The China Venture
The China Venture The China Venture
Available Distribution Channels Market Knowledge Relationship (Guan Xi) Financial Power & Capital 10 9 8 7 6 5 4 3 2 1 0 Quality of Infrastructure SME Chinese Partner Banks & Government Available Management Resources Suitability of Product & Services Portfolio Production Know-how Business Parks FIGURE 3-11: Profile for the optimum combination of all potential partners Practical experience shows that the necessary available management resources pose the most difficult problem to overcome. However, it is equally important to gain access to local authorities and government institutions by guanxi. The combined profile of the joint venture partners should well extend on the diagram axis "management resources" - "guanxi" in order to have sustainable success, although lacking management resources may be partly balanced by extensive guanxi and vice versa. All other dimensions do not necessarily have to be at the optimum as practical case studies (please refer to the appendices) show. 92
Illustrative Case Studies The following case studies should illustrate different approaches of companies how to optimise their profiles together with various partners as stipulated above. All profiles shown in the figures are for illustration purposes only to emphasise certain aspects and are not to be interpreted as valuation of the companies! Suzhou MFN Embroidery Co. Ltd. The first case covers a Wholly Foreign-Owned Joint Venture in the textile (embroidery) branch: Available Distribution Channels Market Knowledge Relationship (Guan Xi) Financial Power & Capital 10 9 8 7 6 5 4 3 2 1 0 Quality of Infrastructure Forster Rohner AG Mizorogi, Nisshinbo Suzhou Available Management Resources Suitability of Product & Services Portfolio Production Know-how FIGURE 3-12: Profile of Suzhou MFN Embroidery Co. Ltd. 93
- Page 53 and 54: Loans, public offerings of shares,
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- Page 61 and 62: control compared to national enterp
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- Page 65 and 66: 3. Pre-Entry Strategic Consideratio
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- Page 81 and 82: 3.2.4.3 Legal Framework for Foreign
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- Page 99 and 100: Available Distribution Channels A m
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- Page 109 and 110: Which Aspects should SME's Focus on
- Page 111 and 112: Strategy No. 1: Have Cash A comfort
- Page 113 and 114: expenses have a detrimental effect
- Page 115 and 116: As a conclusion, network oriented m
- Page 117 and 118: 3.2.13 Case Study: Swisstec, Lyss 3
- Page 119 and 120: factor which makes the foreign firm
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- Page 123 and 124: 3.3.1.3 The Role of Technology Mana
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Available Distribution<br />
Channels<br />
Market Knowledge<br />
Relationship (Guan Xi)<br />
Financial Power & Capital<br />
10<br />
9<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
Quality of<br />
Infrastructure<br />
SME Chinese Partner<br />
Banks & Government<br />
Available Management<br />
Resources<br />
Suitability of Product &<br />
Services Portfolio<br />
Production Know-how<br />
Business Parks<br />
FIGURE 3-11: Profile for the optimum combination of all potential partners<br />
Practical experience shows that the necessary available management resources pose the most<br />
difficult problem to overcome. However, it is equally important to gain access to local<br />
authorities and government institutions by guanxi.<br />
<strong>The</strong> combined profile of the joint venture partners should well extend on the diagram axis<br />
"management resources" - "guanxi" in order to have sustainable success, although lacking<br />
management resources may be partly balanced by extensive guanxi and vice versa.<br />
All other dimensions do not necessarily have to be at the optimum as practical case studies<br />
(please refer to the appendices) show.<br />
92
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