An example of this is China. They realised that they may need to import fossil fuels from the Middle East in the future so they have started to build good relationships with countries from the Middle East. Although they did not have any long-standing strategic interests in the Middle East they realise that the relationship between them and the region where most of its oil comes from is becoming increasingly important. One of the key components to them forming good relationships with the Middle East is by cultivating with Saudi Arabia. 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.
1. A) What are the key success factors for Electrosteel? Quality, Reputation, Workers Loyalty, Expertise, plant layout that increases throughout times. B) Is international expansion a good idea? Yes, competitive forces in India will soon become immense, and the market will definitely become more fragmented with the introduction of country liberalization efforts due to WTO, in addition Electrosteel comprises 90% of MS which is not sustainable in such attractive market.
We thought that Product Innovation was the most important key success factor along with quality, and global strategy. We didn’t think that cost competitiveness was that important because Nike, Under Armour, and Adidas aren’t a best cost provider in fact they seem to be a differentiated provider. We believed that Under Armour was better than the other companies in product innovation because of all their advanced moisture-wicking fabric. Global strategy was also really important to us because that company has to focus on other countries besides the one that it is in. And with Under Armour struggling with their sales revenue in foreign countries we gave them a nine compared to Nike that we felt was a ten because a lot of their revenue comes from other countries.
(n.d.). Retrieved from http://keystone-xl.com/about/jobs-and-economic-benefits/ The Keystone Pipeline Would Create Thousands Of Jobs - Forbes. (n.d.). Retrieved from http://www.forbes.com/sites/realspin/2014/02/07/the-keystone-pipeline-would-create-thousands-of-jobs/ Triplett, T. (2014). Keystone XL Clears Final Hurdle?.
has doubled revenue and has grown diluted earnings per share at a compound rate of 15%. The company returned over $15 billion to shareholders through dividend payments and share repurchases. NIKE, Inc., forecasted to deliver $30 billion of revenue by the end of the 2015 fiscal year. Estimated to be at the top end of the $28 billion to $30 billion range to be shared for incentives (Investors, Nike 2014). In addition, the future value of revenue is $36 billion in revenue by the end of 2017 fiscal year.
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?
Demand for such vehicles can not be designed based on the jeep AMC existing, and the vehicle as desired from the Beijing Automotive Works (BAW) cost at least a $700 million. BJC and the AMC do not have the amount of money like that, and then try to convince the AMC Chinese to produce the new vehicle type Jeep Cherokee. It appeared that after convinced, the Chinese partners agreed then changed objectivity AMC began selling the cars to get money and selling the kits to get money. Appears a new problem where BJC can get foreign exchange for these kits. According to the rules when a number of foreign exchange in large numbers required a special license meanwhile BJC had never discuss about this to the Chinese government.
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.
My short-time internship experience in Bank of Nanjing gave me the chance to know about how the investment-banking department operates, and it interested me. However, the investment banking industry in China is still immature because of limited talents and low efficiency of resource allocation; few investment banks are actually making profits. I believe that if you want to learn, you have to learn from the best. Therefore I plan to stay in United States after graduation to work and gather experiences. Even though the Chinese market is not mature right now, yet nobody can deny that it has enormous potential and opportunities.
This makes it difficult to know for certain what exactly what went wrong and why. Any analysis requires reliance on speculation and raises as many, if not more, questions than it answers. It is still worth looking into because it shows some important points that other companies can learn from. Background Caterpillar has had difficulty establishing a position in China comparable to its position in the rest of the world. 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.