The China Venture
The China Venture The China Venture
Ressource 3 Ressource 2 Ressource 1 Golden Town Golden Town Step 3 Step 2 Step 1 Resources are planned to be used when needed and relay on the reliability of the calculation and plan Time Start Start FIGURE 3-15: The way to "Golden Town" 113 relays primarly on the reliability of the network and on the capability to take chances whenever they occur We are not saying that Chinese partners are not able to follow a straight strategy or plan a critical path. Considering the external environmental conditions in China the "Chinese way" may be quicker and more successful as too many unforeseen circumstances exist in this growth market with rapidly changing infrastructures, laws, financial institutions and system, politics, labour m arket and distribution market. A study by Arthur Andersen Consulting shows that for a selected group of 75 FIE's in China, companies with the best results focused most on partner relationships and human resources management. 114 Due to realistic expectations, a clear strategy, long lasting relationships and also “luck”, many companies are successful in China. But one should also distinguish between reality and myths! 113 China - Wirtschaftspartner zwischen Wunsch und Wirklichkeit, Reisach et al., 1997, p.313. 114 Source: "Der Monat", issue 12/1996, Swiss Bank Corporation, p. 40. 104
3.2.13 Case Study: Swisstec, Lyss 3.2.13.1 Company Profile Swisstec is a co-operation of various Swiss mechanical engineering companies to market their products in the People's Republic of China. The company was founded by Feintool AG Lyss as successor for its local agent organisation in Beijing, Chongquing and Shanghai and today has the following members (shown in Table 3-10). Company Activities BalTec Maschinenbau AG, Pfäffikon/ZH Dama Optikmaschinen AG, Wetzikon Fehlmann AG, Seon Feintool AG Lyss, Lyss Hämmerle AG, Brugg Mikron Agno, Agno Sempac AG, Cham Weinberger AG, Dietikon Kardex AG, Volketswil Sheet metal working machines, riveting machines Micro engineering for precision, mechanics, optics, glass and ceramics Metal milling and drilling machines Fineblanking technology and forming presses Sheet metal working machines (flat metal part roll-leveling machines) Automatic machining systems for small parts Production lines for chip cards Photonics instrumentation for the analysis of fast motion Modular storage and retrieval systems TABLE 3-10: Members of the Swisstec organisation Swisstec offices are located in Beijing, Shanghai and Chongquing with plans to open a Guangzhou office in the near future. 3.2.13.2 Motivation for Founding Swisstec Due to retirement of Feintool's representative in Beijing, who also acted as agent for about a dozen other Swiss companies, a solution for a succeeding organisation was sought. Given that the office infrastructure was too big and therefore too expensive for Feintoool to bear alone, the alternative seemed to be to appoint one of the large Swiss trading companies in China as agent. However, these trading companies would normally have a high number of agencies and Feintool feared that they might not pay enough attention to its relatively small market segment. As a result Feintool sought the co-operation of the other companies which were represented by the same agent in China. 105
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3.2.13 Case Study: Swisstec, Lyss<br />
3.2.13.1 Company Profile<br />
Swisstec is a co-operation of various Swiss mechanical engineering companies to market their<br />
products in the People's Republic of <strong>China</strong>. <strong>The</strong> company was founded by Feintool AG Lyss<br />
as successor for its local agent organisation in Beijing, Chongquing and Shanghai and today<br />
has the following members (shown in Table 3-10).<br />
Company Activities<br />
BalTec Maschinenbau AG,<br />
Pfäffikon/ZH<br />
Dama Optikmaschinen AG,<br />
Wetzikon<br />
Fehlmann AG,<br />
Seon<br />
Feintool AG Lyss,<br />
Lyss<br />
Hämmerle AG,<br />
Brugg<br />
Mikron Agno,<br />
Agno<br />
Sempac AG,<br />
Cham<br />
Weinberger AG,<br />
Dietikon<br />
Kardex AG,<br />
Volketswil<br />
Sheet metal working machines, riveting machines<br />
Micro engineering for precision, mechanics, optics, glass and<br />
ceramics<br />
Metal milling and drilling machines<br />
Fineblanking technology and forming presses<br />
Sheet metal working machines (flat metal part roll-leveling<br />
machines)<br />
Automatic machining systems for small parts<br />
Production lines for chip cards<br />
Photonics instrumentation for the analysis of fast motion<br />
Modular storage and retrieval systems<br />
TABLE 3-10: Members of the Swisstec organisation<br />
Swisstec offices are located in Beijing, Shanghai and Chongquing with plans to open a<br />
Guangzhou office in the near future.<br />
3.2.13.2 Motivation for Founding Swisstec<br />
Due to retirement of Feintool's representative in Beijing, who also acted as agent for about a<br />
dozen other Swiss companies, a solution for a succeeding organisation was sought. Given that<br />
the office infrastructure was too big and therefore too expensive for Feintoool to bear alone,<br />
the alternative seemed to be to appoint one of the large Swiss trading companies in <strong>China</strong> as<br />
agent. However, these trading companies would normally have a high number of agencies and<br />
Feintool feared that they might not pay enough attention to its relatively small market<br />
segment.<br />
As a result Feintool sought the co-operation of the other companies which were represented<br />
by the same agent in <strong>China</strong>.<br />
105
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