Free Essay

Ups China

In:

Submitted By prashanty635
Words 372
Pages 2
UPS IN CHINA

 China is perceived as a strategic location, by UPS, for freight forwarding industry.
 UPS is following a strategy to increase its base in Mainland China.
 Chinese government is following a drive to join the World Trade Organization, and phase out restrictions such as prohibiting controlling stakes in joint ventures and limiting the local partner to choose companies to partner.

Q. Discuss the possible motives for UPS plans?

 Expand its express-delivery service network on mainland China
 UPS plans to open 18 new offices in a 50-50 joint venture agreement with Sinotrans
 Intents to sign an agreement with Sinotrans to invest and transfer information technology and management

Q. From the perspective of UPS what competitive advantages and disadvantages characterize China’s inward FDI regime

Advantages

 Capture market size and growth prospects
 Economies of scale, fuelled by abundance of cheap labor
 Mitigate the possible problems of foreign exchange
 Risk sharing by JV
 Transfer core management expertise
 In China’s drive to join the World Trade Organization, China has promised to phase out prevalent restrictions
 Overcome barrier to entry

Disadvantages

 Lack of “soft” financial infrastructure (e.g. credit ratings agencies, managerial skills…)
 The non-existence of appropriate investor protection mechanisms
 Sinotrans has joint ventures with UPS competitors
 An area of restricted investment.
 The Chinese government prohibits controlling stakes in joint ventures and limits the local partner from which to choose

Q. Suggest alternatives to the organic growth UPS intends to pursue.

Acquisitive Growth where one firm buys controlling interest in another firm and the acquired business is integrated within current operations or becomes a subsidiary of the acquirer's portfolio, may provide an attractive alternative to organic growth because it enables managers to acquire bundles of resources. Furthermore, a strategy of acquisition may enable a firm to take advantage of growth opportunities by accessing resources that are complementary in nature to the resources that the firm already controls.

As China is going to phase out restrictions hence there are opportunities for UPS to have higher controlling stake in Chinese firms like sinotrans. With this growth strategy UPS will have more control over investment and how to transfer technology & management expertise.

----O----O----O----O----O----O----O----O----O----O----

Similar Documents

Free Essay

China Rev Up

...The documentary: “China Revs Up” talks about the quick industrialization of China, and the problems that tag along such an aggressive industrial program in a short period. China once had over a billion poor people, but now it has the world’s fastest growing economy. China’s economy has been growing at an amazing rate of 8% per year for more than 20 years. While the economy is growing, the need for energy is growing at a faster rate. The documentary mentions that China could match the carbon emissions of the US projected by 2030. China’s energy is mainly supplied by coal, and 7 of the world’s 10 most polluted cities come from China. The major problems are due to overpopulation and present economic thinking, and also globalization. As documented in the film, The United States has set the benchmark for high living, high energy use. The US is one of the most consumptive countries in the world and China has really taken western consumerism as its model. Since the capitalist economic reform in China in the 1980s, the Chinese economy has been rising significantly, and the typical income has multiplied by 4 in the past 2 decade. People are leaving their traditions and their villages and farm lands to move to the city. As more and more shopping malls are build all over the country, and as a result energy consumption has risen drastically. China burned 25% more coal than the US in 2001. China’s economy grew incredibly quickly and with no concurrent development in environmental policy. The...

Words: 686 - Pages: 3

Premium Essay

The Effects of the Reform and Opening-Up Policy in China

...The Effects of the Reform and Opening-up Policy in China Chenqian Yu(Nina) IE204 Academic Writing III Eassy 2 03/10 The Effects of the Reform and Opening-up Policy in China China has gone through a rapid economic growth over the past three decades since the previous premier Deng Xiaoping who was a pioneer of “Socialism with Chinese characteristics” decided to reform and open to the outside world in around 1980. This is the turning-point of China’s economy and also the symbol of China entering a new era. Before this policy came out, China was a poor and backward self-sufficiency country like an isolated island in the world. The 30 years’ reform and opening-up has shifted China to an open market for the world and raised people’s living standards; meanwhile, it also caused the imbalances in China’s economy. One of the effects of this policy is that it transformed China from a self-contained economy into an open-market economy. Nowadays, the economic activities which take place in China are much more than before, so more and more multinational enterprises are coming to China, such as Adidas, Coca Cola, and Starbucks. In the meantime, according to Charles(2014), Chinese domestic companies increasingly began to invest across national borders and privatization has been more wide-spread. Before the policy was put forward, China is an autarkic country where people were not able to have multiple choices on products in the market. However, now international...

