Although at the first they they gave up the company's operating philosophy in exchange for a part interests, in the end Google opt out of the Chinese market. 4. Why was Google subjected to so much more scrutiny than their competitors were in this case? Should they embrace this higher standard, or find a way to separate themselves from it? Because Google want to enter the Chinese market and make more profitable for the company.
The worldwide market share of Colgate and diversification could also improve by entering the Chinese market. Entering China will also lead to new job opportunities. On the other hand, the original product names did not test as well as other names in China. This led to product names being changed. Also the packaging had to be changed, which led to high development costs.
In addition, the fact that the US government has recently open doors to Chinese steel companies to operate businesses in the US, this may start to influence the economic environment of the US steel industry as well. Fluctuations in the value of the U.S. dollar also affect the steel industry. A strong U.S. dollar makes imported metal products less expensive, resulting in more imports of steel products into the U.S. Economic difficulties in some large steel producing regions of the world have lead to decreased local demand for steel, and thus steel products have been exported to the U.S. at lower prices. This makes steel products made within the U.S. more expensive than imported steel. In the social environment there has been a push towards going green and recycling which is very beneficial for the steel industry as steel is 100% recyclable.
Inflation affects how much UK branches have to raise or reduce the amount of pay each employee gets. This may lead to the company needed to let go of some employees. Indian branches also would need to alter pay, but wages in India can dramatically differ year to year depending on money flow. The recession decreases the companies in the UK wanting to lend money. Credit scores effect this drastically, if you have a bad credit score it is unlikely for UK Barclays to give you a loan or mortgage.
Since textile-mill was a labor-intensive industry, in more recent years, the search for cheaper production costs had begun to move the textile-mill industry to Asia. Secondly, the strong U.S. dollar had made foreign textile manufacturers products much cheaper than those from U.S. companies. In addition, the World Trade Organization recently had announced that it would ban its members from using quotas, which would further open the U.S. market to competition from other countries. So how would Aurora face the crisis, since its sales have decreased four years in row, and its price fell from $30 per share to $12 per share, how would Aurora solve its problems? Zinser 351, a new ring-spinning machine, was under considered by the management of Aurora.
He became impatient with the RCI percent return. By incorporating a higher advancement of technology, there should be a reduction in labor and worker cost. He was more concerned with the lack of assertiveness and competitiveness with the Chinese. Btzell considered pulling out of Shui Fabrics if the performance level did not increase. Global Leadership and Organizational Behavior Effectiveness (GLOBE) conducted a project in which data was collected from 18,000 managers in 62 countries.
Another option could have been to get out of China but that would not be for sales because Avon would be losing a lot of money. 3. What effects will the use of traditional retailing in China have on Avon’s overall marketing strategy? The effects of use of traditional retailing in China
By driving down the costs from their suppliers and overhead as much as possible, it resulted in some of the lowest prices possible for consumers, in which they kept at low prices all the time, as opposed to constant fluxuating prices with sales and promotions. All of these competitive advantages can be seen as reasons for Wal-Mart’s success in North America, particularly the US. This success model however cannot carry over into foreign markets without changes. There are many intervening factors that also should be taken into effect, such as laws and culture in foreign markets that can prove as large barriers for this same business plan, particularly in China. I believe Wal-Mart is not having the success it hoped for and expected in China because they got focused on the enormous market size, and lacked research into the market structure prior to market entry.
Other paradoxes like flexibility vs. stability; consistency vs. adaptability and unitary vs. pluralistic are also important factors which require attention of the HR manager. Since Molex is an American-based company which indicates a lower power distance. Therefore, in case of handling employees in the Asian countries like China who have high power distance, the staff may start confuse. For example, staff will be given a greater authority in handling a particular job, however, the normal Chinese practice is to have a hierarchical level of authority which may confuse the employees at first. Another distinctive difference is the uncertainty avoidance which will affect the way people work.
Globalization and Outsourcing The economic globalization strategy of outsourcing is more of a disadvantage to Canadians because of reasons like quality issues, losing jobs and transportation. The author’s interpretation of this image can be portrayed as a negative response to outsourcing. In a literal way it shows Santa Clause reading a story on Toxic toys that were produced in China right before Christmas. In a metaphorical way the source could be interpreted as Canada shouldn’t rely on China to outsource all their products in case something should go wrong, for example: toxic substances in toys. I agree with the perspective of the author, I believe outsourcing is more of a disadvantage to Canadian’s.