A Chinise Company's Inter Nationalization

8/4/2019 A Chinise Company's Inter Nationalization

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Welcome To Entrepreneurship

Development Presentation

1. Innovation and Liability2. A Chinese Companys Successful

Internationalizing Processes


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Innovation and Liability

Summary:

When we think about innovation, we

always think only the positive sides andnot negative sides. When any negativething arises then who take the liability, this

research paper is based on those points.


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1. Introduction:

2.What is Socio-Economic Liability?a liability results when an obligation is not fulfilled.

2 kinds of liability are:Criminal liability is when there has been acriminal act committed because the guilty partybroke the law of the land.

Civil liability is when an obligation has notbeen met by a party and that party is bound tomake compensation to the sufferer.


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Socio-economic liability is the failure of theregulatory body to meet social responsibilitywhich arise from economic decline fromcommercialization delays.

When this occurs the media coverage changesocial perception of the innovation.

when a regulatory failure occurs, there are somesocial externalities which are created by otherfirms and by consumers.

StarLink corn had only received regulatory

approval for use as animal feed.


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The US Environmental Protection Agency (EPA)required Aventis to establish a system to ensurethat all StarLink corn produced be channeled

into animal feed markets.

Aventis established Stewardship Program toachieve the EPAs objective but this program

failed miserably.


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Those who are responsible for the creation ofthis liability are:

Aventis

EPA The US lost corn sales to Japan because of the

adventitious presence of StarLink.

A very localized physical problem can havenegative global financial impacts in todays

global marketplace.


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3. The Other Players: Courts and Society:

Some civil society issues can become very

contentious due to the debates that originatefrom legislators and the debates that originatefrom the professional legal community.

Distribution of wealth

a. European Approach

b. North American Approach


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4. The Road Ahead

The issue of liability management regardingtransgenics would seem to be related to three

key features of present day society.

Key features are:

Consumer trust

Science based risk assessment process Concept of consumer empowerment


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A Chinese Companys Successful Internationalizing

Processes

Summary:

This paper is based on how the internationalizationprocess of a Chinese company Haier became

successful. Their target was to become No.3appliance maker in the world. Initially, they involve ininternationalization process passively and thenactively. Later they became successful in

internationalization.


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1. Introduction:


Processes


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Processes

2. Internationalization in the Chinese Context2.1 The initial involvement of internationalization:

China did not get success because of

Artificial and regionally restricted internationalization

Close door policy.

2.2 The passive process of internationalization:

China started internationalization passively by

Open door policyConducting some political and economic changes

Allowing foreign internationalization


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A Chinese Companys Successful InternationalizingProcesses

2.3 The active process of internationalization:

China began to internationalize actively by

Shifting from central govt. economy to market ledeconomy

Evolving from lower levels of exporting, licensing tohigher levels of international joint ventures, and

partially or wholly owned subsidiaries.


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3. An overview of international theories

3.1 The Uppsala Internationalization Model (U-Model):

Market knowledge and market commitment affects both

the commitment decisions and the way current decisionsare performed .

3.2 The Innovation-Related Internationalisation Model

(I-Model):Summarization of innovation related perspective of U-model.


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Bilkey and Tesars Model:

Stage 1: Not interested to export.

Stage 2: willing to fill unsolicited orders or ispartially interested

Czienkota and Cavusgils Model:Early Stage: More interested and active.

Next Stage:


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4. Evaluation of the stage models U-model has been used for many companies in different

countries.

I-model is very useful for small and mid-sized company.

Criticisms:

1. These models are merely historical descriptions.2. The implications for management are not their central

themes

3. They offer relatively little advice on how to manage the

transaction for domestic companies that are undergoinginternationalization.

4. Most of the stage models are based on their specificcontext and are restricted to small- and medium-sizedmanufacturing companies.


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5. Challenges for internationalization theories:

Accelerated internationalization

New ventures with having both opportunity and

risk of newness ( poverty of resources) Close door policy ( china was an insignificant

player)

Limited technological innovative capability.

Uneven-cross regional development with largestconsumer basis.


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6 Haiers internationalizationprocesses

6.1 Haiers exporting:

Total exporting revenue $10 billion

Increased from 2001 37%Countries and regions 200

Haiers Export in 2002

Europeancountry

Japan

Southeast Asia

OthersEuropean counties 60%

Japan 20%

Southeast Asia 16%

Others 4%


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6.2 Dawar and Frosts survival

strategy theory andHaiers internationalization

strategy

(1) Stage one: a defender:

Competitive assets andglobalization pressure arelow.

(2) Stage Two: a contender:Competitive assets are high

and globalization pressure islow.

(3) Stage Three: both anextender and a

dodger: Advantages of

extender strategy application.


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7. Haiers empirical challenge to traditional stagemodels of internationalization

The initiation of exporting of QGRF (Qingdao General

Refrigerator Factory, predecessor of the Haier Group)wasto the well-developed country Germany

not the psychologically close country

nor to enter new markets with successively greater

psychic distance

nor the neighbor countries,

which shoes an practical challenge to the stage model.


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The motives underlying Haiers creative internationalization

processes are:1. Building a permanent international market position

2. Meeting competition

3. Following customers

4. Exchanging of threat first difficult, then easy,5. Shaping the competition

8.Conclusion:

Our biggest challenge is not that we are backward but we areafraid we may not be strong enough and only by activelytaking part in global competition can we seize a chance tosurvive.

The limitation is that Haier is the unique case that has been

proved to successful in China.


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Any Question?

Thank You

A Chinise Company's Inter Nationalization

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