An examination of the joint venture agreement between the Australian company Batrionics and Red Dragon Enterprises, a Chinese manufacturer.
Written in 2009; 2,170 words; 12 sources; APA; $ 67.95
Paper Summary:
This paper explains the rationale behind Batrionics' entry into a joint venture agreement with a Chinese manufacturer, Red Dragon Enterprises. The paper discusses how the owner of Red Dragon Enterprises was engaging in unscrupulous activities that caused Batrionics to lose a considerable level of its capital. The paper then considers the options and recommends that Batrionics should continue to pursue this venture to recoup the investment that had already been made. The advantages of implementing total quality management in the Chinese factory are also discussed.
Outline:
Description of the Nature of the Product
Environmental Justification for Country Recommendation
Competitor Identification
Market Entry and Expansion
Country-of-Origin, Consumer Ethnocentrism and Consumer Animosity
Market Segmentation, Target Marketing and Positioning
Recommendations
From the Paper:
"Batrionics is an Australian manufacturer of different types of industrial batteries. In order to enhance the cost competitiveness of the company, the owner Rex Adams had moved the manufacturing operation to Taiwan. However price sensitivities in Taiwan were making the market unfavourable. Therefore he decided to expand to China. This market has one of the lowest labour costs in the world. Additionally it is the fastest growing market in the world. Therefore the Chinese market provided a lucrative opportunity for Batrionics. Rex Adams decided to enter a joint venture agreement with Red Dragon Enterprise, a local manufacturer of related products. Although there were some quality issues, Rex Adams thought that his company's knowledge and skills could be leveraged against Red Dragon's resources to build an effective manufacturing operation in China."
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