A Chinese Technology Company For Sale

1002 words - 4 pages

MGT4570Global EntrepreneurshipCase studyQI-TECH: A Chinese Technology Company for SaleName: Choi Ying KaiSID: 06523393Date edited: 11-11-2007Case background:QI-TECH, a Chinese manufacturer of precision Coordinate Measurement Machines, is a joint venture established by Indiver BV, a Dutch aircraft engine manufacturer and a Chinese state-owned enterprise QQMF. Looking for a strategic exit, Indiver BV, which holds 50% of QI-TECH, must negotiate a sale with its Chinese partner and a potential buyer, Brown & Sharpe. For this purpose Roger Kollbrunner, the Business Development Manager at Indivers BV, has to develop a viable deal structure and negotiation strategy.Questions:What are the objectives of different parties on the sellers' side? Specifically, what are the objectives of Indivers? Of QI-TECH's local management? Of QQMF? Of Roger Kollbrunner?Below we state different parties' objectives:Indivers initially expected at least a 20% annualized return on the investment in QI-TECH. However, QI-TECH currently failed to deliver adequate return (11%) and Indivers lacked the capabilities to further support its technology level and marketing network. Therefore, they are looking for a strategic exit to retrieve capital yet find another good-fit partner for QI-TECH.QI-TECH's local management was looking for a future partner that understands Chinese management style and can get along well with them. They worried the new partner might impose their foreign management style particularly with the loss of stakes of QQMF.QQMF were seeking for further support in technology, marketing know-how and capital from their new partner, in order to improve their operation efficiency and financial outlook. This was because, according to the guidelines of the Communist Party's latest 5-year plan, Beijing could force a major restructuring or shutdown on QQMF if performance is unfavorable.The sale is part of Roger Kollbrunner's job in managing some portfolio of Indivers to achieve higher overall financial return. He decided to sell QI-TECH to exit and find a stronger CMM partner with stronger CMM technology base and marketing network.What is the value of Indivers' stake in QI-TECH?Indivers held a 50% stake in QI-TECH, i.e. 50% of its book value in 1998, $3.266m, which is equivalent to $1.133m.What negotiation strategy should Kollbrunner and Li pursue in their negotiations with Brown & Sharpe (the potential buyer)? What price should they ask for?They should pursue an interest-based bargaining, i.e. maintain a cooperative attitude and strive to create mutually beneficial outcomes. Since the two parties have different objectives toward joint venture, they should listen to each other's expectations on issues like ownership transfer, technology transfer, manufacturing and marketing assistance as well as management style adopted before deciding on the sales price. It would be unwise to use soft or hard negotiation as both sides' bargaining powers are comparable and pleasant...

Find Another Essay On A Chinese Technology Company for Sale

Technology and Marketing Information Systems for Endless Sound Company (Imaginary Company)

600 words - 3 pages Endless SoundThe company I have decided on is called Endless Sound. We specialize in custom made guitars. Our guitars are unique and made exactly how the customer wants it. We also have pre-made guitars setting out on display and people may buy them if they desire. We have a lot of competition in this market. There are music store on every street and in every city.Marketing InformationThe 2000 guitar database website has a list of the 2000

Business environment analysis for a tomato company

2367 words - 9 pages insects from the crops, sometimes they need specialists to help them to improve the taste of the products. The nutrition for the tomatoes relies on technology because it is a soil free cultivation. The manager is the owner of the business he makes the daily decision for the business and he also plans the future for the company. The company distinguishes itself by providing the customers with high quality goods and JIT services. These are the unique

Marketing Plan for a Cosmetics Company

5875 words - 24 pages Marketing Plan for a Cosmetics Company EXECUTIVE SUMMARY.            CosmoCosmetics.      1389 Sunshine Ave.      Fort Lauderdale , Fl 34587            CosmoCosmetics has decided to create a new foundation make up line for African American women exclusively. We believe there is a niche for this type of business since no make up brands specialise in this target.      CosmoCOsmetics would be the exclusive manufacturer that sells to

A good company for sustainable development

1351 words - 6 pages A Good Company for Sustainable Development Introduction Business sustainability is a way to pursue business by optimizing utilization of resources, reducing the impact on the environment without compromising on product quality, competitiveness, profitability and company’s long term goals. There are still many businesses which do not take sustainability into consideration and hence destroy the environment

