Taming the Dragons - Cummins in China

Key elements of the first wave of LE's international ventures are: domestic operations accounted for 85% of the worldwide production and nearly all new product development until the late 1980's, universal application of the "incentive management programs", and in general the corporation paid little attention to there international divisions. However, as of 1996, Lincoln re-organized its international ventures by naming a president for each of the five regions, this is a demonstration of a new emphasis and focus on the international ventures from LE. In additional to the CEO having a planned oversight into the expansion there will be council consisting of each of these presidents to plan, integrate and implement global strategies. The compensation for these presidents will also include interregional cooperation. Both of these efforts address key Lincoln weakness from there prior international ventures of: "sink or swim" corporate attitude and interregional destructive competition. One final item is that Lincoln realized that in the second wave of international expansion true understanding of a country/culture is as important as technological skills.

This validates outsourcing is the biggest winners due to foreign companies like GM, primarily focusing on sourcing profit and growth. Meanwhile, the American believes by exposing China will portray the impacts the U.S. In March 2011, the American Chamber of Commerce in Beijing released a survey complaints in regards to the new regulations restricting their world. Even, AmCham chairman Ted Dean was quoted at a press conference, saying "American companies are doing well, and American was concerned about in certain cases the current regulatory environment and in other the trend contour for the regulatory environment. That's diplomatic language, for being corralled. Jeffrey Immelt chairman and CEO of GE, criticized China as being hostile to multinational companies and said "I really worry about China, in the end, I am not sure they want any of us to win, or to be successful." Immelt also told a group in Shanghai: "I look at my American colleagues, the hardest thing to do in China is getting a Win-Win relationship. In collusion: Michael Dundee (2011) has accomplished a superior job relating and evaluating the importance and complicated business, identifying the story of GM in China. Through experience Michael Dunn understood the depth of the global auto industry. As globalization, increased rapidly it was imperative to

Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese

The risk of losing this joint venture is a major concern as Richmond Engineering has been working on entering the Chinese market since 1984 and if this deal is tarnished it is hard to say how long it could take for a third chance to come along. Cultural elements are a key element that influences international business negotiations, in China it is important that both parties refrain from embarrassing one another and to meet any differences halfway to ensure a successful negotiation. If Finn can enhance the current relationship to build trust

The Daniel Gill, the chairman and CEO faces the possibility of changing the organizational structure of Europe, Asia/Pacific, and the Western Hemisphere. The current organization includes an International Division which oversees production and marketing for countries outside the United States. The goal of changing the organizational structure of these three regions is to increase sales growth internationally and decentralize responsibility away from headquarters to field operations.

The lesson learned from this is that sometimes it is easier and faster reach a new market via joint venture, even though the profit will be less, but the company can save a lot of money in studying the new market trying to understand the new culture and how they purchase and also it can minimize the risk because there is a national brand supporting the new international brand, which gives confidence and security to the customers.

Alex wanted to capture foreign markets directly but he didn’t have enough resources on its own to do that. After their promising new product was developed, they had a chance to license it to a Scottish manufacturer, McTaggart. McTaggart couldn’t build the market based on shipments from America because it was too expensive. There was a 5% tariff coming in, freight and insurance was another 10% on top of the price and also there was the matter of currency values. He wanted to enter a licensing agreement. McTaggart already had a demand for the product so getting into a license agreement with him would be in Alex’s advantage. For Alex it was a good way to enter the U.K. market swiftly via McTaggart’s sales force. There was no financial risk involved. If Alex agreed on licensing he would have advantages such as low investment costs, reduced financial risk and quick market entry. He agreed on a deal with McTaggart for the U.K market only so he got his chance to exploit its technology there. The license granted to McTaggart will help bring in the cash flow needed so that they can try to expand. However, the profit of the licensor may not be maximized

As a Wholly Owned Foreign subsidiary in the Chinese market Our Aero Engine Assembly and Maintenance firm will encounter significant challenges as a Greenfield start up within the Chinese markets and our Human Resource Strategy will be key to competitive advantage.

