Global Expansion And Background Information

China is the country with largest population. Not only that china is the largest media market in the world and has the world’s largest online population. We can also say china now a days run its business based on web or ecommerce. Moreover, china is one of the world’s top exporters and is attracting record amounts of foreign investment. Here we discuss something about china now let’s begin with macro approach.

As the modern day economy continues to grow, more and more discussion are emerging revolving around what are the factors that led to the successful economic growth in some countries and one country that has been gaining researcher’s interest is China and the development of Beijing from a third world country in the to a developed and Newly industrialized country today.

The attached article discussed the risks and rewards of China going global. Critically analyse China’s international expansion. Also recommend what China can do to generate further economic growth for both its local economy and discuss how this can contribute to the global economic growth.

Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely

In the few recent years, China has replaced United State to become the world largest economy. This Economic situation has opened an enormous number of opportunities for most industries to expand their operation from domestic market to international market. Shanghai, which is the China’s largest commercial and industrial city, focuses on 6 major industries which are information technology, automobile, large-scale electromechanical equipment, petrochemicals, heavy manufacturing and biopharmaceutical products (http://en.people.cn/200207/20/eng20020720_100055.shtml). With the virtually unlimited well-educated labour resources and the unique international location, Shanghai is

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

The process of globalisation in China has been a rapid one. China’s exponential growth since the fall of Mao has lead to increased international influence – with China now operating on an international scale.

WFM is trying to develop a strategic plan to grow their business in an extremely competitive market. They are searching for ways to sustain their strong financial and cultural capabilities without losing revenue. Societal trends are shifting towards a healthier and environmental lifestyle, which is substantially affecting the food retail industry. To keep up with these societal trends, grocery stores are incorporating organic and healthier food products into the stores. This poses as a threat towards WFM, as their value proposition is substantially losing its worth. WFM must assess the company from an internal and external perspective in order to determine if expanding their locations into Canada will be worthwhile. There is a variety of risks that the company must assess prior to implementation. If WFM decides to expand through a slow process, there is a possibility of their competition dominating the industry. In addition, WFM must understand that this expansion will require extensive capital and a new logistic/distribution strategy. The plan that WFM decides to instill must keep their current organizational culture consistent.

China’s success in consumer electronic manufacturing can be traced to the creation of special economic zones in the early 1980s, intended to increase “foreign capital and boost exports as the means to integrate regional and global economies” (Chan and Seldon 2013, 103). This capitalism was a sharp departure from the previous Communist based economic policies that dominated the country for decades (Ya and O 'Donnell 2017). The Shenzhen Special Economic Zone (one of four) was established in May 1980 adjacent to the border with Hong Kong, which was experiencing its own economic boom (Ngai and Chan 2012, Ya and O 'Donnell 2017). Manufacturing in the Shenzhen Economic Zone grew exponentially after the Chinese government began offering

According to Zheng, Sun, Qi, & Kahn, (2014), "China 's coastal cities in the Eastern Region provide excellent access to the global market and are the most attractive location for private manufacturing firms" (p. 711). With China 's growth, a significant issue in this region is a labor scarcity, which is increasing the cost of labor. Inland cities are currently attractive for manufacturers because of labor cost and energy availability (Zheng, Sun, Qi, & Kahn, 2014). For example, inland cities possess an advantage to other regions because of the availability and price of electric power (Zheng, Sun, Qi, & Kahn, 2014). Additionally, local inland governments are providing incentives to offset some of the cost infrastructure issues for companies building factories. Although,

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

China is becoming more westernised, particularly the ‘cosmopolitan’ city of Shanghai, where demand for Western products is increasing rapidly as disposable income rises in line with China’s strong economic growth. Michel’s wanted to establish a foothold in the market at an early stage to demonstrate a long-term commitment, which has been identified as essential to compete successfully in the Shanghai market (per Tim Harcourt, Austrade Chief Economist).

Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):

The story of Shenzhen always begins with lyrics from a song: “In 1979, an old man drew a circle at the South Sea of China” written by Jiang Kairu (“A Story of Spring”). The old man, Deng Xiaoping, still enjoyed a prestigious reputation among old generations because of opening China to foreign investment and the global market, and supporting the market economy. If Shenzhen is the circle, then for many people, Deng is the designer that drew it. As the first special economic zone established in China, Shenzhen developed from a small town in Guangdong Province to a metropolis with more than fifteen million people. The sudden increase in population from different areas makes Shenzhen a diverse and vibrant city in China, and it ranks 22 in Global Financial Centres Index, even above Beijing (“GFCI”).

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were