...CASE INSIGHT ANALYSIS I The Business Environment of China: Challenges of an Emerging Economic Superpower The most important issue in this case This case provides a brief history of China and explores China’s current status in the global business environment. Throughout the reform of political structure and the economic system, the development of China was impressive. However, the potential problems due to the reform also surfaced and became the inevitable challenges of the continuous development of China. The case focuses upon an analysis of the significant challenges faced by China in society and culture, markets, technology and institutions. First, challenges in society and culture. Although China was still a comparatively young country (with a median age of 30), China’s huge population determines some of the inevitable problems during the country development. China was one of the world’s most rapidly aging nations by consequence of the country’s “one child” policy. More elderly dependents than children also cause problems in health care and retirement. The poverty and income were not equal in society. People in China still face the problems of discrimination and corruption. Second, challenges in markets. In product and service markets, local companies were often not pushed to produce high-quality products that would be competitive in the global arena. In factor markets, the size of China’s workforce and the corresponding availability of low-cost workers meanwhile caused...
Words: 502 - Pages: 3
...PESTEL analysis for China1) Political Factorsi.Constitutional SystemChina or People¶s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country.The country¶s sole political party in power is known as the Communist Party of China.The government have the sole power to control all activities done by their citizen as whathave been describe in how communism system worked in governing a country. Inother words, the purposes of working in China are to contribute to the nation and alsoto the government as the government control on all activities in the country.ii.Stability of Government. The stability of the China government is quite moderate and stable because theadministration of the government are not publicize to the public either through thepress or on the internet. So, the degree of the citizen involvement in the politics is lowbecause of the heavy restrictions impose by the government. However, the policiesimpose and the law regulations are quite effective in terms of economy where China isone of the leading countries in the world. In the recent years (2001), China has joinedthe World Trade Organization and results rapid growth in industrial and manufacturingsectors because of the cheap labor in China. But still problems such as managingenvironmental degradation, demographic pressure and the extreme immigration fromrural to urban area must be faced by the government.iii.Business FreedomThe...
Words: 4476 - Pages: 18
...PESTEL analysis for China Outlined below is the PESTEL analysis for China as a whole. 1) Political Factors i. Constitutional System China or People’s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country. The country’s sole political party in power is known as the Communist Party of China. The government have the sole power to control all activities done by their citizen as what have been describe in how communism system worked in governing a country. In other words, the purposes of working in China are to contribute to the nation and also to the government as the government control on all activities in the country. ii. Stability of Government The stability of the China government is quite moderate and stable because the administration of the government are not publicize to the public either through the press or on the internet. So, the degree of the citizen involvement in the politics is low because of the heavy restrictions impose by the government. However, the policies impose and the law regulations are quite effective in terms of economy where China is one of the leading countries in the world. In the recent years (2001), China has joined the World Trade Organization and results rapid growth in industrial and manufacturing sectors because of the cheap labor in China. But still problems such as managing environmental degradation, demographic pressure and the extreme immigration...
Words: 1960 - Pages: 8
...Using the following country – China critically evaluate the key economic, political and technological factors conditions that have enabled it to become a “rapidly developing economy” or “emerging economy.” Also what recommendations would you make for the economy of China to sustain its economic growth? Wasay Butt China as country and an economy has grown significantly in the past few decades beyond many people’s measures and expectations. As pointed out by Findlay and O’Rourke “In the longer run, the gradual rise of China to their natural roles as major economic and political superpowers was not only the best news for global human welfare in a generation, but promised to raise a variety of geopolitical challenges which as yet remain unpredictable.” (Findlay and O’Rourke, p.18 2007) This assignment will help argue the case for the key economic indicators and the role of the government that has helped China in its momentous growth strategies and what made them so successful. In the second part I have made recommendations to China to what I think will help them sustain their economic growth based on the analysis I have provided in the first part of the essay. China’s history dates back to 1912 when it was official the republic of china was formed and Sun Yat-sen was the first proclaimed provisional president. In 1949 major combat resulted in China being forced into newer leadership (Communist Party)....
Words: 2181 - Pages: 9
...Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of $100...
