Global Supply Chain Management and Strategic Sourcing Case Study Questions Question 1: Based on the risk factors associated with the Bugabyte and the Bugabyte Lite, which product do you think Grunwald and Vogel will recommend as the best candidate for assembly outsourcing? This case study is embedded on procurement management and global sourcing. This is supported by the move of Metrovox outsource various functions from suppliers in China where it purchases the components of both Bugabyte Lite and Bugabyte for its assembly plant in Germany. In an effort to maintain its market position and competitive advantage, Metrovox was compelled to improve its previous product-Bugabyte by developing video capability. The new development had great impact on production such that it was delayed thus delaying delivery of the product by 30 percent.
Identify the situation that this business is facing ReignCom has experienced great success abroad in other countries, but they now want to increase their presence in China, which is experiencing a boom in the MP3P market. The challenge is they need to decide if they want to build their own plant and market their MP3P under their own brand or outsource it to an existing/new partner or give other companies the license to use their brand. The CEO, Moon wants to create the most efficient supply chain that will be beneficial to his company. Consider and evaluate how this business should manage their supply chain in the future. As part of your analysis, answer these questions: o Can the old strategy continue to work in the future?
This report aims to assess whether Geely can make two companies win-win. 2.0 Introduction In 1999, Volvo sold its car division Volvo Cars to Ford Motor Company for $6.45 billion. But Volvo had dropped profits remarkably since the finance crisis in 2008 and Ford couldn’t relive it so that Ford decided to sell its interest in Volvo Cars. Can Geely finish the mission that Ford had not done? 3.0 Basic situation of Geely's acquisition of Volvo Geely is China's top ten enterprises of automobile industry, entered the car in the field in 1997with the total assets of over 14000000000 yuan.
eBay first entered China by acquiring a minority stake in EachNet. What are the advantages and disadvantages of this method of market entry? One of the most significant advantage of this method of market entry is that when a foreign company decides to acquire a Chinese domestic company, it needs to learn not only the internal structure of the company, its business segments, its original value propositions to the domestic customers, but also its core competencies in competing domestically. Therefore when acquiring a domestic company such as Eachnet, eBay did a good job of not rushing to take over the company and run it as if it is competing in the US market, instead it let the company continue its business model and operations. However, as mentioned in the case, “senior management had not felt respected by their US headquarters, which had not given them enough autonomy and had directed the from afar instead”, it seemed like as time progressed, Ebay started taking too much control over the company without fully learning the consumer behaviors, nor the significance of cultural differences between China and United States.
For this they utilized different methods for selling their product: a company sales force, a Canadian distributor and a U.S. wholesaler. Their sales force, of four salesmen, accounted for about 25% of total sales and mainly focus to service large direct accounts. The remaining 75% came from the Canadian distributor and the American wholesaler. The U.S. wholesaler also offered lift that competed with the Jolson lift. In fact, the Jolson lift only accounted a 20% of the wholesaler total sales.
Is Mr. David Tang a pioneer? Or is he just a dreamer? In this analysis report, I will separate all these arguments into four parts: the company’s activities and current development; comparison of competitors’ strategies and tactics; intercultural issues and costumer behaviour in the luxury industry, especially Chinese market; recommendations and alternative solutions for Shanghai Tang’s future strategies. In this report, I will focus on the two most important factors: “inter Culture” and “luxury”, which will impact on the future strategies of Shanghai Tang, and I will defend my standpoints by analyzing the environment of luxury industry and cultural context in China. 2.
Case Analysis- Wal-Mart Introduction The implementation of Wal-Mart’s strategy in China has failed to achieve the desired sales results. Despite being the leading retailer in the world, Wal-Mart’s model of success that provides a key competitive advantage in the U.S. does not equally translate to diverse international communities. Likewise, Wal-Mart struggled in Germany and eventually withdrew by selling its stores to rival Metro. Despite the challenges currently being faced in China, Wal-Mart has experienced international success in Mexico, Canada and Britain. What long-term strategy should Wal-Mart adopt in China?
As stated earlier, Unifine Richardson has approximately one month of honey inventory left and it has to make a decision based on the available options presented by Harrington Honey. Analysis: Unifine Richardson buys about one million pounds of honey annually. The world supply of honey has decreased by about 20%. Currently, the company pays $1.08 per pound for the Chinese-Canadian blend honey. Harrington Honey provided UR with three alternative sources of honey: 1.
Kraft Foods Finds a Chinese Face for Oreo --Oreo localization in China 学院：外国语学院 班级：24150102班 学号：2012041501065 姓名：徐佳媛 Until the mid-1990s, Oreo largely focused on the US market - as reflected in one of its popular advertising slogans from the 1980s, "America's Best Loved Cookie". But the dominant position in the US limited growth opportunities and encouraged Kraft to turn to international markets. Oreo launched in China in 1996 as a clone of the American version.The China launch was based on the implicit assumption that what made it successful in its home market would be a winning formula in any other market. However,doing the same thing repeatedly and expecting different results did not happen in China, after almost a decade, Oreo cookies were not a hit as anticipated because of insufficient understanding of local preferences. By 2005, it controlled a mere 3% of the Chinese cookie market and the team even considered pulling Oreo out of the Chinese market altogether for the long-term losses.
Let me start this case study with a quote from the case: »The foreign impression is that the Chinese act as if they are in the driver's seat.« After carefully reading the case of the failed joint venture negotiations between Electrowide and Motosuzhou, it seems obvious that in order to succeed in a global economy, Electrowide would need to locate production in Asia – the fastest growing economy. So, Chinese companies indeed are »in the driver's seat«, meaning that the foreign companies, which want to enter the Chinese market, have to adapt to their culture in order to succeed there. Not only have to foreign companies try to adapt to the Chinese culture, but they also have to fully understand it. This is obviously not the case with the Electrowide's approach to the joint venture negotiations with Motosuzhou. Electrowide's three-person team to carry out the task of purusing a JV with the Chinese counterparts has a shortage on three areas: 1) business skills (none of them have degrees that would aid in international business relations), 2) language skills (only Ms. Morgan spoke conversational Chinese, but traditional Chinese society is male-centered, so her Chinese can be of little help) and 3) intercultural competence.