...to exploit its full potential as its financial markets have still not been fully opened yet. In our report, we will make an analysis of what will happen if China opens their capital markets. First, we will introduce the Chinese capital markets, second discuss the current state of the stock and bond markets, then give a description of what should be done before opening the markets and finally conclude our analysis with what will happen after markets open. China’s capital markets do not have a long history. After the civil war in 1949, mainland China had a stock exchange market called the “Tianjin” Stock exchange market. However, the market was shut down in 1952 because of political acts that targeted capital markets and capitalists. After that date, the capital market remained close until the “opening up” policy set in. At that point, the stock markets reopen in the early 90s (Shanghai Stock Exchange and Shenzhen Stock exchange). China’s capital markets are comprised of the stock and bond markets, securities investment funds, and futures. The stock market can be divided in 3 categories, the A-shares, B-shares, and the H-shares. The A-shares are the most important stock shares in China’s mainland. It is a RMB denominated shares that is issued by Chinese companies and traded on the Shanghai Stock Exchange and...
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...China: the Chinese government reacts By Nate Anderson | Last updated January 19, 2010 12:58 PM [pic] The Google/China story has enough legs to qualify as a "centipede" at this point. After saying that it would no longer censor Chinese search results and that it was ready to pull out of China, Google also admitted to being the victim of a sophisticated cyberattack that went after more than 30 companies. The immediate aftermath of the announcement was a media feeding frenzy—and that was before the Chinese government's various departments even began reacting to the news. Now that they have, it's clear that Google and China are on a collision course, and that the US government is ready to get involved on Google's side. If you've had difficulty keeping up with the story, have no fear: here's a roundup of the news you need to know. Twists, turns, and U-turns An inside job? It's little more than an anonymously sourced rumor at this point, but Reuters says that insiders from Google's own Chinese office may have been involved in the cyberattack on the company. Chinese sources have reported that Google China was cut off from Google's internal network last week while Google security staff investigated the allegations and secured the network. It's for your own good. The Chinese government doesn't look ready to back down from its censorship requirements, and was never likely to do so in such a public way. The government has reaffirmed its need to "guide" the Chinese people...
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...Assignments: Google turns to you, how to develop brand communication strategy into the Chinese market? Market research Situational analysis Recommendations Based the strategy under the conclusion of the market research * Operational marketing 1. Study and understand the market 2. Craft a marketing strategy and plan 3. Develop operational marketing 4. Evaluate returns Managerial project: What a company wants to do Market study project: What a company needs to know We have to follow market trends, evaluating the number of Chinese using google as a metasearch engine, google is a BtoB mood. Start with a PESTEL analysis How foreign policies influence the communication? Problems of national defence, posses so much information about people, it is valuable for any intelligence agencies. Could have some temptations to hack google to get some information from google. Porter’s model to analyse clients, competitors and partners (Micro-environment). GOOGLE: 2004, 40% of the market share, now less than one percent. Google is created in 1998 by Lawrence Page and Sergei Brin. They’re not prepared to assume the rapid growth, nothing to sell, really young and brilliant people but they need a third person Eric Schmidt to sell the product and became top key executive of google as from 2001. Allowed Google to develop services to bring revenues to the company, the source of the revenues of google is AdWords (85%) since 2000. It’s a pay per click...
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...de company´s first president and hoped to exploit China´s thriving economy, excellent universities and multitude of talent to help Google develop new products and expand its international business operations. One of the company´s goals was to revitalize the Google website and offer a search engine catered specifically to the Chinese population. The launch of the new web site and sear engine, Google.cn, enable the company to create a greater presence in the growing Chinese market and offered a customized region-specific tool with features (such as Chinese-language character inputs) that made the chinese user experience much simpler. It also sparked the greatest controversy in the company´s history. In order to gain the Chinese government´s approval and acceptance, it agreed to self-censor and purge any search result of which the government disapproved. Otherwise, the new website risked being blocked in the same way the previous Google. Com was blocked by the Chinese authorities. Google conceded. Type in “Falung gong” or “Tianannmen Square” on Google. Com and thousands of search results will appear; however, when typed into Google.cn all the links will have disappeared. Google will have censored them completely. Google´s decision did not go over well in the United States. In February 2006, company executives were called into Congressional hearings and compared to Nazi collaborators. The company´s stock fell and protesters waved placards outside the company´s headquarters...