Words: 1493 - Pages: 6
...PESTEL -Political Recently China has made extraordinary efforts in modernizing legal and economical system aimed to stabilize the growth of the country; however China remains a strictly controlled country, where civil liberties, such as freedom of communication, religion practice and demonstration are severely limited. Major internal problems in China include growing corruption, increasing rural poverty and environmental degradation. China enjoys a strong relationship with the US and other western countries and is likely to increase its influence in the region due to its expanding economy. China has difficult relations with a number of neighbouring countries, such as Japan, Vietnam, North Korea and Tibet; in particular the strained relationship with Taiwan could ultimately result is a war if the Taiwanese government formally declares independence. -Economical China economy is characterized by its extraordinary size and growth. The GDP has grown steadily since 2003 peaking at 11% year-on-year growth in 2007 (China Business Forecast Report 2008, [1]) and inducing concerns about the country over-capacity in the long term. The US government is trying to exercise its influence to accelerate the appreciation of the Yuan, in an effort to limit or at least control its export deficit. Although the People’s Bank of China has raised the interest rates for five consecutive times in 2007, inflation is still very high with peaks of 6.2% in 2007. Economic growth is...
Words: 797 - Pages: 4
...business they want their share of its profitability (“Privatization with Chinese characteristics; Government and business in China,” 2011) (Yang, 2012) * More of an authoritarian Government – nationwide law making * Implementation by local areas * (Lo & Tian, 2004) * Political control by a relatively small group * Control on wage rates, money supply and inflation * Control of key sectors of the economy * (Cheng, 2014) * Direct Political interaction with business * Policies to encourage local private companies * Companies owned by the government: hotels and trading corporations * Effectively local politicians become “partners” * (Yang, 2012) Economic: * low labor costs * relatively equitable distribution of income among the population * a long term goal of economic development * (Cheng, 2014) * Centrally planned to a market based economy * Increasing economic and social growth * Second largest economy – 1.3 billion people * GDP growth on average 10% * Goal in 5 year plan is 7% * Still considered a Developing country with 98.99 million still under the national poverty line (“China Overview,” 2015) Social: * Confucian Ethics (a basis to start) * The Basis it what sets apart china and other developing countries and the expansions that they have seen * Creates dedicated,...
Words: 556 - Pages: 3
...industry in the People’s Republic of China in terms of political, legal, economic, and cultural and ethical traditions. Political 1. Encourage the Automobile Industry Development Policies Having struck by the world-wide financial crisis, the global automobile market currently is facing severe situations. In order to revive the automobile market, the State Department decides to reduce the vehicle purchase tax. This policy will play a major role in raising automobile consumption market while effectively encourage automobile purchase, expanding domestic demands as well as facilitating the steady and rapid development of domestic automobile industry. 2. China’s Road Construction Policy In order to maintain the automobile market to develop, the government enhances plans to provide priority to the construction of express highways and accelerating the construction of the National Express Highway. The ministry is also promoting the integration of unconnected roads. Legal 1. Legal provision relating to environmental population by automobiles and safety measures. 2. Intentions on harmonizing the regulatory standards with the rest of the world. Economic 1. Rapid Development of Economy The economy of the People’s Republic of China(PRC) is the second largest in the world, after the United States. China is the world’s fastest-growing major economy, with consistent growth rates of around 10 percent over the past 30 years. China is also the largest exporter and second...
Words: 704 - Pages: 3
...SWOT analysis for Air China The airline industry has undergone significant restructuring in recent years.Airlines, formerly rivals in a highly regulated industry, have become opportunisticseekers of co-operation. In today's world, mega-carriers and small airlines areworking together rather than competing with one another. Forms of co-operation include sub-contracting, code sharing, franchising and theformation of global marketing networks. Such alliances allow firms to focus on their respective core competencies, while drawing the benefits of scale economies. In essence,co-operation among rivals has led to increased competitiveness. This has accelerated thetrend of joint marketing, and the airline industry has become characterized by the desireto belong to a global network. The tendency has been to strive for a global presence. The case of Air China Air China was founded on the 1st of July 1955. Its headquarters is based in Beijing. Itengages in international and domestic passenger and cargo flight services. To unify itsfacility image and simplify its repairs and maintenances, its fleet of 118 aircraftexclusively consists of Boeing models. It has established hub-spoke style passenger andcargo transport network. The hub of this network is Beijing International Airport.The company is operating 339 routes, which consists of 53 international and 286domestic, operating more than 1,000 scheduled flights on weekly basis, serving 29 citiesin 19 countries. About 66 per cent of...
