CASE STUDY NO. 3

I. Case Background
DMG Entertainment began as an advertising agency that was founded by Dan Mintz, Peter Xiao, and Wu Bing. DMG is a Chinese-based film production and distribution company. DMG began as an advertising agency in the 1990s, and it began distributing non-Chinese films in the Chinese film market in the late 2000s. DMG had emerged as one of China’s fastest growing advertising agency

II. Statement of the Problem a. Long term
-DMG has many contacts even in the politics. They use their contacts in order to come across the law and regulations of China, they use bribery in order to pursue what they want to get or achieve. The problem is in USA, they get late schedules for the movies that should take place early, if they’re going to use lobbying, this will take time and bribing is the only way but Bribery in America is illegal that’s why they’re going to have a hard time to go with the USA government. Ethical issues are considered.

b. Short term
-DMG is partnering up with Disney and Disney has different culture when it comes to Chinese people. Disney is very westernized, partnering with DMG might be a problem. Chinese people are very traditionalistic. If people don’t bite the Disney movies, tendency is the DMG might have loss instead of profits and it is a big opportunity loss for DMG.

III. Assumption and areas of consideration

When it comes to USA, Guanxinwang is hard to apply. They have high standards when it comes to Ethical Issues. But if officials of the US government have different understanding about guanxinwang, they can persuade and apply it to the USA. What could be wrong by law can actually be look in a different light when persuading officials so it is a huge advantage.

IV. Analysis and alternative courses of action * DMG can preserve and follow the Rules and Regulations of the US