Words: 625 - Pages: 3

Free Essay

Review of a Movie

...The movie UP is perfect for ABC yeah the movie of the house flying with a bunch of balloons. The movie consists on a young Carl Fredrickson meets a young adventure-spirited girl named Ellie. They both dream of going to a lost land in South America. 70 years later, Ellie has died. Carl remembers the promise he made to her. So he decides to go in an adventure, while he gets stuked with a young scout kid The movie up is perfect for ABC because it covers your basic requirements. The movie UP does not contain violence or profanity it is classified PG, in addition the movie UP has a perfect length of 1hr 29 minutes. ABC wants this movie because this points are important to consider, it is important because there is going to be children of a young age that could be sensitive at violence, that could lead to an unwanted behavior. Furthermore older people can be more susceptible to violence and could dislike the movie if so, your audience will really love this movie. Don't forget about the perfect length you have to take in notice that the movie UP is not a long movie so that kids can stay focused at the movie, and is not short so that you have time to appreciate it you must consider this factor a lot so that you can make you audience happy. I guarantee that they will love it. Paul Chambers from CNN Radio, ''Pure joy and one of the best films of the year. You gotta have a good story, and this one is a gem. It even made a bit misty-eyed. Good stuff from Pixar''. Also Dan jardine from...

Words: 728 - Pages: 3

Premium Essay

Movie Review

...UP (2009) Cast: Edward Asner, Christopher Plummer, Jordan Negal, Bob Peterson Director: Pete Docter A 3D animated film named ‘ Up ‘ which directed by Pete Docter, produced by Pixar Animation Studio and released by Walt Disney Pictures portrays the adventure of an old widower named Carl Fredrickson (voiced by Edward Asner) fulfilling his lifelong dream along with a young Junior Wilderness Explorer named Russell (voiced by Jordan Nagai) and a talking Golden Retriever named Dug (voiced by Bob Peterson) Carl Fredrickson always dreams to become an adventurer ever since he was a kid. He then met Ellie and both of them became friends. Both of them idolized explorer Charles Muntz (voiced by Christopher Plummer) and Carl has promised Ellie he will move their clubhouse, an abandoned house in the neighborhood to a cliff beside Paradise Fall in South America. In just 8 to 15 minutes, the film has shown how Carl and Ellie grew up and got married. As both of them grow older into their old age, one day Carl decided to surprise Ellie with two flight tickets to South America but unfortunately Ellie suddenly becomes ill and passed away. Sometimes later, a court orders Carl to move to a retirement home because he accidentally injured a construction worker for damaging his mailbox. However, instead of moving to a retirement home, Carl decides to fulfill his promise to Ellie by tying balloons to his house and make it fly. A young Wilderness Explorer named Russell accidentally...

Words: 788 - Pages: 4

Premium Essay

Coca Cola

...brand and its people are the assets that make up the companies foundation. The Coca -Cola Company is as a workplace that is inclusive to diverse people, talent and ideas. This philosophy is also incorporated in the Companies’ ability to be a global business. Currently, The Coca -Cola Company operates in more than 200 counties from the United States to Beijing from Montreal to Moscow, Coca Cola continues to be one of the most successful corporations across the globe. The Coca -Cola Company has experienced success in global markets, most notably in China. The Company’s relationship with China began a decade following World War I, and in 1979, was the first US Company to be invited to China to distribute its products. Although The Coca Cola Company has a long -standing relationship with China, they did experience a setback with its attempt to purchase the Chinese company Huiyuan Juice. The Chinese government rejected the deal due to it’s increased economic stability and it’s attempt to avoid a monopoly. This one setback is not a reflection on Coca Cola’s ability to be a diverse and global corporation. Their ability to understand many diverse cultures have led to their success in the global marketplace. References: www.thecoca-colacompany.com Retrieved 4/18/2009 Rein, Shaun (2009 March 24). What Coca -Cola Did Wrong, and Right, in China. Retrieved April 18, 2009, Web site: http://www.forbes.com/2009/03/24/coca-cola-china-leadership-citizenship-huiyuan.html Weisert...

