The enterprise credit report is a kind of instrument reflecting the credit status of the enterprise, which provides the inquirer with comprehensive and accurate comprehensive credit information of the enterprise and provides important decision-making reference for all kinds of credit transactions. The enterprise credit report includes the following contents:

Enterprise basic information: including enterprise name, registration number, legal representative, registered capital, business scope, date of establishment, registration authority, etc.

Corporate financial information: including balance sheet, profit statement, cash flow statement, etc.

Enterprise credit information: including loan institution, loan amount, loan term, repayment status, etc.

Enterprise public record information: including administrative penalties, judicial proceedings, tax arrears records, etc.

Other information of the enterprise: including equity structure, foreign investment, foreign guarantee, etc.

Enterprise credit report is one of the important basis for evaluating the strength of an enterprise, it can help the inquirer to understand the basic situation of the enterprise, financial situation, credit status, etc., so as to judge whether the enterprise has the ability and willingness to repay debt, whether it is worth cooperation or investment. However, corporate credit reporting does not fully reflect the strength and competitiveness of an enterprise because of the following limitations:

Timeliness: Enterprise credit reports are usually compiled based on data submitted by enterprises within a certain period of time, which may be lagging or untimely and cannot reflect the latest business conditions and market changes of enterprises.

Integrity issues: Corporate credit reports may not cover all information related to the business, such as some implicit or informal information, such as goodwill, brand value, technological innovation capabilities, etc.

Comparability issues: There may be inconsistent standards or data inconsistencies in corporate credit reporting prepared by different institutions or regions, making it difficult for searchers to conduct horizontal or vertical comparative analysis.

Operational problems: Some inquirers may lack professional knowledge or experience, find it difficult to understand and use the data and indicators in the enterprise credit report, or be influenced by personal subjective judgment or bias, resulting in a distorted or one-sided evaluation of the strength of the enterprise.

Therefore, in order to conduct a comprehensive, in-depth and objective evaluation of the enterprise, it is necessary to combine other analytical methods and tools to systematically analyze the internal strengths and weaknesses of the enterprise and external opportunity threats from different angles and levels, so as to reveal the strength and competitiveness of the enterprise. Below, we will introduce some commonly used methods and models for analyzing the strength of a business, as well as cases provided by Champ Consulting to clients, to illustrate how to use these methods and models for practical analysis and problem solving.

SWOT analysis

SWOT analysis is a commonly used strategic analysis tool that helps companies identify their strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) and develop strategies based on these four elements. The steps of SWOT analysis are as follows:

Determine the analysis objectives: identify the enterprise, industry, market or product to be analyzed, as well as the objectives or problems to be achieved.

Collect information: Collect internal and external information related to the analysis objectives, including financial data, market data, customer feedback, competitors, etc.

Fill in the SWOT matrix: According to the information, the advantages, disadvantages, opportunities and threats are listed in the four quadrants of the SWOT matrix, and ranked by importance.

Formulate strategies: According to the elements in the SWOT matrix, formulate corresponding strategies, including SO strategy (using advantages to seize opportunities), WO strategy (overcoming disadvantages to seize opportunities), ST strategy (using advantages to deal with threats) and WT strategy (overcoming disadvantages to deal with threats).

Case Study: A SWOT analysis service was provided to an auto parts manufacturing company to help the company develop a strategy appropriate to its stage of development and market environment.

Based on the elements of the SWOT matrix, Champ Consulting has made the following strategic recommendations for the business:

SO strategy: take advantage of the advantages of high product quality, strong technological innovation ability and rich management team to seize the opportunity of the new energy vehicle market, develop and promote parts and components products that meet the standards and needs of new energy vehicles, and increase market share and brand awareness.

WO strategy: to overcome the disadvantages of small scale, single marketing channel and insufficient R & D investment, seize the opportunity of the government to encourage the innovation and export of auto parts, increase R & D investment, expand diversified marketing channels, seek cooperation or alliance with domestic and foreign automobile brands, and increase the proportion of exports and sources of income.

ST strategy: make use of the advantages of strong cost control ability and multiple patents to deal with the threats of fierce competition in the industry and intensified international trade frictions, maintain reasonable price advantage and profit margin by improving production efficiency and reducing costs, and prevent technology leakage and infringement by strengthening patent protection and rights protection.

WT strategy: to overcome the disadvantages of limited production capacity, serious brain drain and lack of long-term planning, to deal with the threats of rapid product upgrading and diversification of customer demand, to improve production capacity and product quality by expanding production scale and equipment renewal, to retain and attract outstanding talents by improving personnel training and incentive mechanism, and to adapt to market changes and customer needs by formulating long-term development goals and strategic planning.

Value Chain Analysis

Value chain analysis is a tool to analyze the competitive advantage of enterprises, which can help enterprises identify their own activities in production, sales, service and other aspects of value creation, and optimize or improve according to these activities. The steps for value chain analysis are as follows:

Determine the analysis objectives: identify the enterprise, industry, market or product to be analyzed, as well as the objectives or problems to be achieved.