Words: 1739 - Pages: 7
...Introduction………………………………………………………………………………………9 3. Current revenue size and profit……………………………………………………………………………10 4. Target Market……………………………………………………………………………………………………….10 II. RESEARCH METHODOLOGY AND LIMITATION.……………………………………………………………………11 2.1 Research Design……………………………………………………………………………………………………..11 2.2 Scope and Limitation………………………………………………………………………………………………11 III. VISION / MISSION……………………………………………………………………………………………………………..12 IV. EXTERNAL ANALYSIS………………………………………………………………………………………………………….14 1. Economic Performance and Forecasts….…………………................................................14 2. Political and Government Policies Aspects.………………………..………………………………….16 3. Socio-cultural Forces……………………………………………………………………………………………..17 4. Strong Retail Growth……………………………………………………………………………………………..19 5. Sportswear Market in China……………………………………………………………………………………20 6. Major Competitors…………………………………………………………………………………………………35 7. Porter’s Five Forces of Competition Model Analysis………………………………………………..39 8. Competitive Profile Matrix………………………………………………………………………………………42 9. External Factor Evaluation Matrix……………………………………………………………………………45 10. Strategic Issues Based on External Factors………………………………………………………………46. V. INTERNAL...
Words: 20620 - Pages: 83
...China Airlines Ltd. SWOT Analysis SWOT Analysis examines the company’s, key business structure and operations, history and products and provides summary an analysis of its key revenue lines and strategy. China Airlines (CAL) is principally engaged in the provision of airline services. The company offers two major services, passenger transport and cargo transport. The company operates flights to 89 cities in 29 countries. It is headquartered in Taipei, Taiwan and employs more than 10.000 people. This report provides all the important information on China Airlines Ltd. and contains a study of the major internal and external factors affecting China Airlines Ltd. in the form of a SWOT analysis. Strengths 1. Fleet age: The average age of their fleet was only 5.6 years, making it one of the youngest and most updated fleet in the world. Their products such as their aircrafts, services and flight networks are more superior to those of Chinese counterparts. 2. Joint Venture: CAL entered a joint venture with Koos Development Corporation to form Mandarin airline in 1991, so that the airline could carry out services to Canada and Australia where CAL itself was directly banned from operating. 3. Branding: By rebranding the Airline with the Taiwanese flag and slogan “blossom everyday” CAL gained new entry to European countries like Amsterdam, Rome, Frankfurt and Vienne. 4. Aviation Market: In 2007 CAL captures one 4th of the aviation market in Taiwan making it the country’s biggest...
Words: 956 - Pages: 4
...In-Depth Analysis of PC Industry in China Xiaojun Cui Department of Business Administration, Guangdong Radio and TV University Guangzhou 510091, China E-mail: xjcui@gdrtvu.edu.cn Abstract Personal Computer (PC) industry in China has experienced a rapid growth in China in recent years, and has played a more and more important role in the national economy. This motivates us to analyze the business environment and strategic situation of the PC industry in depth. A PEST analysis is carried on to analyze the business environment of the PC industry, and Porter's five forces analysis is used to analyze the competitive nature of PC industry in China. Keywords: China’s PC industry, PEST Analysis, Porter’s Five Forces Analysis 1. Introduction The aim of this paper is to analyze the business environment and strategic situation of personal computer (PC) industry in China. The motivation of an in-depth analysis of PC industry in China stems from the fact that PC industry has played a more and more important role in national economy of China, and has an important effect on the society. Since the emergence, PC has become a necessary tool in daily life in the society. Moreover, with the advances of technology, PC carries more and more functions and attracts more and more users. Now the PC market is mature and close to saturation in the developed countries, while the development of PC industry is still experiencing a rapid growth in the developing countries such as China. Formed...
