...Should companies comply with China’s terms? As our society advances towards a global society, and companies begin to transition themselves into multinational and global organizations, the question of which rules and regulations should the company follow is likely to precipitate. I feel such is the case with China. I believe prior to answering the question of foreign nation compliance, one should examine the reasons why an organization has entered into that foreign market. The primary objective is typically profits, a secondary could be expansion, an initiative to become a globally known brand and gain international market share. Once the fundamental question of “why” is answered, the remaining issues, such as foreign government policies, can be addressed as well. So should a company comply or defy? Proponents of both sides of the fence are up in arms and ready to debate their stance. Proponents argue loss of market share if a company decides to leave a potentially new market, especially an international market. And proponents of defying the compliance terms are citing moral and ethical beliefs which make it wrong to comply with a communist government (http://hbswk.hbs.edu/item/5246.html). So who is the victim and who is the winner? I think that both sides are equally at loss as well as gain. If a company decides to leave due to compliance issues, chances are their competitor will step in and dominate that market. It is often difficult for a company to enter into...
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...solutions: engage in the China market, or withdraw from the China market. The article outlines the benefits of working in the China market along with the challenges the company will be facing. If LS&CO. chooses to engage with China, it will be facing several challenges that may eventually go against their company value and company policy. There are unethical labor such as child labor and forced labor. Forced labor or prison labor is prohibited under Hawley-Smoot Tariff Act of 1930, this will become a problem to think about if LS&CO. were to cooperate with Chinese contractors. Although China has a big population, the buying power is not evenly distributed in the regions; however China is growing and it is still a big market with a good geological location. China is a big market and a growing economy with high population and future potential. Although it is unstable and we are not able to predict if China will fall, they also said the same thing about Japan back in 1950. In other words, this is definitely a risk that every company is taking. If LS&CO. don’t take this risk, they will be missing a huge opportunity and furthermore they may even fall behind in the market position when China eventually grows. Brand awareness in China is important and is definitely something LS&CO. should work on as it will get them more contractor opportunities—contractors that are able to give them reasonable price and also who are willing to comply with the company standards. Currently...
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...Introduction The paper provides an overview of the Riordan Manufacturing Company and explains the purpose of the Corporate Compliance Plan. Next, the paper emphasizes four main issues which are Enterprise and Product Liability, Real and Intellectual Property, Governance and International Law related to Riordan's situation. The paper concludes with the Riordan's future legal responsibilities that can affect workforce productivity, customer relationships and customer relationships. 1. Organization Overview Owned by Riordan Industries, Riordan Manufacturing is an international plastic manufacturing company specializes in manufacturing plastic parts for the beverage manufacturing industry, automotive industry, and fan manufacturers with its headquarters lodged in California. After its foundation by Dr. Riordan in 1991, Riordan Company has tried to expand its capability in terms of production of plastics and beverages containers. The company has increased its level of productivity and opened a number of new manufacturing branches in Albany, Michigan, Pontiac, and China, Hangzhou. Riordan's product line includes plastic beverage containers produced at the plant in Albany, Georgia, custom plastic parts are produced at the plant in Pontiac, Michigan, and plastic fan parts produced at the newest facilities in Hang Zhou, China. Riordan's major clients are automotive parts and aircraft manufacturers, the Department of Defense, beverage makers and bottlers and appliance manufacturers...
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...Analysis– Levendary Café: The China Challenge Statement of the Problem Mia Foster, the new CEO of Levendary Café, found that there is a disintegrated strategy between the American HQ and the Chinese subsidiaries. Further more, the huge resistance of Chen to comply with the specific plans and reporting processes required by Foster has greatly increased the tension and frustration between them. Key Problems and Issues * The expansion to China is moving far from Levendary’s well-defined concepts of store design and menu. This might have a great impact on Levendary as a whole as the long established brand image of Levendary is not maintained in the Chinese market. * Misalignment between the objective of the company in the U.S. and Levendary Café China’s operation style * The U.S. market emphasizes on the customer experience – provides place to sit and eat * The China market has a fast food establishment – e.g. take out counters and use of cheap furniture or no furniture at all (Quick casual dining) * Chen has a high reluctance to conform with the company’s planning and reporting processes * Lack of communication between the U.S. headquarter and the China market Secondary Issues * Different financial reporting processes in China and the U.S (not U.S. GAAP) * Is Chen really the best candidate for the role he serves or should he be replaced? Root Cause Analysis Symptoms: Most Levendary Café stores in China have different designs and menus...