Draw a value chain map: According to the main business processes of the enterprise, divide them into main activities (Primary Activities) and auxiliary activities (Support Activities), and draw a value chain map. The main activities include internal logistics (Inbound Logistics), production (Operations), external logistics (Outbound Logistics), marketing and sales (Marketing & Sales) and after-sales service (Service); the auxiliary activities include procurement (Procurement), technology development (Technology Development), human resource management (Human Resource Management) and infrastructure (Infrastructure).

Analyze value activities: analyze the weight, costs, benefits and risks of each activity in the entire value chain, and assess the extent to which each activity contributes to customer value.

Identify competitive advantage: Based on the results of the analysis of value activities, identify the activities in which the company has competitive advantages or disadvantages and compare them with competitors.

Develop improvement measures: According to the identification results of competitive advantages or disadvantages, formulate corresponding improvement measures to improve the efficiency and effectiveness of enterprises in the value chain.

Case: Champu Consulting provided value chain analysis services to an e-commerce platform to help the company optimize its business processes and value creation activities.

Champu Consulting analyzed the company's various value activities and proposed the following improvements:

Internal logistics: The enterprise's internal logistics mainly includes the procurement of goods from suppliers, warehousing, classification, packaging and other links, the cost of this activity is higher, the efficiency is low, the contribution to customer value is small. Improvement measures include: optimizing the procurement process, reducing inventory, and improving inventory turnover; adopting an intelligent warehouse management system to improve the accuracy and speed of classification and packaging; establishing long-term cooperative relationships with suppliers to reduce procurement costs and risks.

Production: The production of the enterprise mainly includes the quality inspection of goods, labeling, price calibration and other links, the activity is low cost, high efficiency, the contribution to customer value is greater. The improvement measures include: strengthening the standards and processes of quality inspection to ensure that the goods meet the quality requirements; adopting a unified labeling and price system to improve the recognition and credibility of the goods; and formulating reasonable pricing strategies according to market demand and competition to improve the price competitiveness of the goods.

External logistics: The external logistics of the enterprise mainly includes the transportation of goods from the warehouse to the customer's hands. The cost of this activity is higher, the efficiency is lower, and the contribution to the customer value is greater. Improvement measures include: optimizing distribution routes and methods, reducing transportation time and cost; cooperating with third-party logistics companies to improve the quality and coverage of distribution services; providing multiple distribution options and tracking functions, and increasing customer selection and satisfaction.

Marketing and sales: The company's marketing and sales mainly include the promotion and sales of goods through websites, social media, advertising and other channels, which is costly, efficient and contributes significantly to customer value. Improvement measures include: enhancing the design and function of the website, improving user experience and conversion rate; using social media and advertising and other channels to expand brand awareness and influence; adopting personalized and precise marketing strategies to improve customer loyalty and re-purchase rate.

After-sales service: the enterprise's after-sales service mainly includes the provision of goods return, maintenance, consulting and other services, the cost of the activity is low, high efficiency, the contribution to customer value is greater. Improvement measures include: simplifying the process and conditions of return and exchange, improving customer trust and satisfaction; establishing a professional maintenance team and network to improve the speed and quality of maintenance services; setting up a multi-channel customer service center to provide timely, friendly and professional Consulting services.

Procurement: The procurement of the enterprise mainly includes the procurement of resources such as goods or raw materials from suppliers, which has a greater impact on the main activities. Improvement measures include: establishing a supplier evaluation and management mechanism, selecting high-quality, reliable, and well-cooperated suppliers; implementing different models such as centralized or decentralized procurement, and adjusting procurement strategies according to market changes; strengthening communication and coordination with suppliers, Timely feedback on needs and problems.

Technology development: the technology development of the enterprise mainly includes the activities of technological innovation and improvement of the website, warehousing, distribution and other systems, which has a great impact on the main activities. The improvement measures include: increasing investment in technology research and development, introducing advanced technical equipment and talents; establishing a technological innovation incentive mechanism to encourage employees to put forward ideas and suggestions; conducting technical exchanges and cooperation with other e-commerce platforms or scientific research institutions, and learning from the latest technology Achievements and experience.

Human resource management: the human resource management of the enterprise mainly includes the recruitment, training, assessment, motivation and other activities of employees, which has a great impact on the main activities. Improvement measures include: formulating reasonable recruitment standards and processes, attracting and selecting suitable talents; providing diversified training content and methods to improve the skills and quality of employees; establishing a fair assessment system and reward and punishment mechanism to evaluate and motivate employees' performance And behavior; pay attention to the welfare and development of employees, and improve employee satisfaction and loyalty.

Infrastructure: The infrastructure of the enterprise mainly includes the activities of providing hardware, software, network, legal, financial and other resources required for the operation of the enterprise, which has a greater impact on the main activities. Improvement measures include: updating and maintaining hardware, software, network and other equipment to ensure the stability and security of enterprise operations; complying with relevant laws and regulations to prevent legal disputes or risks; establishing a sound financial management system to control costs and increase revenue, Improve profit margins.

Through value chain analysis, Shangpu Consulting helps the enterprise to find out its advantages and disadvantages in various value activities, and puts forward targeted improvement measures to improve the efficiency and effectiveness of the enterprise in the value chain, so as to enhance the competitive advantage and customer value of the enterprise.