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...business in past few years. With the growth of the company, now it needs to raise money form public. ABC can choose to go to New York Stock Exchange in US or go to Beijing Stock Exchange in China to issue stocks and raise money. What they would like to consider is how they can use six pathways by considering both cultural and ethical issues they will meet in two markets to make decisions. The essay will be mainly focus on using six pathways to make decision in China market. The right decisions will make investors invest on them and they can raise money from them. Main body Decision making can be made through six different ways. Throughput Model highlights the various pathways in which ethical reasoning can affect a decision may be helpful for future decision. The first pathway is P-D (perception-decision). The fashion designer of ABC Company is a British. As what he thinks, fashion is to pursue personal’s beauty. So the clothes he designs are tightly shape or sexy which can represent a beauty of human body. The company sell them to China. As a result, it does not receive an expectation marketing share. The reason is that the designer is based on its own perception (P) for fashion without considering Chinese traditional culture before making a decision (D). Clothing forming China is not as important as that in UK or US. Chinese pay more attention to the artistic conception not the character’s body. It can also be seen that Chinese and Americans have different values. Americans...
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...Comment on the legal and regulatory environment in China and its implications for the chinese media. In light of the restrictions imposed by the Chinese government of internet access, how do you think the media industry is affected? On google agreeing to ensure its search content, Reporters without borders commented, “Google’s statement about respecting online privacy are the height of hypocrisy in view of its strategy in China.” However, Google’s Director of Research was of the view, “What’s important to users is access to information, we are giving them that, and we think that’s the most important.” Do you think Google was right in taking this step? Justify your answer. PPPPPPPPPPP Internet censorship Increasingly, Chinese and Tibetan citizens both inside and outside areas of Chinese Government control are seeking information through the internet and other forms of online media. The speed and bredth of information access which these mediums allow is a huge threat to the Chinese Government as they attempt to maintain propagandist views of 'sensitive issues' such as human rights, the Tinananmen Square massacre and Tibet. As such, the Chinese Government goes to great lengths to control the internet and to limit the amount of information its citizens are able to uncover. On 13 January 2010, Google announced that it would consider pulling out of China after it emerged that hackers had been attempting to access the Gmail accounts of human rights activists...
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...to adjust to the Chinese market, while leveraging its source of competitive advantage. This requires a delicate balance. At the US, the brand Walmart is associated with low price rather than quality. In China, where everyone is going for low prices and providing low quality to do so, Walmart’s own brand could be an assurance for low prices but with quality by making the Walmart name about more than just retailing. The suggested strategy in the 2008 Walmart supplier meetings shows that it’s heading in that direction (Business Week). This also follows Gome’s strategy of renaming its suppliers to their own brand (Business Week), but goes beyond it as the foreign brand in China is already associated with higher reliability and quality assurance. This actually holds true in China were retailers do a better job of enforcing supplier quality than the local regulations. With that, Walmart is still able to use its expertise and knowledge in supplier negotiation and distribution system to keep costs down. Although Walmart is a Joint-Venture, the sources do not mention any attempt to leverage the local partner to meet the local market, which seems the opposite to some other joint ventures discussed like Danone and Wahaha. Working together with the local partner to understand where and how the local regulations can be used or adjusted for Walmart’s success and gaining a stronger hold of the potential customer’s heart might help Walmart’s growth and dominance in the Chinese market (The Economist)...
