More and more companies are doing business in China due to the lower production costs. When doing business in a different country, they could have some policies and regulations that are different than the ones in the United States. They are many officials in these countries that will take a bribe in order to ensure a fast turnaround time in order for your company to receive a license. The Foreign Corrupt Practices Act of 1977 (FCPA) was empowered by the United States to investigate allegations of bribery anywhere in the world and are stepping up their activities in China (Roberts 2010). Technically, China does have some laws against taking bribes but there is a fine line between bribes and gift giving.
This in turn means that if the products are defective and not up to standard then they could damage the relationship with the Chinese department store. Another potential problem that may result from accepting the Chinese department store's order is that the research and development centre for the product line is based in the UK. This means that there problems could arise if there is a break down in communication between China and the UK, for example wrong orders could be received in China which would be particularly problematic with the average delivery time from factory being 21 days, 11 more than the UK factories. Therefore this means that these problems could be much more costly than if they happened from the UK factories. (8/10) Andrew Mitchell believed that the best solution to resolving the dispute over the introduction of new technology was to close the UK factories and move production to a purpose built factory in China.
Hiringthe foreign workers may interfere with the policies of China¶s political and legal environment.Prior to Riordan¶s plans to expand the facility in Hangzhou and hire additional foreignworkers, the management should consider the political and legal climates of China to eliminateinterference with the goals of the company. China is a communist state but embraces a freemarket economy (Hodgetts, Luthans, & Doh, 2005). Presently the political environment is stablein comparison to Latin America or the Middle East (Hodgetts, Luthans, & Doh, 2005). However,Riordan needs to investigate thoroughly the legal and regulatory aspects of expanding the facilityand hiring foreign workers in China.The legal and regulatory environment in China needs investigating. Planning to expandthe Hangzhou facility must be approved by the government.
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.
Chick-fil-A is affected by numerous external forces which can challenge upper management’s ability to make Chick-fil-A one of China’s best quick-service restaurant”. Through intense strategic planning, based upon their vision, mission and corporate values, Chick-fil-A will be able to establish a unique position in a very competitive industry in China. The corporate purpose of Chick-fil-A, “To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A”, their commitment to family and the community, and their sound business decisions, will make Chick-fil-A profitable and fast growing quick-service restaurants in China. The fast food restaurant industry, which includes fast-service and fast-relaxed restaurants, is highly pieced with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees.
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.
American Intercontinental University Unit 1 Individual Project MKTG 205 – Principles of Marketing March 7, 2012 Abstract In this paper I will identify marketing environment forces that could influence a locally owned restaurant. I will further discuss strategies to overcome obstacles and to capitalize on opportunities that will arise from these market forces. Market Forces Introduction Many things can influence whether a restaurant is successful. Poor decisions can lead to catastrophic failure very quickly in this type of business. Management must be aware of these things in order to offer their product to a customer at a reasonable price if they want to stay in business.
It also shows that there was a miscommunication between the HI and Erih T as HI took the task as a long term plan and gradual change. The Chinese government and Erih T expected things to happen quick and revenue generating.
While China have been doing this the countries In the Middle East with the oil have been trying to shift away from having a customer base from over dependence on the Western market and so they have been looking at rapidly growing markets like China. Another example of how a good relationship leafs to a good supply of energy is the case of the US and Saudi Arabia. They had a symbiotic relationship, meaning that they depended on each other, but in the aftermath of 9/11 their relationship has become increasingly strained. This is because 15 out of the 19 hijackers were of Saudi nationality. However, they need to have a good relationship so they can both survive as Saudi Arabia need the money from exporting and the US need the energy.
The Mongols had foreign administrators in China because they did not trust any Chinese person to be left in charge therefore foreign people were used. While in the Middle East the Mongols felt that leaving the Persians to have some charge would be the best for the people and result in benefits. Along with similar and different political effects of Mongol rule, there were similar and different economic effects of Mongol rule on China and the Middle East. The economic effects of Mongol rule on China and the Middle East were similar in that both were forced to give up money. In