Essay on The Chinese State Environmental Protection Agency

5904 Words Mar 18th, 2013 24 Pages
Case Study Report

Introduction
This case study report will explore the company Phase Separation Solutions (PS2) and identify the key problems and alternatives. An analysis and application of models will then be conducted. Specifically, the five models chosen consist of a PESTEL analysis, Porters Five Forces, a SWOT analysis, the VRIN model and the organisational configuration model. An evaluation of alternatives involving advantages and disadvantages for the alternatives are then investigated. Finally, a conclusion and recommendations are presented for PS2.

Identification of Key Problems and Alternatives
Within the case study there are a set of key problems and alternatives presented. The first problem deals with whether PS2
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Lastly, the modes of international involvement have previously been on a non-equity basis, in the form of equipment exporting, licensing and service contracts. The eighth problem is that PS2 has no experience in international expansion of an equity-based manner which could present unforeseen issues PS2 has not previously faced. Therefore determination of company capabilities to set-up operation systems to effectively implement an equity-based entry will require copious assessments.

Analysis and Application of Models

1) PESTEL Model (macro analysis)
PS2 is no stranger to international markets and is presented with the opportunity to enter the unfamiliar yet seemingly attractive Chinese market. An analysis of the Chinese market is necessary to determine the expansion viability. PESTLE is a model which can provide comprehensive information about the macro-environment of the Chinese market and can help answer the problems of whether or not PS2 should enter the Chinese market and which option(s) to choose.

Political Factors: The Chinese government has realised and reached a consensus on the importance of prioritising environmental protection beyond a “basic policy” of country agenda from 2009. The Chinese State Environmental Protection Agency spent $162.5 billion on environmental protection in 2009 and the Chinese government strongly committed
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