广电股份全套咨询方案-SVA010424SH-AX(2000E)wk1

SVA/010420/SH-AX(2000GB)0CURRENTORGANIZATIONSTRUCTUREANDMANAGEMENTPROCESSHeadedbyEVPIncludingTV,digitalAV,PC,DRTV,etc.Allmanufacturingenterprisesareindependentlegalentitieswiththeirownsalesandpurchasingsystems(exception:Jinxing)SVATerminalDevicesNewBusinessAssetManag-mentStafffunctionsHeadedbyGManddelegatedtoAssistantGMNon-performingassetswithbookvalueatRMB140milandemployees7500strongHeadedbyViceChairmanResponsiblefortheinvestmentandoperationofEthernet,SHI&TandE-commercePreliminaryDiagnostics:LackofacleardefinitionofthenewITstrategyTheTerminalDevicesgroupincludesmostofthecurrentcorebusinessesandnewproducts

Atleast15businessestobedivested.35minorityJVsprovidethemainincomeforSVAcurrentlyThecurrentcorporatecenteristypicalofaninvestmentholdingcompanyTherearenosystematicapproachandprovenskillstoselect,buildandmanageriskynewinvestments.Mostsubsidiarieshavetheirownprocurement,manufacturing,andmarketingfunctions,withsub-optimalscale.Currentmanagementprocessesineffective.

FORDISCUSSIONSVA/010420/SH-AX(2000GB)1EVALUATIONOFSVASUBSIDIARIES* *Notincludeminority-share-holdingcompanies **Evaluationofcorebusinessperformanceisbasedon1999and2000ROICanalysis***GoodinvestmentrecordSource:McKinseyanalysisStrongPoorCorebusinessperformance**HighLowFuturestrategicimportanceBlackCEWhiteCECEcomponentsITCommunicationsTradingDivestedpropertiesJinxingEducation.Equip.PlasticMoldingMoldShapingGuanglianKaigeAutoElec.FeitingElec.ZhonglingFeiyueLightingGuangxingElec.ComputerTelecomEquip.YirenKaige

RadarPudongLtd.***Imp.Exp.CoForeignTech.Coop.KaigeIntl.TradingLianweiElec.GongxiaoFeiyuIndustrialKaigeIndustrialHuizhongIndustrialKaigeWash.machFeiyueElec.KaigeRadioFeiyueMicrowaveOvenDigitalAVSalesCenterE-Commerce?IT(Net-accessservices)FlatdisplaysystemsIntraction(Ethernet)Break-evenSVA/010420/SH-AX(2000GB)2FIVEGROUPSOFSVASUBSIDIARIESORINVESTMENTS

Source:SVA,McKinseyanalysisOEMBusinessJinxingElectronicsCo.DigitalAVElec.Co.GuanglianElectronicsCo.KaigeRadarCom.Equip.Pl.ZhonglingElec.EnterpriseFeiyueLightingElec.Inst.Pl.FeitingElectricalAppl.Co.KaigeAuto.Elec.Equip.Pl.MoldShapingPl.YirenComm.Term.Equip.GuangfeiPlasticMoldingComputerCo.Trading,services,&managementLianweiElectronicsCo.SalesCenterTVElec.Imp.Exp.Co.KaigeIntl.TradingCo.ForeignTech.Coop.Co.PudongLtd.KaigeRadioPl.EducationalEquip.Co.FeiyueComm.Equip.Pl.TelecomEquip.Ltd.GuangxingElectronicsCo.FeiyueIndustrialCo.HuizhongIndustrialCo.KaigeIndustrialKaigeWashingMachinePl.GongxiaoCo.NewbusinessFeiyueMicrowaveOvenPl.IIT(net-accessservices)FlatScreenDisp.Sys.Intraction(Ethernet)E-Commerce?HoldTobedivestedMinorityInvestments35JVsSVA/010420/SH-AX(2000GB)3BU1BU2BU3BU4…Ether-netSHI&TE-commerce…ORGANIZATIONALSTRUCTUREINTRANSITIONOriginalstructureChairman/CEOFinanceAssetManage-mentQualityControlInvest-mentplanningAdminOfficeMarket-ingAuditingHRSuper-visionR&DMajorityJVsMinorityJVsWholly-ownedventuresTransitionalstructureChairman/CEOStafffunctions*Assetmanage-mentNewbusinessHeadedbyEVPMr.SunHeadedbyDeputyChairmanMr.XuHeadedbyAssistantGMMr.ZhaoTerminalDeviceClosureventuresBUheadBUheadManagementCommittee2*OnlyrelatedstafffunctionsareincludedinmanagementcommitteeManagementCommittee1SVA/010420/SH-AX(2000GB)4NEWORGANIZATIONALSTRUCTUREBoardofDirectorsChairman/CEOSecretarytoBoardCorporateR&DStafffunctionsConsumerElectronicsPCNet-accessequipmentSales/MarketingProductEngineeringProcurementNet-accessserviceProduct3Product2Product1NewproductlinedevelopmentR&DsupportFORDISCUSSIONCentralizeprocurementLeverageE-purchasingplatformOEMGroupNewInvestmentSalesCoAssetManagementProduct4ProductDesignProductionprocessdevelopmentTV、DVD、PCandplasticmodelingcanbeputintoOEMgroupObtainmanufacturingordersAccountmanagement……Closure/divestureEthe