Case Study Analysis Case Analysis Skills Activities

Questions: 1. Notwithstanding challenging business conditions in China, do you think Australian business needs to exit Europe and America and focus on Asia? Justify your answer. 2. How would you set about building relationships with Chinese counterparts in order to establish a business operation there? 3. Would it be better to invest in other Asian countries like India (with just as big a population)? 4. What are the best investment strategies for Australian companies in China given the above case? Answers: 1. The Chinese experience has given enough idea about how business should be done in these conditions. One needs to have lot of patience and cannot ignore the local way of doing business. Its almost a similar one in case of America and Europe where the over bearing green activists, rule against child labour and traces of chemicals makes a huge dent in the manner in which business is done in these Countries. All these barriers in form of guidelines actually slowed down a business activity in these two continents. Apart from the guideline barriers the other big factor is demand. Unlike Asia where the population plays a huge role in jacking up the demand, the European market is restrictive and can become stagnant after the initial round of euphoria. The Chinese and Indian business scenario is completely different. The demand is ever growing and a customer are much demanding and can choose the best from available options and hence is ideal for money for deal kind of objectives.Along with the huge demand and a growing economy the labour cost in China is lower than any of its counterpart in the west and hence manufacturing Industries can still mark their presence well in this region. 2. knowing the local norms and respecting them is the first step in building relationship with Chinese counterparts. Business operation is part and parcel of how the investors behaves with the local norms and culture as well as make use the available resource to learn, know and build a line of trust with people they deal directly and people beyond the direct interactions. These are essential to make the local feel safe, ownership and trying out attitude building (Christopher, 2000). The idea of being one with the general people is often considered as good step towards building confidence. These confidence building measures goes a long way in securing the customers attention and loyalty a well on a long run. 3. India like any other Asian Country again has lot of red taping and doing business is equally difficult. But the ever growing populations demand of products and service drives any new venture to sustain over a period of time. The new regime might well turn this red tapism into something of the past and make progress in all sectors to invite foreign investment. Unlike China, India policy is much more conducive as the democratic set up of the Country doesnt allow anything to be wished away and with a vibrant free press the scenario is much better than what China could offer. Within no time the investment scenario, policy making and overall market scenario might change and would be much more investment friendly. The burgeoning population and stable economic scenario along with the tendency to absorb economic shock therapy in form of new market oriented policies is something not seen anywhere else. People are resilient and Government policies are also considered to be moderate where every sector of market as well consumer is taken care of. On the long run doing business in India would be beneficial for every sector except for those segments where quick profit making is the sole criteria.Along with the free press which plays a big role in making Indian investment scenario much user friendly the ever increasing knowledge base and technical hands at offer is also going to be the positive point for future investment (Bloomfield, 2006). 4. The best investment strategies for Australian Companies in China given the above case would be to go innovative. The local requirement needs to be taken into consideration whenever any future investment is thought of. People in China are innovative in nature and are exceptional as far back engineering is concerned. Anything in manufacturing needs to be as innovative as the product itself would be. People have the knack of inviting anything which has local appeal and could be as innovative other Chinese products. But products which has local appeal and helps the economy and environment equally would succeed as in the case of Woods International. The best approach would be to go local and then expand in the ever increasing market. References: Bloomfield, P. (2006). The Challenging Business of Longà ¢Ã¢â€š ¬Ã‚ Term PublicPrivate Partnerships: Reflections on Local Experience.Public Administration Review,66(3), 400-411. Berger, A. N., Udell, G. F. (2002). Small business credit availability and relationship lending: The importance of bank organisational structure.The Economic Journal,112(477), F32-F53. Christopher, M. (2000). The agile supply chain: competing in volatile markets.Industrial marketing management,29(1), 37-44.