This website uses cookies to ensure you have the best experience. Learn more

Operating Business In China Essay

8213 words - 33 pages

1. Introduction.The Viewpoint by Siva Yam (Establishing Entities in China: 2002:1-2)Siva Yam who is President of the U.S.-China Chamber of Commerce. He is also Managing Director of Siva Yam & Associates, L.L.C., a private investment banking and consulting firm that specializes in micro and middle market companies that invest in China.Siva framed his presentation with the statement "everything in China is illegal until proven innocent," to underscore his sentiment that "the people in China who make money are the ones who give the approvals [to do business in the country]."Siva supported his opening remarks with the historical fact that China suffered 200 years of political turmoil ...view middle of the document...

"You cannot evaluate machines, property, or intellectual property. You can only evaluate cash." He also warned that "selling old technology to China doesn't work, since China wants technology transfer." Siva said joint ventures also have substantial government involvement. Also, the Chinese side of a joint venture can veto Western partners who wish to sell off assets or ownership.Siva offered that Wholly Owned Enterprises (WOEs) work better for foreign companies investing in China than do joint ventures. Many industries are still prohibited from forming WOEs, including news media, publishing, domestic commerce, and telecommunications among others, according to a white paper prepared by Siva Yam & Associates. The white paper, entitled "Establishing Entities in China," was included in the Conference proceedings. WOEs with advanced technology and/or that export their products may see tax privileges they wouldn't under other business structures. Siva pointed out, however, that "Western investors still may need to convert their China company from a WOE "to an offshore-based entity to get their money out [of China]."Siva concluded his talk by giving advice on how to do business in China. "You need to collect information, which is the most important thing. You need to understand the players." He continued that China has an extensive approval process, so "you need to know high to low: all the players," he emphasized. "Eat dinner; sing karaoke with these people to understand everything." Western operators must personally attend to details, determine what is real and unreal in doing business in China, and be very patient.2. The Case Study: Nokia2.1 Nokia in Brief"Our mission of connecting people is more than just an advertising buzz phrase. It describes what we do. It says what benefits we bring to our operator and enterprise customers, to consumers and to society. It says who we are and what we represent. It is our compass; we use it to drive our business forward and to deliver value to our customers."--- Jorma Ollila, Nokia Chairman and CEO (European, online, 09/2005, 17:50pm)Nokia is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to enhancing people's lives and productivity by providing easy-to-use and innovative products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses.In 2004, Nokia's net sales totaled EUR 29.3 billion. The company has 15 manufacturing facilities in 9 countries and research and development in 12 countries. At the end of 2004, Nokia employed approximately 55,500 people. Nokia is a broadly held company with listings on the Helsinki, Stockholm, Frankfurt and New York stock exchanges. With a leading brand, strong product offering, advanced technology, and unique corporate culture, Nokia is well placed to usher in a new era of mobile communications (European, online, 09/2005, 17:50pm)2.2...

Other Essays On Operating Business In China

Foreign Direct Investment: Starbucks Case Essay

2705 words - 11 pages organization, compared to the United States, to provide resources and respond to the business needs in each region.Though international total net revenues increased by $142.4 million, or 30.9%, to International specialty revenues increased $26.1 million, or 28.1%, to $119.1million in fiscal 2003, excluding Canadian operations, operating losses increased by 11.1% to $18.5 million in fiscal 2003, compared to an operating loss of $16.7 million in fiscal

China The Rise Of A New Power Paper ECO 360

1693 words - 7 pages , according to a recent report by the American Chamber of Commerce in Shanghai, which represents U.S. business interests.The article asserts the proposition that if the goal of the Chinese government is to "create the Chinese century," the Communist Party will necessarily have to go away. The National Intelligence Council suggests that China may develop an "Asian way of democracy," that would involve elections at the local level and a looser central

Nike - Social And Ethical Issues

641 words - 3 pages Nike has become one of those global companies targeted by a broad range of campaigning pressure groups and journalists as a symbolic representation of the business in society. In Nike's case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has developed a considered response but the criticism of Nike still continues.Nike produces footwear, clothing

Riordan Mfg. Strategic Plan Development

1023 words - 5 pages Riordan Manufacturing, Inc is a leader in the field of injection molding, and plastics. Riordan operates state-of-the art design facilities able to create innovative plastic designs that have earned the company international acclaim. Currently Riordan is a Fortune 1000 enterprise, operating in three United States location as well as Hangzhou, China. (Apollo Group, Inc., 2004) The following discussion will review Riordan Manufacturing's Mission

