This website uses cookies to ensure you have the best experience. Learn more

Case Study: Beer Companies Investing In China

1098 words - 4 pages

What bureaucratic challenges do foreign companies face as they make investment decisions about China?The bureaucratic challenges to foreign companies in china are immense. The Chinese government is run by the communist party which creates a mired of problems for free enterprise businesses in itself. The provincial and mayoral governments have tremendous say on private businesses that open within their district. Some of these mayors run cities that is more populated than some small European countries so there influence on their province is substantial. The government divides their influence by developing an unstated hierarchy for private businesses. This creates an under current of private sector influence on the local economy, because if you are high on the influence scale you can bypass a lot of bureaucratic red tape. Since china is relatively a secret nation it's hard for outside investors to make decisions about their investments unless they have someone from within to help them navigate the complicated Chinese economy. This creates another problem because the Chinese government does not have western investor's best interest in mind when they assign liaisons or partners to western investors.. There are several agreements with the Chinese government that allows foreign investors to participate in their economy like Joint Venture (JV) and Wholly Foreign-Owned Enterprise (WFOE). These agreements have there ups and down offering foreign investors the opportunity to invest in the Chinese economy; however the Chinese terrain and infrastructure is still a major obstacle for foreign investors to navigate.Why do AB and other foreign brewers think the Chinese beer industry so attractive? Use Porters Five Forces Model to determine the attractiveness of the Chinese beer industry (see pages 51 - 61; as well as reviewing the Porter's Five Competitive Forces document posted under "Course Documents").Foreign brewers think the Chinese beer industry is so attractive because their economy is growing rapidly. China is becoming more and more industrialized every year. The Yangtse basin will become the largest manufacturing base in the world in a few years. China has the largest population in the world and with a growing economy that spells billions to be made by foreign brewers. The Shanghai Stock Exchange has grown from meager to the largest in Asia in just ten years. Foreign brewers know that the more the economy grows in china the more their product has a chance to sell and make a profit. The Chinese people are not heavy beer drinkers but the market is just so huge that it would not take a large percentage of people to turn a huge profit for foreign beer brewers. With there economy growing so rapidly its bound to create a market for western style beer with the population earning more money they can afford to purchase things besides essential items. Porter's five forces to competition would apply as such:Threat to new entrants-The Chinese market is being...

Find Another Essay On Case Study: Beer Companies investing in China

China - Case study

1889 words - 8 pages A.GeographicChina is the world's forth-largest nation. Located in Eastern Asia with Russia and Mongolia to the north, India to the southwest, and Vietnam and Laos to the southeast. China has a total land area of 3,695,500 square miles. Its capital lies at Beijing, while China's largest city is Shanghai. China boast some 14,500 km of coastline. Its climate is extremely diverse. It ranges from subarctic in the north to tropical in the south

Marketing Strategy in China – The case study of B&Q

2813 words - 11 pages Marketing Strategy in China - The case study of B&Q IntroductionB&Q the largest DIY retailer in Europe, entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based property developer (Murphy et al., 2006). Although B&Q does very well in Europe, Chinese DIY market is quite different from western markets in many aspects mainly

The kfc case study. human resouce problem in china

9772 words - 39 pages waiting for them.First of all, the period which KFC decided investing to the Chinese market, the Chinese government just opens the business opportunities to all around the world. But there is still some planned economy policy left in China. According to the foreign investor, although there is huge potential market waiting for them in China, but it also has some unstable problem or essential from many factors. Although China is a huge, high-level

Effects of globalisation case study- china

1159 words - 5 pages deterioration of the environment in China due to a loss of arable land as a result of economic development. An increased population growth in urban areas as people move to be closer to factories results in the clearing of large areas of land and a strain on resources. China, unlike many developed countries does not have extremely strict standards on the disposal of waste. Factories set up by overseas companies often create a lot of pollution and dangerous

China-Ethics and The Environment Case Study

1506 words - 6 pages Are We Problem PAGE \* MERGEFORMAT 1 China-Ethics and The Environment Case StudyAbstractAre We The Problem?"First of all, it is obvious when we examine the world's population problem that there are just too many Chinese" (Text, Year, p. 141). "At its founding in 1949 the People's Repulic of China had a population of 540 million" (IIASA, 2008, p.1). "Only three decades later its population was more than 800 million (IIASA, p. 1). "The U.S

