Write a 7 pages paper on doing business in china. From the criteria set in the industry analysis, some essential and desirable characteristics have been identified for the selection of the country. The first essential characteristic of the country is the availability of skilled labour because of the labour-intensive nature of furniture industry. Second, to establish the production units closer to the customers, the raw material should be easily available. Third, to offer competitive furniture prices, access to cheap labour is another essential characteristic. Fourth, access to automated technology is essential in the selected country to enhance the efficiency of operations. Another essential characteristic is the availability of a number of suppliers in the market to keep the bargaining power of suppliers low. The first desirable characteristic identified for the selected country is the stable economy to cushion the impact of the recession. Second, the country with the high spending power of consumers and quality of living style will be preferred. Third desirable characteristic is the less competitive market structure or less numb of international brands. Finally, a country with no protectionist policies will be a suitable option. This report has been designed for Global Ventures PLC and it aims to justify the launch of a proposed venture in China.
The country in which I have planned to start the proposed venture is China. I have found that China actually fulfils most of the essential and desired characteristics which I have identified. As discussed previously it is essential that the selected country has highly skilled labour, labour in China in the furniture industry is highly skilled.
The macro-economic analysis of China has been done to analyse the impact of political, economical, social and technological factors. Government control is significantly dominant both on international and domestic .companies in China. .