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...Reverse Mergers (RTOs) Defined & Current situation: “A reverse merger (RTO) is a transaction in which an unlisted private operating company becomes public via a merger with a publicly traded shell company, which is generally a company with no material business operations.” (SEC Approves New Exchange Rules to Toughen Listing Standards for Reverse Merger Companies) Beginning in 2007 and continuing into the present, more than 150 Chinese companies have obtained listings on both U.S. and foreign stock exchanges via reverse mergers (RTOs). 2. The structure of RTO (Coming to America) • Matchmakers in China and the U.S. connect businesses in China with American ailing or shell companies and propose a merger • The under writer hires an auditor to prepare the financial statements required for the merger to be approved by the SEC • Once the merger is approved, the company is renamed. Often the names contain the word "China" or "Sino". • The company builds up credibility and moves up to a well-known exchange such as Nasdaq • The company works with an investment bank to sell shares. Analysts catch on, investors start paying attention, and funds buy the stock, all moving the price. 3. Why a reverse merger rather than an IPO? • Reduced time and costs to secure public listing Take US stock exchange as example: A firm can avoid having to go through the lengthy SEC review process. This can save the firm anywhere from 2-12 months • Less legal groundwork needed, and therefore...
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...cannot resist the invasion of ideas. .... Nothing is stronger than an idea whose time has come. “ If there is a quote that can best describe “Alibaba” the company, it is this one previously mentioned. As we will try to demonstrate in this paper, Jack Ma has proven to everybody that he is a great leader, a great motivator, an intelligent marketer, and above all, a great visionary. In this business, he started as an ordinary man by building websites for Chinese companies with the help of friends in the US, and in 1995, he founded China’s Yellow pages, widely believed to be China’s first Internet-based company. From 1998 to 1999, he then became the head of an information technology company established by “China Electronic Commerce Center”. In 1999, he founded Alibaba which presently has over 79 million members – hundreds of millions of users and merchants. Businesses using ALIBABA are counted by the millions, from more than 240 countries and territories. In September 2014, the world has witnessed what has become the largest listing in the U.S. history of the stock market. This company has raised $25 billion for its IPO (Initial Public Offering), overtaking VISA’s $19.7 billion 2008 IPO. How did the company board of Directors manage to do that? It is worth noting that in 1992, Jack Ma, the CEO and founder of this company, then an English teacher in Hangzhou, China, needed to borrow $4,000 to start his first business: a “Translation Agency”, but he could not find the money....
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...and/or regions 4. Making a positive first impression in an unfamiliar cultural context 5. Business meetings and negotiations 6. Mianzi: giving and losing face 7. Cross-cultural team building and leadership 8. 1. Respect the business card. 9. The Chinese place a great deal of emphasis on the formality of exchanging business cards. 10. When Chinese individuals give their cards to someone, they often present it with both hands. To be courteous, you should receive business cards with both hands. Never put the card away immediately in your wallet or briefcase. Rather, place the card on the table or hold it in your hand for some time to acknowledge it and show that you care to know who they are. 11. The Chinese are a very status-conscious people. Make an effort to recognize people’s rank in their organizations. 12. Make sure that you have plenty of business cards of your own before you go to China. It is advisable to translate your name and title into Chinese. Everything else can stay in English. 13. 2. Smile. Don’t look too serious. 14. A smile to the Chinese is like a handshake among Westerners. It is the most common means of communication in China when people meet. The Chinese view a smile as a friendly gesture. Smiling is universal in China. 15. In short, a smile is not a sign of weakness. So don’t look too serious—you may get off on the wrong foot. 16. 3. Learn to talk “metric.” 17. For technical professionals, it is important...
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...China. The company did not have a deep understanding about the Chinese market and had left full control of the overseas operations to Louis Chen. When Mia Foster arrived on board, Levendary’s stock market was traded at discount and the Chinese operations were not following the core company’s strategy. After arguing with Chen via videoconference, Foster decides to go to China on May 25 to have a face-to-face meeting with Chen and resolve Levendary’s position in China. Commercial problem The main commercial problem that the company is facing is an uncontrolled an uncoordinated expansion to a new unknown market. It is the first serious international expansion of the organisation and it is a necessary step for the firm in order to increase profits and market share, since it is facing a dramatic slowdown in domestic growth. All in all, the internationalization process is not following the core business values that had made Levendary Café successful in the US. Failure to address the situation could end up in: * Damaging the brand image and losing market share in the US. * Resulting in overall losses and failing to succeed in the Chinese market. * Causing an important fall of stock prices, a capital flight from current shareholders, and problems to attract more public equity in the future. Recommendations Some key changes need to be addressed in the upcoming meeting between Foster and Chen: * Defining a clear long-term strategy. The company should follow...