•Geographic Distance - China is geographically far from Mexico, what could influence such business sides: control and strategic business development. Different infrastructure approaches, for example employees in China were riding bicycles to transport the products and manage the shelf space, for example, in the America products were transported by trucks. Speaking about the size of the market - The Grupo Bimbo overestimated the size of the market, as says in the case, the large proximate market the company could serve. The size doesn 't ' guarantee the prognoses sales.

GM has a dreadful strategic alliance with Daewoo Company (GM Daewoo) in South Korea as far as the Asian Pacific market concerned like the case indicated. GM Daewoo has started to increase sales, yet, it needs way to go. GM Daewoo is the low cost production base with its facilities in South Korea and Vietnam for some GM brands such as Hummer and Saturn and Opel of European Operations. The subsidiary made some moves to expand its operations in Europe by purchasing former Uzbekistan and Romania plants of Daewoo and Polish car maker Fabryka Samochodów Osobowych (FSO) (GM Daewo Company overview, Hoovers website, 2010, December 5).

There is also the chance to join with other companies such as the cooperation opportunity with 3M. The 3M proposition definitely is a value added advantage to Yunnan Baiyao as it will be able to leverage off 3M’s global presence and expertise that it lacks. Being associated with a reputable American company may also provide easier access through the regulatory barrier.

Yes! The Chinese auto industry is attractive to BYD. Given the expected growth and demand in the auto industry, combined with Chinese government having stopped issuing production permits for new automotive companies, there are very few remaining opportunities to get in to this booming auto industry. Moreover, BYD is getting a good bargain as the assets of the state-owned Qinchuan Auto are being sold at a cheaper price. The state owned auto manufacturers without foreign partners accounted for 25% of auto sales in China. Many of the SOE manufacturers did not even have R&D departments. Because most of the automobile parts were imported, similar models of cars cost more in China than in USA. The existing foreign joint ventures were selling the vehicles at prices that gave them margins of 10% to 20%. Considering the current situation, there is room for low-priced entrants. Wang always dreamt of applying Li-ion battery technology to develop an electric vehicle. Using newer battery technology and assembling it cheaply, the vehicle could be competitively priced and represent a way for China to leap

For any company going out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market share, saturation of the local market, for getting the economies of scale of production, to use their excess capacity and use the resources where it is available at law cost.

There are two sides to the problem, the Chinese and the American, and Ray is the only one who can see both of them. The reasons for these two points of view are the socio-cultural differences that exist among countries. Culture is what defines a country and it can be composed of the language, values, religion, models of conducts, and beliefs, among others. There are many cultural differences between China and the U.S. China has a strong sense of hierarchy and respect towards figures of authority. For example, the vice president of a company might decline to participate in a very lucrative opportunity if it meant going over the president and his boss. This is a behavior that many Americans would find difficult to understand because their priority would be to make money. Another example is the role women play in business world. Even though the number of professional Chinese women has grown, men still think they are inferior, which is why when they see a woman succeeds in a position usually occupied by men; she earns great respect (Fang, 2008). This is actually something that other countries looking to enter Chinese market can use to their advantage. These and the many other cultural differences that exist between China and the U.S. explain why they see the problem in a very different way. Based on these differences, if Rocky River decides to pull out of the venture, it will be very difficult for the Chinese to trust the

However, TaiSource shows that they want the market too. If they do so in the near future, USTech will be in a crisis. To avoid the potential threat, US Tech should consider cooperating with a Chinese supplier as an alternative. Another aspect is about Chinese policy, it’s complex, changeable and kind of lean the balance to domestic enterprises. Although TaiSource currently hold the mainland resources and relationships, to have USTech’s own Chinese suppliers could better ease the burden of policy issues and polices to the business if USTech want to explore and expand Chinese market.