From Beijing Jeep to Asc Fine Wines: the Story of an American Family Business in China
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1. Was Beijing Jeep a success?
After the Chinese reform and openingup policy led by Deng Xiaoping, China attracted many foreign direct investment because China aims to increase their economic growth, infrastructure, technology and other industries. During that time, the only way a foreigner company could enter the Chinese market was through a joint venture and this is how Beijing
Jeep emerged in 1984.
It was a huge step that an American firm could extend their business to one of the biggest markets in the world, however we consider that Beijing Jeep was not successful in China, because during this period, the economy of China was not stable and…show more content… Since Beijing has only been successful under the supervision of the government and is not able to succeed with their own resources, we can conclude that Beijing Jeep itself is not a success. 2. What negotiation tactics did AMC use with the Chinese government? And ASC?
ASC faces new challenges as an American company operating in China and this goes hand in hand with reforming some of the Jeep models. The Cherokee Jeep is an example, a model already existing in the United States in need for reformat. Since the model is already known in the United States it is more convenient and time saving to import some materials instead of conducting a redesign in China. This is where the government stands in their way. The
Chinese government does not accept export of hard currency, which is necessary to import the products. To overcome this problem AMC had to use negotiation tactics to get the Chinese government on their side. AMC went for the straightforward, ‘cards on the table’ tactic combined with ‘doomsday’. ‘Cards on the table’ means stating your case open and clearly and hopefully win their