麦肯锡中远ProposalBuilding the worlds leading ship文档格式.docx

麦肯锡中远ProposalBuilding the worlds leading ship文档格式.docx

《麦肯锡中远ProposalBuilding the worlds leading ship文档格式.docx》由会员分享，可在线阅读，更多相关《麦肯锡中远ProposalBuilding the worlds leading ship文档格式.docx（14页珍藏版）》请在冰豆网上搜索。

COSCOShipRepairGroup

Proposal,version1

July,2001

Thedisclaimerappearsinthefooter.Thistextwillnotprint.

Memorandumto

Mr.ShiChong

Mr.LiDongmei

COSCOshiprepairgroup

ThankyouforthediscussionwehadonthechallengesandopportunitiesfacingCOSCOShipRepairGroup.Mckinsey&

CompanywouldbedelightedtohelpyoudefinethegrowthstrategythatwouldbuildCOSCOshiprepairgroupintothegloballeader.

Mckinsey&

Companyistheleadingmanagementconsultingfirmintheworld.Wehavedeepexpertiseinhelpingcompaniesdevelopsuccessfulgrowthstrategiesthroughouttheworld.WealsoaretheundisputedleaderinmanagementconsultinginChina,withunrivalleddepthofseniorresourcesandmultiyearprovenimpactofhelpingChinesecompaniestransform.

WeworkwithChineseleaders,suchasCIMC,oralsoLegend,ChinaMerchants.Finallywehaveadeepunderstandingoftheshippingandshipbuildingindustry,includingservinggloballeaderssuchasP&

OandDaewoo.Thusweunderstandyourcustomers,competitorsandkeyfactorsforsuccess.

Thisproposalisdividedintosixsections:

1）Contextandobjectives

2）Deliverablesofourcollaboration

3）Proposedprojectapproach

4）Workingarrangements

5）Financialarrangement

6）Mckinseyqualifications

Thismemorandum,theattachedhorizontalexhibits,thefinancialcontractandtheconfidentialityagreementformtogethertheformalpaperworkthatwillgovernourcollaboration.

Obviously,thisproposalisbasedonlyonashortinteractionwithyou.Wewouldbedelightedtoreviseoramenditafterwehavereviewedittogether.

1.CONTEXTANDOBJECTIVES

COSCOShipRepairstrongstartingbase

Inthecourseofitsoverallrestructuring,COSCOGrouphasintegrateditsdifferentshipyardsintoanintegrated“COSCOshipyardgroup”focusedonshiprepair.TheCOSCOShipyardGroup（CSG）hasastrongpositioninChina,whereitisaleaderinshiprepairwith15%marketshare.Italsohasstrongengineeringcapabilitiesthatcanbeleveragedforfurthergrowth.

ItcoversstrategicgeographicpositionsinChina（Dalian,Nantong,Guangzhou）,closetothelargestshippingtrafficcentersofChina.Thesecorebusinessesarefacingdifferentstartingsituationsandchallenges:

¶

Nantong,ajointventurewithHongKong,isverysuccessful,with45MioRMBprofiton450mioRMBturnover,andhasstrongcapabilitiesinshiprepairandmajoroverhaulsforbulk,oilandcargoships.Atthesametime,ithasverylimitedpotentialforgrowthduetocapacityandgeographiclimitation.

Dalian,againaJVwithHongKong,isalsodoingwell,withaleadingposition（300mioRMBturnoverandcurrentlynoprofit）inNorthChinafordrybulkandcargoshipregion.Itspotentialforincreasedcapacityislarge.However,skillsarenotasdevelopedasinNantong.YouareexploringaJVwithSingaporetoincreasegrowth.

Guangzhou,,isthesmallestyard.Itcurrentlygeneratesabout150mioRMBrevenues.ItclearlyissmallversusthepotentialinSouthChina.

Inadditiontothisstrongstartingposition,CSGbelievesthatbeingtheleaderinChina,ithassubstantialstructuraladvantagesitcouldleverage:

ChinahasalowlaborcostbaseandshippinginandoutofChinashouldfurthergrow,thusincreasingtherevenueofshiprepair（Exhibit1）.

Challengesahead

However,atthesametime,CSGisfacingmanychallenges:

Currently,thebusinessismostlyfocusedonlowvalueaddedlaborintensiveactivities,whichcouldbethreatenedinthefuturebylowercostcountriessuchasVietnam,orPakistan.Inaddition,CSGisneitherorganized,norhastheskillsyettomovetomorevalueaddedactivitiessuchassystemoverhauls,ormachinerebuilds.

OvercapacityintheChineseshipbuildingandshiprepairindustryishuge,withover1000yardscompetingforthesamelowvaluejobs.Evenbeingtheleader,CSGisstillrelativelysmallandneedstodefinewhetheritshouldshapetheindustryrestructuring.

Theindustryishighlycapitalintensiveandearnsonlylowreturnoncapital.CSGneedstofigureouthowtomaximizereturnoncapitaltoreachworldleaders’levels

CSGisalreadydoingthelargemajorityofitsrevenuewithforeignships.However,itisstillasmallplayer,onaworldwidebasis.Whileattractiveatfirstglance,itisnotclearwhereandhowcanvaluebecreatedfrombeingaworldplayer.

CSGhasonlybeenrecentlyformed.Atthismoment,thedifferentshipyardsarestilloperatingasindependententities,withtheirseparateP&

L.CSGneedstodefinewhattheintegratedstrategyshouldbeandtheorganizationtodeliverthisstrategy.

YouhavehighaspirationtogrowCSGtoaworldplayer.Atthesametime,youneedtoaddressthesechallen