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...Google in China Cohort Manara Google In China Corporate Social Responsibility Professor Kenny Tang HULT International Business School Module B Submitted By: Manara Team 10 Hafswa Salim Adriéne T. Smith Ornella Anoh Aravind Sathyanandham Yogesh Ranwa Samer Abou Fakher March 9th, 2014 1 Team 10...
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...company’s background (including their vision and mission). In the finding and discussion part, we explain our company’s problem. It lets us can understand about our company’s problem. In addition, we use the recommendations to explain the solutions. Most of the problems and solutions about our company were using the secondary sources to find out. In the appendixes and bibliography part, we make use of chart to explain the relationship between annual sales revenue and total annual profit. We also show the annual sales revenue and total annual profit of the last five years in that part. PURPOSE OF REPORT (a) Surveyed and analysed our company’s problems. (b) Find out the suitable solution to retrieve our company’s sales and profit. (c) Explain how to solve the problems. INTRODUCTION Our company specializes in medical industry, sales rate and profit of the company was increasing since establishment in 1996 until 2010. In 2011 and 2012, total annual profit was declining from 186.75 million to 99.41 million. This report introduced our company background and found out the company’s problems. After that, we found out solutions to overcome these problems. This report recorded some important details about our company’s sales and profit. Besides that, this report involved discovering something that we had never mentioned about it such as the company potential resources and potential threats. (a) BACKGROUND 1. Become the main and valuable healthcare partner. 2....
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...In today’s economy China has become a big player. If you look at many of the products in your house, most of them probably say made in China. With China being a partner to a lot of US businesses we have to be sensitive to the culture and traditions in China. To put this simple China has a different way of doing business than we do and in order to become successful when expanding into China we need to understand and accommodate those differences. While there are many cross-cultural differences between the US and China I will look at three of them. Three of those cross-cultural differences you need to understand and accommodate before you expand into China are ethnic culture, priorities, and decision making. The ethnic culture of China varies greatly from that of the US. Chinese people are more focused on relationships and group work while Americans are more individuals. Chinese tend to be more courteous and create personal relationships with their co-workers. Americans tend to be more direct and put business above personal relationships. Because of these differences, Americans tend to put conflicts behind them quicker for the betterment of the business and Chinese tend to take things more personally and it takes them longer to put conflicts in the past. Chinese also respect people based on age and wisdom whereas Americans tend to respect success and achievement. When expanding into China you need to address the ethnic culture in order to build a strong team and work...
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...49 Abstract In the mid 2000s, staff at the Chinese division of Yahoo! sent information on one of its users, Shi Tao, to the Chinese government. The journalist had been critical of the Chinese government, and, based on the information sent to the government, Shi Tao was sentenced to ten years in prison. In 2010, e-mail accounts housed by Google were hacked. Many of these accounts belonged to human rights activists. Issues like these pose a conundrum for the United States and international entities that are looking to prevent human rights abuses, including violations of privacy, in countries such as China. This paper will evaluate current and proposed efforts to curb such actions by the Chinese government. I propose the following three-pronged approach to deal with these actions: 1) a vigorous naming, blaming, and shaming campaign; 2) the adoption of a uniform policy by the United States government for addressing the Chinese government on these issues; and 3) the development of coherent, enforceable, and specific codes of conduct by trade associations and business groups that discuss issues of censorship and privacy regarding the internet, their customers, and foreign governments. 50 The Public Purpose Statement of the Problem In the mid-2000s, staff at the Chinese branch of Yahoo! sent private information on one of its users, Shi Tao, to the Chinese government. Shi Tao was a journalist who had been critical of the Chinese government in e-mails on his Yahoo! account....
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