Words: 6614 - Pages: 27
...Comparative Analysis of the Impact of Macro-economic Variables on the GDP of China and India by Manish Chandi Shrestha Submitted to the Program of Analytics in the Postgraduate Division of the Business School As part of the requirement for Master of Business Administration at Bournemouth University March, 2015 Contents List of acronyms i List of figures and tables ii Abstract 1 Introduction 1 Methodology 2 Data source 3 Findings 3 Interpretation 4 Conclusion 9 References 10 Appendices 11 List of Acronyms GDP Gross Domestic Product IMF International Monetary Fund IQR Inter Quartile Range ANOVA Analysis of Variance BLUE Best Linear Unbiased Estimator VIF Variance Inflation Factor List of Figures and Tables 1. Correlation Analysis of China 4 2. Correlation Analysis of India 4 3. Beta coefficients for China and India 5 4. Revised Beta Coefficients for China 5 5. Comparison between Predicted and Actual GDP for China 6 6. Comparison between Predicted and Actual GDP for India 7 7. Test of Normality of Error for China and India 7 8. Residual Statistics for India 8 9. Residual Statistics for China 8 10. Collinearity Statistics for India...
Words: 3366 - Pages: 14
...中国证券行业分析报告 （2009 年 2 季度） 出版日期：2009 年 08 月 WWW.CEI.GOV.CN 编写说明 上半年，在经济复苏的乐观预期及充裕的流动性推动下，A 股市场走出了一波 大幅上涨的行情。 上证综合指数从 3 月底的 2373.21 点上涨至 6 月底的 2959.36 点， 深证成份指数从 8981.95 点上涨至 11566.61 点，上证综合和深证成份指数累计涨 幅分别达到 24.69%和 28.77%。 股票市场持续上涨带来的赚钱效应刺激新增开户数 以及基金募集额逐月攀升。 2009 年二季度，在股指加速上扬的推动下，大比例增仓成为基金的共识，从 整体数据来看，积极投资偏股型基金二季度仓位为 84.07%，与一季度相比大幅提 升了 8.4%。其中股票型基金的整体仓位已经达到 86.78%，与上季度相比提高了 7.61%，且已经超过 07 年三季度市场最高点时股票型基金 83.87%的仓位；混合型 基金整体仓位也达到接近 80%的较高水平， 与上季度相比提高了 9.57%； 封闭式基 金受仓位限制与开放式基金相比略低，为 75.92%。 中国经济信息网 www.cei.gov.cn 今年二季度债券市场共发行了 285 期（只）新债，发行金额合计为 23422.93 亿元，较一季度的 166 期（只）和 10730.8 亿元分别大增 119 期和 12692 亿元。分 类别来看，国债发行量暴增成为二季度债市扩容的主要源头之一。二季度财政部 共发行国债 25 期，总额 5469 亿元；代发地方债 36 期，金额 1629 亿元；二者合 计发行总额为 7098 亿元，比一季度的 1079 亿元暴增 6019 亿元，占新增额近二分 之一。央票发行量依然是排名第一，二季度发行 9250 亿元，较一季度的 4800 亿 2631 元增加近一倍。 其他券种中， 中期票据、 金融债、 企业债分别发行 2696 亿元、 亿元和 1175 亿元，较一季度分别增加 1025 亿元、1038 亿元和 513 亿元。 版权：中经网数据有限公司 TEL： （010）6855 7150 I FAX： （010）6855 8555 中国行业分析报告――证券行业 目 Ⅰ 录 二季度股票市场运行状况...........................................1 一、市场走势 ...................................................... 1 二、板块表现 ...................................................... 4 三、上市公司证券投资状况 .......................................... 5 四、IPO状况 ....................................................... 6 （一）海外上市 .................................................... 6 （二）境内A股 ..................................................... 7 （三）VC/PE支持 ................................................... 7 五、上市公司 ......
Words: 8363 - Pages: 34
...In the first century C.E, Buddhism came to China from India via trade. Political instability and disunity between 220 C.E and 570 C.E. are effects of the arrival of Buddhism in China because some people accepted the religion and others resisted it. Zong Mi believes that the teachings of Confucius, Laozi, and the Buddha, perform and reward good deeds and punish wicked deeds, synthesize the foundation for an orderly society (Doc 5). An anonymous Chinese scholar addresses speculation about the validity and the practices of the Buddhist religion, such as depriving themselves of certain luxuries of the world, i.e. marriage, children, and worldly wealth. This scholar claims that in order for a teaching to be acceptable it doesn’t need to be incorporated...
Words: 911 - Pages: 4