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...hould companies comply with China’s terms? As our society advances towards a global society, and companies begin to transition themselves into multinational and global organizations, the question of which rules and regulations should the company follow is likely to precipitate. I feel such is the case with China. I believe prior to answering the question of foreign nation compliance, one should examine the reasons why an organization has entered into that foreign market. The primary objective is typically profits, a secondary could be expansion, an initiative to become a globally known brand and gain international market share. Once the fundamental question of “why” is answered, the remaining issues, such as foreign government policies, can be addressed as well. So should a company comply or defy? Proponents of both sides of the fence are up in arms and ready to debate their stance. Proponents argue loss of market share if a company decides to leave a potentially new market, especially an international market. And proponents of defying the compliance terms are citing moral and ethical beliefs which make it wrong to comply with a communist government (http://hbswk.hbs.edu/item/5246.html). So who is the victim and who is the winner? I think that both sides are equally at loss as well as gain. If a company decides to leave due to compliance issues, chances are their competitor will step in and dominate that market. It is often difficult for a company to enter...
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...perspective, what are the arguments for and against entering China? The decision of whether to censor data in exchange for access to a multi-billion dollar market or to maintain a level of international integrity was a dilemma Google faced with their opportunity to enter the Chinese market in 2005. Two years after their inception in 1998, Google had enjoyed positive growth leading to them owning 25% of market share in the Internet search market; once search results became censored in 2004, Google experienced the complexities of working with a dictatorship when posed with the opportunity to enter a communist market, China. In 2005, Google’s Board of Directors met to discuss the pros and cons, and the costs and benefits, of entering the Chinese market, knowing that they would be required to limit the information they made available to Chinese users. If Google chose to enter into agreement with the Communist Party, they would be able to tap into an enormous market opportunity. Google would thereby be able to establish a dominant presence within one of the world’s most rapidly growing countries, getting potential access to over 1.3 billion people and 103 million Internet users. Furthermore, China has been able to break barriers in every market, quickly demanding the attention of foreign investors: “As a result of these [Mao’s successors] reforms, China’s GDP grew tenfold over three decades” (Ibid., 471). Worsfold’s Google in China case study explains: “In the U.S., nearly 70% of the...
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...manufacturer with annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 company with revenues over $1 billion. The following are some of the products produced by Riordan Industries: plastic bottles, fans, heart valves, medial stents, and custom plastic parts (Virtual Organization, 2009). This compliance plan will state the company's legal responsibilities and regulations necessary to continue earning a profit. The plan will address the laws affecting the plastic industry and guidelines to ensure management and employees understand and obey the laws. The focus of the compliance plan will be on managing the legal liabilities of Riordan officers and directors. Riordan Manufacturing was started and founded by Dr. Riordan, a professor of chemistry. The company focused on research and development of plastic substrates. In 1992 the company purchased a fan manufacturing plant in Pontiac, Michigan. In the year 2000, the fan operation was moved to China. The corporate headquarters that include research and development is located in San Jose, California. Plastic beverage containers are produced in Albany, Georgia and custom plastic parts are produced in Pontiac, Michigan (Virtual Organization, 2009). The compliance plan will include an Alternative Dispute Resolution (ADR) to resolve a dispute, product liability to address risks against defective product claims, international laws regarding the plant in China, tangible and intellectual property laws, laws...
