The Fuzhou Food Factory

The team that Wittenberg - The Fuzhou Food Factory was the larger of the two. It produced a much broader range of food products and had the potential to distribute products widely within China. Located in the province of Fujian, there was relatively little foreign competition, and little domestic competition as well.

The other partner being considered was the Dongfeng Biscuit Company, located in the booming southern province of Guangdong. Dongfeng was a much smaller company. The size of the investment required by Parker’s Biscuits was, correspondingly, considerably smaller. All indications were that the management at Dongfeng would be much easier to work with and would provide Wittenberg with a much greater degree of flexibility when it came to making decisions around workforce rules and training, process technology, quality, and production control and inventory management methods.

The parker way standardisation can be maintained…quality

code of business ethics upon which business would be operated can be dictated by parker’s

they are highly interested

new kuj vihar, ngp , assam 15th

standardization - working clean

parker’s experience from asia/china

In 1988, with the help of an experienced Hong Kong entrepreneur, a Chinese partner was identified and negotiations took place. An agreement was signed for a three-way joint venture on a carefully chosen, auspicious date in 1989. The venture began manufacture of simple butter cookies in the Chinese partner’s small plant outside Guangzhou, in the economically booming region in Southern China easily accessible from Hong Kong (see map in Exhibit 1). Although the Parker’s negotiating team had made clear the code of business ethics upon which it operated, the Parker’s management team quickly discovered that the Hong Kong partner was acting without concern for it. The partner engaged in a full spectrum of business practices well outside Parker’s code of ethics, from bribery to duty avoidance schemes. Parker’s walked away from the venture after four months and a half-million dollars invested.

The management team that had been pulled together for the short-lived joint venture included Steve Dewitt, who had worked in the Hong Kong subsidiary and was then working in corporate international business development, and Nalik Wattanapanom, the plant manager in Thailand.

later they rented a small plant in shenzhen from a local enterprise and arranged for the 3rd party to operate the plant

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