Boffo Toys Case Study Answers

Boffo Toys, Inc. is a rapidly growing company that makes extruded plastic toys, primarily aimed at the market of 7-11 year-old boys. These toys are action figures, and include both real and mythical characters. The business has been expanding rapidly, and Boffo has decided that it is time to build a factory in China. Almost all of its competitors are already producing in China, and management has decided that it is time to jump on that bandwagon.

Marlene Sampson, the CEO of Boffo, has been very successful, but she hasn't a clue how to begin working internationally. To get started, she decides to hire a consultant, Zhang Yufen, an émigré from Hubei Province in China, currently residing in the U.S. Mr. Zhang has been in the U.S. for 10 years and his primary business is helping U.S. companies that want to set up operations in China. Marlene calls Mr. Zhang in for an interview. He begins his work by asking all sorts of questions about the business, and products. He wants access to the company books, and asks about pricing and profits. All of this information is provided to him.

After an extensive analysis, Mr.

she receives an E-mail from Mr. Zhang. He says that construction is going well, but getting permits to run the business would be greatly expedited if Boffo were to make a small contribution to the political campaign of one of the government officials whom Marlene met during her visit. He tells Marlene that local elections are a new development in China, and that she would be helping American policy by encouraging a free and independent local election. And, after all, local government officials are providing her with great support that will ultimately make Boffo a lot of money. Furthermore, Zhang explains the concept of "guanxi." It means "relationships." Zhang tells Marlene how important it is in China to take care of your friends, and that if you take care of them; they will take care of