Marketing Strategy for a New Company

573 words - 2 pages Marketing Strategy for a New Company Introduction I am making a marketing strategy for a non-existing Service. The service is going to be unique and very broad in the region of car services such as garages, repair and modifying services, selling cars and parts, and even entertainment including car shows and racing once or if the company expands. The service will also include a bar or social room. The service that will use the

Business Strategies For A Media Company

1377 words - 6 pages Business strategies and opportunities in the global T.V. industry for Aston Media Ltd S.U. Business Consultants.Report author: Sapheer Ullah(Bsc hons.) Date of submission: Table of contents: Summary Introduction Summary The objective of this report is to select a generic strategy most suited to Aston Media. In order to develop such a strategy we need to develop a concise analysis of the company in question and the environment it operates in. It

Ensuring Success for a FMCG Company

3322 words - 13 pages Introduction Within the fast evolving and highly competitive business environment that is today, new businesses will need to fine tune the processes undertaken which help in the overall success of the company within the business industry. FMCG is the abbreviation for ‘fast moving consumer goods’. FMCG Companies manufacture retail products that have a relatively short shelf life because they have a high turnover rate or because the product

Marketing plan for a Telecommunications Company

1990 words - 8 pages meet the overall business objectives. Marketing has a key role to play in strategic planning, because it is the job of marketing management to understand and manage the links between the business and the "environment".In our survey we tried to find out the link between different stages of developing a long term marketing plan. For our studies we have selected Sri Lanka Telecom Ltd. Detail analysis of the company and the telecommunication industry

Accounting for Compensation at a Company

835 words - 3 pages $166,667 2010 Compensation expense $166,667 Discussion FAS 123 was revised during 2004. For public entities that are not small business issuers, the effective date of FAS 123(R) is June 15, 2005. FAS 123(R) 74 states that all public entities that used the fair-value-based method for either recognition or disclosure shall adopt this Statement using a modified prospective application. Under the modified prospective application, FAS 123(R

Marketing communication strategy for a shoe company

2939 words - 12 pages ".WhatThe fabulous prize is a ten days trip to one of the major adventure places all in Australia.WhereThe places are going to be selected based on the company image. Thus, the place has to be Within the Australian Territory and it has to have an extreme adventure and extraordinary recognition in order to make it attractive for our customers. For Example, a trip to the Australian Outback, Skydive in Cairns, Scuba Diving in the Great Barrier Reef and so

Entrepreurship - Hung Fook Tong, A Hong Kong based Chinese Herbal drink company

3962 words - 16 pages products, I have chosen Hung Fook Tong ( HFT) for my analysis assignment. Found in 1986, HFT is a large herbal tea enterprise with chain stores, manufactories of health products and bottled herbal drinks. It is determined to devote itself to the search for a perfectly natural path to health for the benefits of mankind and to hand down the fine tradition of Chinese herbal application.Coincidentally, one of my friends had previously worked at HFT during

Similar Essays

Leadership Selection For A Major Consumer Technology Company

1736 words - 7 pages includes identification and clarification of the leadership traits that are required for an effective leader. The second part considers the leadership styles and the skills required in a major consumer technology corporation. The third part identifies the importance of a leader following and communicating the vision of the corporation to employees and setting a tone of his leadership approach. The next section considers the necessity for a leader to

A Review Of Nirvana For Sale

886 words - 4 pages Nirvana for Sale by Rachelle M. Scott is an anthropological investigation into the intersection of wealth and piety in Thailand Theravada Buddhism. Through ethnographic methods, the book seeks to describe this relationship in a historically situated context. Thus, the book is concerned with cultural praxis within the context of religious discourses about wealth and piety. As a piece of ethnography, the work is competent, but draws little

Capitalizing The Costs Of Developing A Software Program For Sale

1272 words - 5 pages engages in the sale of products to consumers with high credit risk (Whittington & Pany, 2012). This practice is not a sound business practice and is reflected in this ratio. The decrease in the return on net worth is disquieting as well. This ratio measures the efficiency of the company in its efforts to maximize its profit earnings from the standpoint of a corporation’s most vital constituents, the shareholders (Accounting for Management, 2011

This Is For A Chinese Culture Class

2395 words - 10 pages single center of authority, there was no clear standard for the larger fellowship" The very idea that Chu wanted to centralize the fellowship shows that there is a larger dialogue taking place.It is this dialogue that must be at the very heart of the Confucian fellowship. It is also the area for which Confucian Discourse was written. Showing that in the past it was quite easy to overlook this part of the Confucian record. Yet this may be the most