consulting services. The lack of these services has inhibited the ability of Chinese firms to internationalize and to close the gap with multi-national enterprises (Nolan 1999). Although market liberalization has brought about benefits to Chinese consumers by providing more choice, for Chinese firms it has meant that they have had to find ways to Compete with foreign competitors in their own backyards. Perhaps there is no Greater evidence of this than in the food retail sector. The likes of retail giants Walmart and Carrefour have made significant inroads into the Chinese market.
Liuyang is an already established brand. Also, there’s scope for innovation and improvements, it has a growing revenue as well as lesser injuries. Sunset or rising industry? Political Factors: In China, Communist party has the real monopoly in political power and the local government has economic power decision (Khanna, palepu, and Sinha, 2005). As the initial capital requirements were relatively low, government started encouraging private sector units.
In many countries, employers are paying bribes less frequently and in relatively smaller sizes (as a share of income) and they view corruption as less of a problem for the operation and growth of their businesses. Since corruption is becoming more significant problem associated with the development, an even more important role is played by monitoring corruption. This is the big advantage for the European and national economies in transition, monitoring has shown that policy reforms can have a significant impact. In the last few years there has been significant economic growth and corruption has decreased. Major role played by personal qualities, strong leaders are needed to develop and push forward the reforms.
Tourism helps to improve the economic development of the destination,in china the contribution of tourism industry more than GDP contribute ranges 1-2%(UNWTO,2011;Lei,2008). By the rapid development of national economy, the stable growth of China 's aviation industry, but compared to the mode of transportation of railway and highway is still low(Lia;James,2009). In 2005, the civil aviation headquarters allows private investment.It is the policy to break the tradition of the Chinese market, promote the development of low cost airlines model( Wu, 2005). Spring 's airline main customers are from travel services. In order to be the lowest fare, using the same type of aircraft to reduce maintenance costs and no free airline meals etc (Yang 2007).
China is the world leading car producer at 24.6%, this gives China power over other countries and companies, allowing the Chinese government to retain bargaining power by imposing specific entry restrictions. China’s government only allow entry of company’s if they are a joint venture (Cumbers, 2011), this way China retains at least half of the profit, showing how power creates a hierarchy and how the economic power is maintained. Chery QQ3 is an example of localisation, as the hybrid model adapts to the Chinese’s cultural and economic needs by producing energy efficient low cost cars, costing less than $5000, applying to the Chinese market. Chery Jaguar Land Rover is an example of strategic coupling as East Asian firms obtain powerful strategic positions within the global market place. Since industrialisation, the state’s role in most East Asian countries is being minimized as the power executed from these global firms continues to shape and control the global economy.
Business Culture in China For any foreign country to be able to succeed in China, first they must understand the culture and the people of this country, which has become a industrial giant with a growing economy. But to be able to understand how Chinese do things you need to go back to Confucius time, since Chinese values go way back to this era and this is way they are things such as “guanxi’’ and the fear of “losing face” in a business situation. China doesn't have a good reputation when it comes to business ethics, according to John Hulpke and Cubie Lau there are some factors that contribute to the ethic problems China currently face, the fact that Chinese tend to do business based on relationships rather than a free and open competition
3. Stage three: 2001 – present – The acceleration of overseas expansion activities in the form of mergers and acquisitions. It is said to believe that such an acceleration of internationalization can be partly explained by the perceived thought of foreign competition in China after China’s entry to the WTO in 2001. In 2004 alone, Chinese firms entered into 13 cross-border M&As, including Huawei. The approach of the Chinese authorities in relation to the internationalization of Chinese enterprises has drastically changed over time.
For Westerners living in China, they grew up in a different culture from the locals here. Any Westerners visiting China should remember that China have many potential problems such as patience, respect and practice. From the fishbowl discussion and personal encounter, people in China does have patience problem. Maybe it was due to the China manpower and economy that they have so many competition around the country that they have to make full use of what they have and not waste any time. This could be linked to why there are so many car honking every day in China.
A slow US economy critically affects Starbucks and will have an impact on revenue and profitability. The gross and disposable income of the company will be greatly affected in case of a slow United States economy. The vulnerability can be mitigated by spreading risks to other countries by having increased stores abroad and considering the quality and pricing strategies in other countries to ensure Starbucks makes pricing consistent with the countries’ ability to purchase. This is evidenced by the low demand and sales in China because of high pricing of Starbucks’ products making the company vulnerable to the market loss to McCafe (Thompson & Martin, p.
Advantage and disadvantage The advantage of the mixed market system is that China has open is market towards foreign business therefore creating job opportunities for their people by doing so it has improve their society and the style of living. Besides that, those citizen who works for the foreign companies will incur a percentage of taxation. This taxation is then uses by the government to develop the country by improving their infrastructure such as roads, telecommunications, and public transportation. Apart from that, China is now the 2nd largest economy in world (Jerry w; 2011), (Nation Master; 2003-2014). The disadvantage that China will face with this mixed market system is that many hundreds of millions of people still remain poor because most of whom live in more isolated interior regions of country away from prosperous coast; therefore creating a gap between rich and poor.