Case study: electronic commerce and business - SHYT (china company in shanghai)

2562 words - 10 pages ;………………….……......126.0 References…………………………………………………..………..131.0 Company IntroductionSHYT is a branch of China Young Travel Agency located in Shanghai of China. SCYTS has, through 25 year's development, grown from a single inbound travel

Europe's leading telecom companies: overstretched and under threat (Case study 15.2, Richard Lynch, pages 534 – 537)

3888 words - 16 pages economy are cyclical and the slow down of the European economy between 1998-2001 had a major impact on telecommunications companies. This is well illustrated in this case study by the table of debt. The expansion goals of the large telecommunication companies are threatened by these fluctuations. For instance the goal of BT (British Telecommunications) to have all exchanges broadband compliant by 2006 was affected. The economic factor affects the

Ethics In Workplace Case Study

2630 words - 11 pages and newspaper interviews, which allowed the company to remain a trusted corporation in the public's eyes. This helped keep the door open for the corporation to heal once this incident had been corrected.Ethical Issues InvolvedThere are two main ethical issues involved with the Johnson and Johnson case study. The first ethical issue was responsibility. Johnson and Johnson accepted responsibility for the Tylenol poisonings and took the blame for

Destination Life Cycle Analysis of Hospitality and Tourism Dynamics --- A case study of Heng Dian Film and TV City Resort in China

3343 words - 13 pages and reliability of Butler's theory in a case study of Barbados. In China, there were also researchers using Butler's theories, such as Qi (2008), Chen (2008), to analyze the situation of tourist destinations.Figure 1 Destination Life Cycle(cited from: Miller and Gallucci, 2004)Butler's Destination Life Cycle theory has a clear description of each stage, and has been used worldwide in tourism researches. However, not all destinations development

Corporate Culture's Role in Employee Turnover Intentions: A Study of Fortune 500 Companies

3810 words - 15 pages findings of a multitude of prior studies, the researcher anticipates that this study's analytical results will indicate a significant relationship between strong corporate cultures and employee turnover intentions.Corporate Culture's Role in Employee Turnover Intentions: A Study of Fortune 500 CompaniesIt all begins with the corporate culture of a company. All companies have such a culture-a corporate way of life followed consciously or

The Study of Public Sphere in Modern China

3595 words - 15 pages implementation of the policy, more and more foreign companies choose to develop their business in China, and the culture exchange are more frequent compare to past. The so called “socialism with Chinese characteristics” that Xiaoping Deng applied achieved success in China, with the development of market economy in China, the Chinese society now have some characteristics of capitalist. The most important influential element should be the media. According to

Similar Essays

Case Study: Google In China

906 words - 4 pages Case Study: Google in China152Case Study: Google in China When Larry Page and Sergy Brin first launched the Internet search engine, Google; they did so with one goal in mind, to provide people searching the internet for information with the fastest, most reliable search engine. Because of their creativity and innovation, Google is one of the largest and most profitable Internet search engines available. With more than 150 domains worldwide

Google In China Case Study

1000 words - 4 pages analizan las situaciones, problemas y buscan las debidas soluciones, basadas en lo mejor que les convenga, sin afectar la ética, política y costumbres de las mismas.ReferenciasUniversity of Phoenix (2009). Closing Case: Google in China. Recuperado el 9 de junio de 2009 de metaid=e90d4e00-7a8a-4001-9b90-e49dd740e569&assetdataid=99ade168- 8581-461e-83e3

Multinational Corporations In China: Case Study

1056 words - 4 pages rate could be just a meaningless figure. From the capital-flow perspective, McDonalds seems to boost China economy by investing. Yet, most of the income gained by McDonalds in China is sent back to its original country, America. If the Chinese's consumption (import) in this fast food company is higher than the company's investment (export), China will then suffer a trade deficit and furthermore, the entire economy's health will be worsen. Second

Mc Donald's In China: Globalisation Case Study

1072 words - 4 pages rate could be just a meaningless figure. From the capital-flow perspective, McDonalds seems to boost China economy by investing. Yet, most of the income gained by McDonalds in China is sent back to its original country, America. If the Chinese's consumption (import) in this fast food company is higher than the company's investment (export), China will then suffer a trade deficit and furthermore, the entire economy's health will be worsen.Second