Theme
* China is one of the biggest market in the world and it also has the largest growth potential.
* The operations in the country was always decentralized but foreigners thought it to be centralized and bureaucratic.
* Many foreign companies invested in China by joint-ventures, acquisitions or by direct ownership. But most of the foreign companies failed because they were not able to work properly with the Chinese and many were desperate for an exit strategy.
* The average Chinese beer consumers were poor, they preferred the local brands and price was the main driving factor.
* The manufacturing infrastructure and the political conditions were not very good either. There were also many problems while distributing the beer.
* Brewers such as Anheuser-Busch wanted to have a share of the huge Chinese beer market and they in order to do so acquired Harbin Brewery.
Main Issue
HOW THE GOVERNMENT AND MANAGEMENT SHOULD REGULATE AND MAINTAIN THE FIERCE COMPETETION IN THE CHINESE BEER MARKET IN ORDER TO PROTECT THE WORKERS INTEREST AND THEIR JOB SECURITY AS WELL AS TRAIN THE WORKERS TO BE ABLE TO COPE WITH FOREIGN ENTRANTS AND MANAGEMENT TO HAVE A BETTER AND SAFER WORK ENVIRONMENT ?
SWOT ANALYSIS
Strength
* Although most Westerners believed China to be highly centralized and bureaucratic, in reality the country always operated with an extremely decentralized power structure in which the national Chinese Communist government simply added an additional layer of bureaucracy.
This is a very potent strength for the union because although it is believed that both government and Chinese management are centralized but in reality the union holds a significant amount of power over their work matter. The union is very strong and they are allowed to exercise their power which is not known to foreign firms.
This also limits the ability of the foreign firms to have control over the local workers as they are dominated by strong...