Words: 291 - Pages: 2

Premium Essay

Apple

...and so on. Mirinda (Mirinda) PepsiCo honor one of the products. Ingredients: carbonated water (water, carbon dioxide), sugar, citric acid, sodium benzoate, food flavor, vitamin C, lemon yellow, sodium citrate, sunset yellow, carmine. Flavors: orange, apple, black currant, grapefruit, mango, lime, etc. Qixi (English formerly 7-Up) is the Dr Pepper / Seven Up's lemonade brand, bottled from the 1987 production of the product. Outside the United States, seven are registered trademarks of PepsiCo. Seven formerly known as Bib-Label Lithiated Lemon-Lime Soda, 1929 in St. Louis, Missouri to begin production. "Jiadele" is the world's leading sports drink, has 35 years of sports science background. It added the missing movement in the body of water and electrolytes, while also providing carbohydrates to enhance exercise endurance, "the disintegration of the solution is more thirsty thirsty" is the "Gatorade" is unique. Today, the "Jiadele" sports drink industry in the United States holds 85% share. This time, Beijing, Tianjin, Hebei and other places selling lemon ice passion, energy orange ice, and ice orange power three products produced by the Pepsi-Cola China Beverages Group. [Tropicana] the main ingredients are colorful: water, sugar, mixed fruit juice concentrates (apple, cantaloupe), citric acid, thickeners, food flavor, vitamin C, sodium citrate, emulsifier,...

Words: 265 - Pages: 2

Premium Essay

Coca Cola

...[Author] [Institution] Introduction Globalization Over the recent decades, particularly after the fall of the Iron Curtain, the methodology of globalization got quicker and popular in so many economies. The most capable variable of globalization is finance, showed in the vicinity of transnational partnerships working in numerous nations and utilizing the new verifiable conditions further bolstering their good fortune. Globalization has an impact on virtually every aspect of our daily lives. For example, the clothes that we buy from a local retailer, incoming network Woolworths; can be manufactured in Australia or China. Entering into an outside business sector is similar to running across new domain for entrepreneurs. Remote nations have diverse laws, economies, business methodologies and coin. Social contrasts can additionally obstruct a nation's prosperity. Despite the fact that each business ought to suspect a tremendous learning bend, entering a remote business sector could be simpler with the reception of a couple of techniques (Krishna, 2005). Coca Cola One of the most popular carbonated drinks in stores, restaurants, and confection machines is coca cola and not just in one or two countries but it has got its operations worldwide. It is conveyed by The Coca-Cola Company of Atlanta, Georgia, and is customarily suggested fundamentally as Coke (an enlisted trademark of The Coca-Cola Company in the United States since March 27, 1944). In the first place...

Words: 3532 - Pages: 15

Premium Essay

Internation Business Opportunity for Garson

...political, geographical and economic factors, we should know how to take advantages from other countries to maintain competitiveness to gain success in the global marketplace (Rothenberg LE 2003). GARSON Corporation is one of the most famous automobile accessories companies in Japan and it already expanded its business to United State as the first step of internationalization. In this report, we are going to explore the possibilities of expanding business in China. The report includes the analysis of the existing automobile accessories market in China, and the country analysis from different perspectives is used to see if China is a good environment to expand the business in it. It is then recommended with the internationalization process, market entry strategy, human resources management strategy in investing in China. All the analysis can help GARSON to confirm its move to investing in China as its 2nd country for business expansion. It also raises some points for GARSON to pay attention to when investing in China. 1. Company Background GARSON Corporation is an automotive accessories company which is originated in Japan. It is established in July 1990 and is dedicated to research and development of high-grade automobile accessories and advocates a luxurious and high-quality life with cars. GARSON has established cooperation with Swarovski Company in Austria, which is almost the pronoun of luxury crystals. With the partnership of Swarovski, all of the GARSON products...

