The new development had great impact on production such that it was delayed thus delaying delivery of the product by 30 percent. The management had no option but rather to outsource services for its assembly process from China. This called for comprehensive analysis of the situation leading hiring of consultancy services from Grunwald and Vogel. The intention of hiring Grunwald and Vogel was to help the company address the issue of late delivery that affected production. Based on the case study, risk factors that affected outsourcing process included ethical concern, quality and patent protection.
There are mainly three kinds of FDI: Greenfield investment (The main internationalisation strategy of Aldi and Lidl) Acquisition (Sometimes used by Aldi or Lidl, for instance the acquisition of Hofer) Joint-venture (not discussed in this case) The main advantage of greenfield investment against acquisition are: The flexibility: It gives them the maximum design flexibility of their stores and their warehouse; moreover, they can choose precisely the location of their business in order to optimize the rental cost and the catchment area of their stores. They are able to choose their own suppliers. Economically, it can be interesting. In effect, some countries have policies to encourage investment and creation of new jobs as reducing tax. So by creating new jobs, Aldi and Lidl can benefit from these policies.
To answer a question like this we must examine both sides of the argument: for limitation or freedom from limitation. Because if family sizes were to be limited in the U.S. the government would most likely have to implement it heavily much like the Chinese government has introduced their one-child policy. “The Chinese government introduced the policy to help alleviate social and environmental problems in China. The policy is controversial both within and outside China because of the issues it raises; because of the manner
What long-term strategy should Wal-Mart adopt in China? What Should Wal-Mart Do? Although the continued market expansion into China may seem desirable, Wal-Mart should slow expansion in China until infrastructure expands to support its unique distribution system. China’s under-developed highway network severely hampers Wal-Mart’s effort for efficient distribution. Instead of ending operations, it is important for Wal-Mart to remain a viable competitor in the Chinese market and not completely abandon its foothold gained thus far.
The heavy dependence on retail stores leads to widespread availability of counterfeits which provides a unique challenge and directs towards the importance of having own-stores to ensure the legitimacy of the products. Another problem Shanghai Tang faces now is the need of shift of customer focus from European and American buyers to Chinese customers which will expand the customer base of the company. Even though a lot could be done better the management process of the company is excellent which includes the following i) Design Process: The mixture of both the core collection and seasonal collection maintains a balance between trademark products and the newness factor. The focus on theme and the creative designer as the core adds a lot of value to the design process. ii) Brand Considerations: Focus on the Shanghai Tang DNA leverages the brand equity that has been developed till now but on the other hand it limits the creativity of the designers.
Recommendation: Apple should keep creating innovative functions and increasing more apps, using broad differentiation strategy, adjusting the price to be accepted by customers 3. Large market demand in Asian countries As the decreasing sales of personal computer in Japan and Europe, Asian countries became the largest market in 2011, especially China. The preference of inexpensive feature devices in Asian countries is a challenge for Apple’s premium pricing. Recommendation: To adjust the price to be accepted by customers and reduce the cost on each part of value chain. 4.
3. What is reshoring? Why some companies are reshoring manufacturing in the United States? 4. How Bangladesh can benefit from rising costs of production in China?
Being an educated or skilled immigrant would most likely mean that the steps to naturalization, as in the mandatory costs and testing, would be less of a challenge to fulfill. In Chapter four of the text Racial and Ethnic Groups (REG), it states that “The brain drain is the immigration to the United States of skilled workers, professionals, and technicians who are desperately needed by their home countries.”(REG, chapter four, p. 103) This would cause some reluctance in my decision to migrate to America from China. The fact that I would be possibly taking away something that benefits my native country could cause some second thought. This may not be a major factor if the political system in China had a negative effect on my economic advancement. The same could be said if I was looking for an education in America and eventually decided to stay instead of returning to China because of the lack of opportunity for growth.
ETHICAL ISSUE(S) & DILEMMA The Foxconn suicides can be viewed from an ethical lens because China’s labour costs have been kept low for years, while expectations kept increasing. Global companies are tapping on the low-wage labour market in China to keep costs low, but many fail to fully understand or accept the moral implications. These problems are complex because they result in benefits for some and harms for others, because the exercising of the rights of some usually results in denying the rights of others. (Hosmer, L.T, 2009) The main ethical issue from the Foxconn case would be: whether it is ethical for Mr. Terry Guo, to place the firm’s benefits ahead of the personal well-being of the employees. Being the world’s largest contract manufacturer of computers and electronics (The China Post, 2010) – serving huge companies such as Apple, Dell, Sony and more, Foxconn may not be able to serve its clients if it is unable to maintain its aggressive cost-management policies.
If yes, give the reasons why; if no, why not? Yes, it could be a success. China and Japan are big markets, however Starbucks should take into consideration that these cultures are not particularly coffee drinking cultures. Another problem is that there is an economic distance. $4,90 is normal for a coffee in America, however this could be very expensive in other countries like China.