There are so many articles and information is presented about “Doing business in China”. Even some MNEs, which successfully operated in numerous foreign countries, failed in Chinese market, just because of misunderstanding Chinese perceived environment (The case with Barbie). It is definitely hard to penetrate in the nature of the host country business environment. The one way to solve this challenge is to joint with local company, a local partner can help the entrant to make understand local way of doing the business. This approach suits even more in countries with developing economy such as China.
Usually, the local businesses see the international industries as a threat, and this may pose a challenge even to the customers. There could also be a perception of the foreign countries bringing rejected good within the country to profit from the mass market. At some point, Wal-Mart was forced to shut down its stores in China for violating its local laws and later made to pay the fines. The cost of borrowing is also fast increasing in China as the government has continued to increase the minimum reserve requirement. Consequently, Wal-Mart may fail to get extra funding while in need which may end up affecting their expansion prospects.
First of all, the protection of intellectual property is weak in china, for that reason, many foreign brands were operated as company-owned stores or joint-ventures instead of franchises in the early stage. Besides, the Intellectual property laws are not implemented uniformly in china. Then, lack of strong management skills is another significant challenge. In addition, finding, evaluating and signing a qualified firm as local franchisees is difficulty for franchisors. Furthermore, the regulatory environment for franchising has evolved and improved in china, for instance, the ITA Franchising Top Markets Report (2016) pointed out that in December 2004, MOFCOM (Ministry of Commerce of the People’s Republic of China) issued new rules concerned the supply of franchising services in China which required that “a franchiser own and operate at least two units in China for one year before being eligible to operate franchises in China.” Finally, some franchisors have difficulty to adapt to local business environment and satisfy local customers’ need in a short time.
As Hong Kong was officially handed over to China in 1997, and is both independent from China as well as a part of it, the clash of the Chinese and Hong Kong governments and differences between the two are astounding. Although Hong Kong, as viewed by most, is technically China, the island’s government does not share the same reputation of political corruption. On the contrary, Hong Kong’s Independent Commission Against Corruption (ICAC), which began over 40 years ago, has succeeded in helping to transform Hong Kong into the international financial hub that it is today. Beginning in 1974 as a result of a corrupt police chief (Peter Godber), and focusing on police corruption, the organization was able to be as effective as it was as a result of its decision to pardon cases of corruption that had occurred before 1977. The police, who had formerly attracted members with the allure of getting away with corruption and individual gain, enforced their new anti-corruption law by giving the police who did want to adjust to a new political environment a second chance.
Not only have their traditions abutted Chinese business culture as powerful as its other cultures (Alford, 2000). Martinsons & Westwood (2002)Said in their paper that inspire of the regulating economical power of the people’s republic of China and the other overseas Chinese, they business practices are still left poorly comprehended. Most recent studies also indicates that the Chinese managers in many businesses are astonishingly have restricted themselves in using the information technology systems. This has lead to the development of the theory that explains the observed phenomena by comparing the Chinese and the western thinking after which the disturbing values. Other than this, the behaviours is considered in
Also, the encouragement policy of China government at the time motivated the fast development of Foxconn in China. The policy such as tax reduction, and extra regional benefit greatly lower the cost of production of the firm. This set up a potential space for the firm to explicit the labor without the supervising of the labor market. And China government at the time want to attract more foreign investors to settle their company in China, it has been turned a blind eye to many labor explicit case. And the local governments have lack of knowledge of
PESTLE on economy in China. China has emerged as powerful nation due to its market size, low cost and abundance of skilled manpower and its growth potential has given the required momentum to Chinese economy and business with foreign investors. China’s economic development has over years surprised the critics and supporters . The Chinese economy has impact on global growth , trade and investment and has direct consequences for every part of the planet. China has shed its communist image over years and is now recognized as integrated with other parts of world.
Zong accused that Danone had designed a trap in the JV agreement to win the control of both Wahaha Bbrand and the JV. Therefore, longterm of cooperation between these two parties did not build on more trust. In China, the legal basis through the business operations was uncertain, most of the businesses relied on trust which could be differentiate with the western contract based structure.In 1999,Danone and Wahaha applied an exclusive license agreement for the
Because of the very strict rules imposed on foreign companies in China, Netflix has had to face a double challenge: to respect the Chinese regulations and to satisfy customers as much as possible. In its domestic market, the streaming company’s main goal is giving an access to different movies and television shows which are sometimes updated daily or weekly to meet the customers wants. In China, each content is subject to control, making it impossible to provide an episode of the same series every Thursday of each week for example, as Netflix is used to doing in other countries such as England or Germany. However, this kind of censorship is not totally new to Netflix. Indeed, the company has already pixelated sex and nudity scenes in Japan because it was required.
Customer focus gradually from product quality and price control of energy consumption, frequency and quiet Technology. So Lenovo 's market position should be transformed to meet the needs of the consumers. Lenovo is the origin of Chinese create famous brand, the existing content can continue to exist, to support the strategic choice of Lenovo. “Protect and Attack” As the name suggests, this strategy combines both defensive and offensive elements. In defense, Lenovo attempts to establish China success, currently occupy the dominant position, China (and the world) before the attack.