Words: 3415 - Pages: 14

Free Essay

Could China’s ‘Humiliation’ Have Been Avoided?

...interstate system and global economy. China would become exposed to Western imperialism, and such foreign aggression and encroachment epitomizes what the Chinese call the “Century of Humiliation” – the beginning of the period being attributed to this war. The question that is posed today is whether China could have avoided humiliation. I believe that the answer is no, and such an event was inevitable due to the irreconcilable cultural traditions of China and the West. Also see how tradition may have placed China at a disadvantage First, it is important to address the worldviews belonging to both China and the West. For China, their world was based upon the precepts of Confucianism, which preordained the natural order. Heaven was the source of all authority and men were subject to the will of heaven. The emperor received authority from heaven and has absolute power. The result is a natural hierarchic order that makes inequality a fundamental part of society, reflected by the kowtow (explain) which would be performed to one’s superiors. China applied these norms of internal society to the international, thereby claiming to be the central state and creating what is known as the Sino-centric international system, based upon the belief in their cultural superiority and claim to universal kingship. THose beyond its borders were looked down upon as barbarians. This creates a lack of intergovernmental relations. Instead, interaction between China and other units came through a system...

Words: 1227 - Pages: 5

Premium Essay

Acqusition

...Cisco vs Coca Cola Tadeusz Czuprynski MGT 450 Date: 21 January 2012 For: Carol Jones Abstract: The basic purposes of this essay is to emphasis and culminate the principles of Acquisitions by describing the application of the knowledge learned, with the following companies of Cisco the technology giant and Coca Cola the soft drink giant. There are many specific goals that companies may be looking to achieve by dong this, but the main underlying reason is to guarantee the long-term sustained achievement of fast profitable growth for their business. They have to keep up with a rapidly increasing diversified global market and increased competition. Nowadays, with the struggle for competitive advantage becoming stronger and stronger, it is almost essential to form alliances. An acquisition is the purchase of one business or company by another company or other business entity. Consolidation occurs when two companies combine together to form a new enterprise altogether, and neither of the previous companies survives independently. Acquisitions are divided into "private" and "public" acquisitions, depending on whether the acquiree or merging company (also termed a target) is or is not listed on public stock markets. An additional dimension or categorization consists of whether an acquisition is friendly or hostile. Whether a purchase is perceived as being a "friendly" one or a "hostile" depends significantly on how the proposed acquisition is communicated to and...

Words: 1468 - Pages: 6

Premium Essay

China

...2. Dealing with China: An Insider Unmasks the New Economic Superpower As President George W.Bush’s Treasury secretary from July 2006 through January 2009, Henry Paulson was the president’s leading policy adviser on both domestic and international issues. He is well know to the world at the time of the financial crisis in US. Henry Paulson has made over 100 trips to China and developed intimate relationships with China’s political elite, including Presidents Hu Jintao and Xi Jinging as well as its banking giants, most notably the industrial and Commercial Bank of China’s chairman Jiang Jianqing. Therefore, he has a depth knowledge about China’s economy and still been watching China’s emerging economy until now. In his new book, he describes China’s recent rise to global supremacy and the challenges that lie ahead. He also points out that China is American’s most important economic partner and that how to corporate intelligently to make both nations benefit in the future. In the United States, banks and capital markets are more stable and better capitalized than they were in the financial crisis 2008. As changing in government regulators and American banking system, US still the largest and richest economy, with a normal GDP more than twice the size of China. But according to Paulson, he warns “It’s not a question of it, but when, China’s financial system, particularly the trust companies, will face a reckoning and have to content with a wave of credit losses and debt restructuring”...

Words: 1151 - Pages: 5

Premium Essay

Ap World History Dbq

...through their conquering nature, certainly contributed to the success of the real hub of the world in 1500, they were not the front-runners, China was. I honestly had not thought about any country in Asia when giving my initial answer (perhaps because of the early Euro-centered education I received that we all discussed?). China was the center of the world in 1500 for many reasons: their population tripled, urbanization spiked, and productive capacity boomed. It really boiled down to the fact that all money (mainly silver) was flowing into China while manufactured goods were flowing out. At the...