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...Mattel Cynthia D. Marshall BUS 250 Armando Nunez April 16, 2012 Mattel Mattel started its business in 1945 and company was incorporated in 1947. Company became publicly held in 1960. In 2007, with turnover of $5.6 billion and net profit of $592 million, Mattel was global leader in design, manufacturing and marketing of toys. At that time, Mattel employed more than 30,000 employees and company was selling products in more than 150 countries. Mattel’s portfolio of toys include some of the best selling and most popular toys such as Barbie, Hot Wheels, Matchbox, Radica, American Girl etc. Mattel was always considered as a responsible company. Mattel earned high reputation in the minds of consumers. Mattel was recognized by Forbes magazine as one of the 100 most trustworthy U.S. companies. Mattel was recognized as one of the 100 Best Corporate Citizens by CRO magazine. Mattel outsourced major portion of manufacturing to low cost production countries. In 2007, near 65% of Mattel’s toys were manufactured in China. Company also had factories in Hong Kong, Indonesia, Malaysia, Philippines and Singapore. Near 50% of the revenue of Mattel came from the toys manufactured outside USA. In addition to producing toys in its own factories, Mattel contracted production to 30-50 Chinese companies. Many of these companies in turn subcontracted the production/part of production to other subcontractors. In 1997, Mattel developed a detailed code of conduct - “Global Manufacturing Principles”. These...
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...them are UK, Slovakia, China, India or Hungary. Only in UK Tesco employs 300,000 people in over 2,900 stores. Tesco sells different ranges of product; groceries, clothes, furniture, technical equipment and many more. Whoever wants to shop at Tesco doesn’t have to even leave the house to do it. They offer online shopping option so customers can buy their everyday shopping and get it delivered usually the same day. Tesco’s main aims and objectives is to maximise the sales and profits and maintain they place in the market. They want to offer the best possible, deals and prices for their customers and meet their needs in order to stay the leading supermarket in UK. Human Resources Management Human Resources Management is the management of the organisation’s workforce. Its main role is to attract, select, recruit and train employees. Its main aim is to make sure that the organisation get the right people to work which can enable every firm to make profit and become successful. Human Resource Planning Human Resources planning is a process of looking at the current workforce and planning what is going to be needed in the future. The process helps to identify future gaps in workforce and develop strategies to fill them in. Internal factors to consider when planning human resources Organisational Needs * New product/services Tesco is a company which changes constantly by increasing the number of products and services offered. It’s up to the company which new products or...
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...a) What are the criteria that a company must satisfy in order to be eligible for listing its shares on the exchange? Listing Criteria The rules governing the listing of stocks on Shanghai Stock Exchange were first come into effective in January 1998. Later on, these rules experienced several revises--- first time in May 2000, second time in June 2001, third time in February 2002, then in December 2004 and May 2006, and the latest revise happened in September 2008. General Rules The objectives of Shanghai Stock Exchange are to maintaining an orderly securities market and protecting the legitimate rights and interests of investors. In accordance with these purposes, there are some general criteria for corporations who want to list their stocks in Shanghai Stock Exchange. Firstly, the companies should follow the regulations and laws of the People’s Republic of China, such us the Company Law, the Securities Law, the Measures on the Administration of Stock Exchanges and some other applicable laws and administrative regulations. When China Securities Regulatory Commission (CSRC) or the Shanghai Stock Exchange has other provisions on the listing, such provisions shall prevail. Secondly, apart from the companies, the companies’ directors, supervisors, senior officers and relevant persons should also comply with laws, administrative regulations, and other regulations of the Shanghai Stock Exchanges. Thirdly, an application for listing stocks on the Exchange shall be subject...
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...through economic globalization, international investors are attracted to a given area with the potential for growth but this is only possible if the legal framework of the country of interest is clear on the investment policies that should be undertaken. Specifically, Shanghai has shown the significance of economic globalization owing to the number of investors who are attracted to invest in the country. As a legal counselor for DFW, a firm that is interested in venturing in Shanghai, understanding Chinese investment policies are critical in determining the business structure that the company will have, as well as, the various incentives, and the means of resolving disputes should any arise. There are two main types of business structures that can be used in Shanghai; these can be Limited Liability companies and Representative office. The Limited Liability Company is independent legal entities that bear responsibility for their actions. Another definition for the limited liability Company is provided for under Article 3 (2). LLCs are usually independent from the shareholder and the individual investor. Investment in the LLC can be by an overseas company or by an individual or the domestic company. Examples of structure under the limited liability company include the Wholly Foreign Owned...
