Asimco Case Analysis

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Asian Strategic Investments Corporation (“ASIMCO”) was founded in China in 1994 by Jack Perkowski who had worked on Wall Street for 20 years. By 2002, ASIMCO had become one of the largest automotive components manufacturers in the Chinese automobile industry, and by 2008, it had established 17 manufacturing operations in 10 provinces in China, as well as regional offices in the US, Japan, and England (Wong, 2009). However, the company encountered management problems in the early stage. To break through the impasse, ASIMCO replaced senior management staff with “New China” managers and introduced its Leadership Development Programme (“LDP”) instead of the traditional succession planning system. This essay will attempt to describe the logic…show more content…
Nevertheless, problems might be encountered in localizing and developing its “New China” managers internally. Above all, to achieve the goal of becoming a global leader, the company should ensure its new leaders are competent in the competitive market outside the world. At ASIMCO, the majority of local managers do not have adequate English skills, while the company has a global ambition of generating 50 percent of sales from customers outside of China. Secondly, managerial talents who are both proficient in both worlds are limited in the country in spite of the increasing number of MBAs and Chinese returnees from abroad. ASIMCO needs to compete with Chinese companies who want to be global and multinationals for managerial talents in the labor market. Thirdly, the company may confront the possibilities of their managerial talents being poached by other companies because of the limited managerial pool in China. Even to ASIMCO, their “New China” managers were mostly from other multinationals such as American Standard, Daimler Chrysler, General Motors and Toyota (Wong, 2009). Therefore, retaining their managerial talents would be a significant human resource issue in the organization.
In conclusion, ASIMCO’s success in developing its own “New China” managers conformed to the trend of operating business in China to foreign investors. This essay explained that compared to expatriates and local managers from SOEs and POEs, “New China” managers who had exposure to
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