Words: 927 - Pages: 4

Premium Essay

Buick

...that where Buick lacked in making a true global strategy. Buick has either made cars for the U.S. market and distributed them to other countries or it has taken cars designed by GM for other markets (Opel in Europe, Holden in Australia) and relabeled them as Buicks. Either way, the past has not really reflected a cohesive global strategy. 2. 5 GM’s global manufacturing facility in China such as Shanghai GM does solidify its position as global strategy. GM is using Foreign Direct Investment route of setting up facility of manufacturing Buick vehicles in China where it has received overwhelmed response on having over million vehicles bought by Chinese consumers. GM has positioned itself as global company by selling left hand vehicles in right hand driving nations such as China, Japan and Great Britain. GM Buick using Direct Investment approach in China signifies its strong presence of achieving success which they did not witness in home nation United States. GM Buick does solidify itself as Global Strategy as it has been trying to market its vehicles as premium vehicle line in China and other nations. The short answer to this question is “no.” GM has long had manufacturing facilities throughout the world. But as noted in question 1, that has resulted in lots of cars made for lots of markets under different brands. Then, that mix is further blended...

Words: 1074 - Pages: 5

Free Essay

How Accurate Is It to Say That the Spread of Revolutionary Beliefs Was the Main Reason for the Fall of the Qing Dynasty 1911-12?

...fall of the Qing dynasty 1911-12? This essay will be looking at how much of a contribution the spread of revolutionary beliefs in China had in the fall of the Qing Dynasty. In order to determine the importance of this I will therefore also be looking at other factors such as, foreign interference, double tenth and the inability to change. I believe it is partially accurate to say that the spread of revolutionary beliefs was important in the downfall of the Qing Dynasty; however it wasn’t necessarily the most important factor. This can be determined from the effects of Sun Yatsen’s anti-government movement in China. Initially, the extreme need for revolution and reform stemmed from Cixi’s need and desire for conservatism. Her oblivious attitude towards the failure of the government angered many people and essentially gave reformers the ammunition to spread their own beliefs. As previously mentioned, Sun Yatsen was one of the people who felt strongly about changing the way things worked in China. He was particularly open minded and due to his education abroad had adopted a Westernized style of thinking. Thus, Yatsen attempted to modernise and regenerate China by removing foreign control and reasserting their unique character and greatness by forming the revolutionary alliance in 1905. Within this, his greatest belief was that the only way in which China would be able to modernise was if they became a republic, so his party formalised this concept as the “Three Principles of the People”...

Words: 1312 - Pages: 6

Premium Essay

Buddhism in China Dbq

...Buddhism in China DBQ Depending on the political stability, the responses to Buddhism in China were different. Between 220 CE and 570 CE, a time of political instability, most people had positive attitudes towards Buddhism, and after 570 CE, a time of political stability, most people had negative attitudes towards Buddhism. Most positive attitudes towards Buddhism occurred between 220 CE and 570 CE due to a need for a sense of salvation. According to Buddha, Buddhism is all about sorrow. Buddha believed that life was surrounded by sorrow, no matter what class in society a person was. He believed the basic teachings of Buddhism had to do with sorrow; what it is, where it comes from, and how to stop it. (Doc. 1) Zhi Dun, a Chinese scholar, author, and confidant of Chinese aristocrats, believed that people who served Buddha all throughout their lives would end up in Nirvana. The goals of Buddhism were to end up in Nirvana. Buddhism was very appealing during a time of instability like the Era of Division. (Doc 2) Also, according to an anonymous Chinese scholar, Confucius is not as good as Buddha. The scholar was very positive towards Buddhism. This was also in a time of political instability. (Doc 3) Zong Mi, a leading Buddhist scholar in the ninth century also believed Buddha taught well. Even though China was in a state of stability, he still had a positive attitude towards Buddhism. He believed that both Buddha and Confucius were good teachers. (Doc 5) However, most people...

Words: 461 - Pages: 2