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...Facts and Figures: * During the 30 years of communist rule (1949 – 1979), China had an autakrick economy i.e. it prohibited foreign investment & restricted foreign trade. * China’s policy also reflected its historical belief that contact with foreigners tended to corrupt its politics and harm its culture. Still, in order to ahead of the other countries economically, China enacted the Law on Joint Ventures using Chinese and Foreign Investment in 1979. * Since then, China has experienced a dramatic rise in FDI. The largest recipient of FDI among all developing countries, and it ranked second to the United States for FDI inflows since 1993. * By mid – 2002, total FDI in China had exceeded $700 billion and was invested in nearly 4, 00,000 ventures. * Japan, Taiwan, US are China’s most important sources of FDI. * China is world’s third largest country in area and largest in population, which makes it attractive to market-seeing FDIs. * It modified their practical aspects on trade by steadily adopting the principles of free trade. * China restricted imports & let foreign investors propose their preferred mode of entry by giving stringent criteria i.e. each foreign investment application should determine whether the investment was in the best interests of China – whether it helped in capital formation, promoted exports, created jobs, or transferred technology. * All FDIs had to go through an extensive process of the Chinese Ministry of Foreign...
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...Google in China Cohort Manara Google In China Corporate Social Responsibility Professor Kenny Tang HULT International Business School Module B Submitted By: Manara Team 10 Hafswa Salim Adriéne T. Smith Ornella Anoh Aravind Sathyanandham Yogesh Ranwa Samer Abou Fakher March 9th, 2014 1 Team 10...
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...headquarters in California and they assembled in front google office there. About 50,000 letter were sent to the CEO of the company. I those some of the, trying to rebuild the fallen stock of the company and regain the reputation. On the other hand, while maintain business with china they had cope with the government’s censorship relegation. 2. Prior to the launch of Google.cn, what factors should Google have considered in reaching their decision to comply with Chinese government censorship laws? Prior to the launch of Google.cn, google should have analyzed the ethical and legal effects of this. However, they only considered the business opportunities in china without analyzing the analyzing the ethical and legal effects. They should have considered their social responsibilities. They are in business to make profit but it should not be in the expense of others. They should have acted ethically and analyzed their mission more before going china. 3. Assess Dr. Schmidt’s statement “We actually did an evil scale and decided that not to serve at all was worse evil.” Was Google being evil? From my perspective, I believe google was being evil and Dr. Schmidt statement is true. The company’s mission is to make information universally accessible. However, by doing this Google actually betrayed their own mission and betrayed the goals of the company. They should not allow the censorship of its search engines. 4. Using Thomas Donaldson’s Ethical Algorithm, assess the censorship...
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...Executive summary. The greenfield FDI is a form of direct investment where a parent company starts a new business in a foreign country by setting up new operational facilities. In addition to building new facilities, most parent companies also create new long-term jobs in the foreign country by hiring new employees. In order to decide which country is better for ‘greenfield’ foreign direct investment via sole ownership, the advantages and disadvantages of the countries should be considered. For example, China is a developing country, and during the past 30 years, China’s rapid economic development shows that China has a strong power in developing economic. In recent decades, China stays on one of the leading positions in direct investment and therefore a lot of investments to this country are considered to be profitable for any company or investor. The reasons are simple: the growth of the economy and a large number of different projects. Foreign direct investment in China, due to stable growth potential of the economy and a huge production resources, aimed at both the external and the internal market.The innovative ability is a great attraction for investment managers around the world. In contrast, a lot of foreign investors had chosen China for investment and this resulted in a very big competition. Nevertheless, USA is a successfully developed country. And its economy is the top one in the world. As the most important country in the first world countries, the USA...
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