Electrowide wishes to sell their equipment to Motosuzhou hoping that it will be able to be more successfully distributed throughout the world and across automotive industries, especially to those in China. However, the first few weeks of negotiation was spent on small talk and sightseeing, not business relations. The US team made up of Tom Sherman, Barb Morgan, and Mark Porter, were more interested in sight seeing and late night partying than getting down to business. At one point, Tom even began to skip the meetings all together. Barb took notes during the meetings and made several observations regarding the Chinese teams mannerisms, which may have been false.
In order to grow its operations China, Caterpillar decided to take a route that has proven successful for many MNCs operating in the PRC and use M&A rather than build things from scratch. After looking around, in 2011 Caterpillar proposed the acquisition of ERA Mining Machinery and its subsidiary Siwei for $886 million. ERA Mining Machines (ERA) was a mining machinery firm in China that was listed in Hong Kong and was the result of a reverse merger. While Siwei, ERA’s wholly own subsidiary, had always been a manufacturer of mining machines, ERA was a neophyte in the industry. ERA had previously “acquired” Siwei through a reverse merger.
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.
Competitive advantage Awwad states (2013) that competitive advantage as the asymmetry or differential in any attribute or factor that allows a firm to serve its customers more effectively than others and hence to create better customer value and achieve superior performance. To have a competitive advantage, company must create an edge over competitors. In the aggressive business world, every advantage counts to establish business in the top of industry Business Dilemma The Broadway Cafe has been in business since 1952 and has never had a single competitor in the neighborhood. One of your employees has heard a rumor that Starbucks might be opening a store a few blocks away. Your staff is worried and is looking to you to provide reassurance that the competition will not affect your business.
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.
Gap Analysis: Riordan Riordan Manufacturing opened a production facility in China. Because it flourished, Riordan's CEO wanted to add another facility. By adding another facility, Michael Riordan hopes to provide the company with additional international opportunities. The competition in China results in a lack of skilled labor; however, labor from nearby countries is available to Riordan Manufacturing. Using workers from these other countries requires Riordan Manufacturing to consider cross-cultural issues.
Just a few years before this document was written such events as the Massacre at Wounded Knee happened, I believe this was just too fresh in the minds of government officials that they didn’t want to risk having another situation similar to this with the Chinese. There were some very relevant points to be considered such as the Chinese were only contributing their wages to society if it was absolutely necessary for their survival. They would live in the worst of conditions and eat as little as possible to try to save as much as they could to take back to their families in China. This is a very real problem because they start to become leeches, for lack of a better word, and they put none of their wages back into the US economy. This could in turn hurt the economy if too many of the immigrants were living this kind of
Still other cultures critics and citizens groups in some countries say that it is arrogant to simpleminded to assume that American culture is “conquering” the cultures of countries around the world. (Johnson, June. Global Issues Local Arguements 2014, Pearson Education) It is not simpleminded to think and plainly see that China, while still communist, adopted a capitolism mindset when they started to allow capitolist companies to open manufactureing plants within China, but why the American companies left for China is for another paper. A better example is McDonalds and since McDonalds has grown globally, and it has been introduce to almost all of the largest populations’/cultures.
Article 25 says that “The state promotes family planning so that population growth may fit the plans for economic and social development”, and Article 49 states that “Both husband and wife have the duty to practice family planning”. In fact, the constitution cannot enforce jurisdiction directly in China, so the government has published many treaties, rules and ordinances to execute this policy, and finally in 2001, there was a law for family planning. However, as there is a serious decline of newborns and the population growth was slow down, China has lost benefits because of the large population. This means that the labor cost is gradually becoming higher, and the productivity of the whole country is a slowing down. Also, the aging society has become a big problem in China, which is only a developing country.
A main problem Timbuk2 is dealing with is their customers being unsatisfied with their products being produced and manufactured in China rather than in the home manufacturing site of San Francisco. Loyal customers of Timbuk2 are concerned that the bags made in China will not be of the same quality as the bags made in San Francisco. With customers having concerns, this could reflect the quantity of bags being produced and profit. Another main problem Timbuk2 is dealing with is the complexity of the machinery that is going to be used; this means there will be an increase in labor costs as well as an increase on the purchasing price of the bags. Timbuk2 is handling the problem correctly by making sure that the bags are being made in China are up to the standard of the bags that are made in San Francisco.