strategic thinking form of leadership (Northouse, 2018). BYD company success has being achieved through its strategic leadership with help of various attributes. It is important to note that this company has many attributes such as commitment, accountability, good communication, good decision making process and inspirations. BDY company leadership can be explained by use of behavioral leadership theory which focus on the behavior of leaders. According to this theory there are three type of leaders that is autocratic leaders, democratic leaders and Laissez-faire leaders. This company has then charged premium prices because of value addition features.

Attributes of these rechargeable batteries and electronic automobiles include consistency in promotion, high quality and superior brands. Differentiation focus-This is a competitive strategy that is aimed at differentiating itself from Tesla Inc, ABB and Bosch companies who are its main competitors. This kind of strategy takes place in specific segments in china and some other parts of the world. It is important strategy where the BYD Company prevents customers at the border from buying products from competitors by meeting their demands through additional features for the product. In the case of BYD Company, other companies like Tesla are coming up with similar products like those of BYD and this can bring a stiff competition for these companies and many more and this factor of competition might make BYD Company lose their current customers to Tesla or even their potential customers if it does not continue innovating and making their products better than those of the competitors.

The best way to deal with completion is continuous innovation where a company is expected to innovate and invent new products to keep and attract customers and this is what BYD company should continuously do to deal with competition in the near future (Lasserre, 2017). Government can also formulate laws that may affect company operations like those of having increased tariffs. This affects business success because it touches on its finances and therefore companies like BYD need to set a strategy to help take this risk but plan on the level of accepted risk so as to ensure success of the business (Lasserre, 2017). The pricing strategy also is a factor that can affect success of a company because when prices are set too high or too low; this can be a problem to the company.