China's Global Business Plan

China's Global Business Plan

In week five Team C has to prepare a final global business plan paper for the venture in China. The team first had to summarize the findings from the previous team assignments. After summarizing the team had to integrate the week five assignment with the work that had been turned in previously. The team paper for week five included the rationale the team used for choosing the target country. The team also had to determine the marketing mix that was specific to the selected global product and give an explanation why this mix was chosen. A marketing plan was prepared that addressed product modification, pricing, promotional programs, distribution channels, and e-business in the chosen country. The paper will include market indicators and trends for the product.

A financial overview for the global venture will be given, which includes a chart for the general budget and an explanation of how the company will deal with the foreign exchange risk. The company will have to identify potential domestic and international sources for funding the venture, and the team will identify two possible financial institutions within the chosen region. In the paper a description of the degree at which the organization will operate as a centralized versus decentralized organization, and a chain of command chart will illustrate how information is passed from the field to senior management. Appropriate exit strategies will be discussed, and a final recommendation will be given concerning the feasibility of this global venture. The team will recommend whether or not to proceed with the venture.

Summaries from previous week's papers

Region Analysis

The Chairperson of the World Trade Organization in 2008 conducted a Trade Policy Review to examine China, which it revealed countless constructive and destructive transformations since the prior review. The World Trade Organization (2008) desires China to further build up their "commitment to the multilateral trading system" (para. 2). Numerous developments already appear like restructuring trade liberalization. China continues to necessitate supplementary "enforcement of intellectual property rights, [which] remained insufficient" (para. 5). Nonetheless, China possesses the assets accessible to produce whole products inside the nation's boundaries to reduce the prerequisite imports from external nations.

China is involved with many notable alliances like "Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, [and] Whaling" (CIA, 2011, Environment - International Agreements).

Economic Integration and Conditions

The World Trade Organization (2008) "remarked on the fact that all China's tariff lines are bound and that the relatively low applied MFN rates are close to bound MFN rates, thereby imparting a high degree of predictability to its tariff regime" (para. 4). Additional chief interests were "about remaining regulatory and other barriers to trade and investment, especially customs procedures, import restrictions, anti-dumping measures, standards, technical regulations and SPS, and restrictions on foreign investment" (para. 4). The Central Intelligence Agency (2011) states, "Since the late 1970's China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role--in 2010 China became the world's largest exporter" (Economy - Overview, para. 1). China's gross domestic product or GDP value in 2010 was $10.09 trillion, which results in the third largest GDP value in the world (CIA, 2011, GDP). One may also note with the GDP value China has the largest labor capital in the world.

Physical Environment

According to the Central Intelligence Agency (2011), China is "slightly smaller than the US" (Area - Comparative). China totals approximately 9,596,961 square kilometers, which is the fourth largest country in the world. China's terrain is "mostly mountains, high plateaus, deserts in west, plains, deltas, and hills in east " (Terrain).

Through studying China's history for natural disasters and possible natural disasters in the various regions of the country, an organization can further consider the amount of trade the organization becomes involved with. China has been known for many natural disasters like "frequent typhoons; damaging floods; tsunamis; earthquakes; droughts; land subsidence. China contains some historically active volcanoes--although most have been relatively inactive in recent centuries" (CIA, 2011, Natural Hazards).

A severe challenge the industrial China confronts daily is

Air pollution from reliance on coal produces acid rain; water shortages, particularly in the north; water pollution from untreated wastes; deforestation; estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development; desertification; trade in endangered species (CIA, 2011, Environment - Current Issues).

Consequently, the younger generations of China are obligated to deal with the leftover pollution troubles to either reverse or simply cope with. Breathing masks are an excellent product for the people of China in either situation.

Political Stability

The political and economic systems depend on one another and hold a significant weight on one another. A political system's two proportions "are interrelated; systems that emphasize collectivism tend toward totalitarianism" (Hill, 2009, p. 42). China's government is communist, and China's "most recent [law] promulgation [was] 4 December 1982, [which have been] amended several times" (CIA, 2011, Constitution). China's trade laws continue to improve.

Finance options available

China's regional finance option is quite like the United States because we both depend on regional banks for our lending purposes. Lending from a local bank can be lengthy, and can slow down the economic growth of any country. China at the current moment is trying to institute new measures to quicken up the money raising process. The main idea will be to create more institutional investors, improve market making, and the money brokering systems. The effect of this measure will create corporate direct financing and lower financial risks to