Article Review: Fuel Oil Demand In China

860 words - 4 pages greater than ever. However, in order to increase profits and survival and growth in the future, it will be important for Japanese energy companies to consider the possibility to develop energy business in China by making effective utilization of the infrastructures and supply facilities already existing in Japan's energy enterprises, and of the fields in which Japanese companies hold relatively high technological levels and comparative

Financial System: Riordan Manufacturing

3181 words - 13 pages China as well. These operating entities have their own Finance and Accounting Systems that provides input that is consolidated at its corporate headquarters in San Jose. There are 12 basic components of the Finance and accounting systems they are: General ledger, Accounts payable, Account receivable, Order entry, Procurement, Sales and Purchasing history, Invoicing and Shipping, Payroll, EDI, Bar code reading EDSS (Executive Decision Support Systems

Service Request SR-Rm-012 Business Systems

1859 words - 8 pages Operations consists of three business systems; Raw Materials, Manufacturing with Inventory, and Final Product Shipping. In all three areas, labor intensive manual processes and paper forms were found repeatedly. Following is a summary of existing sub-systems within the three areas of operations, issues presented by current processes, and a proposed system that will improve operating processes.Existing sub-systemsAll three manufacturing locations in Albany

Report On Conditions Under Which Organizations Should Consider Changing Their Existing Structures And The Benefits Which May Be Excepted Structure

2522 words - 11 pages "Aerial". Pacific Optics Ltd employs a fashionable business model in which the company designs products in Australia, manufactures products by Pacific Optics Ltd (China) in lower labour-cost territories such as China, and then sells their products in local market such as Australia and New Zealand.The former of Pacific Optics Ltd. (NZ) is called Hopebrothers Ltd that is a local, small-sized and 15-year historical trade company, mainly dealing with

Riordan Manufacturing Project

1170 words - 5 pages global plastic manufacturer and is a Fortune 1000 enterprise with revenues in excess of $1 billion. It is currently employing 550 people with projected annual earning of $46 million. Riordan is currently located in three areas: Michigan, Georgia, and San Jose (main headquarter), and currently expanded in China. (Riordan Manufacturing Website, 2007)The most notable problems are that each location has its own finance and accounting systems which

Strategic Management Report For TC Company

7137 words - 29 pages the near future because of the rapidly changing market.2. An Overview of TCTC founded in 1998 is now one of the largest online gaming companies in China, and went into public by driving into Hong Kong Stock Exchange. Through 10-year development, TC is able to grow their business steadily. Currently, TC is operated by more than 2,000 employees and reported total revenue of RMB2.025 billion in the third quarter of 2008 with profit rate of 40

Riordan Manufacturing

2595 words - 11 pages Business Solutions to Inventory FunctionsDuring a brief span of 14 years Riordan Manufacturing has grown from a small plastics research and development firm to a multinational plastics manufacturing power. Riordan has expanded their operation to multiple manufacturing and distribution points across North America and China as a result of this growth. Riordan now services over 32 customers of varying in size, including automotive parts

Similar Papers

Issues In Doing Business In China

2264 words - 10 pages guanxi, Australian, North American and European firms operating in China often face a tough task in adapting to the norms of Chinese business culture at the same time continuing to honor company policy (Orfield, 2008).It's not enough to have a good business plan. You need to understand and respect the culture. Overcoming the cultural hurdles, however, can be a major challenge. For example, Western companies want to strike a deal very quickly, while

China, Indonesia And South Africa. The Different Cultural, Political And Social Dimensions Of The Countries And How They Affect International Business

3836 words - 16 pages An Australian MNC has subsidiaries in China, Indonesia and South Africa. Examine and discuss key aspects of the legal, political, economic and cultural environments in each of these locations. Explain the international business implications.IntroductionThe political system of a country shapes its economic and legal systems. For this reason and for an Australian MNC operating in China, Indonesia and South Africa we need a clear understanding of

Report Of Mannings In China

5039 words - 21 pages Li Xiang , 2011). Thus, with the technological support in China, the invention of Mannings series will grow more smoothly and become attainable.Competitor AnalysisThe two major competitors of Mannings China are Watsons and Cosmed, which are also the beauty and healthcare retailers operating in China. Comparisons are analyzed in terms of six aspects, including 4Ps, strengths and weaknesses.For Products, Mannings China is selling over 90% of the

Sun Life Case Essay

7990 words - 32 pages clear leader for purchasing potential.The government was seen to periodically loosen and re-tighten its controls, making for uneven operating conditions. The government had made progress but was not always successful at reducing corruption in business nor keeping its state-owned enterprises in check. Many foreign business people were critical of China for its level of bureaucracy in obtaining the appropriate licenses and being heavily restricted