Collaboration and Performance in Markets †MyAssignmenthelp.com

Question: Discuss about the Collaboration and Performance in Markets. Answer: Introduction: The question seeks an explicit description of numerous advantages that companies such as Tata apply to transform into large industrial conglomerates. According to Alfaro and Chen (2014), a conglomerate company is a term used to define a highly differentiated field company. Typically, a conglomerate company operates two or more different business lines under a single and unified corporate structure. Initially, Tata was established as a textile company, but later expanded to include various business operations such as schools and steel production among other operations. Tata has gradually been increasing its dominance of the Indian market since 1990s enabling it to develop an extensive business network that include expanded production resources and large capital among others. According to Buckley and Ghauri (2004), big companies such as Tata employs various advantages to remain large industrial conglomerates. Some of these advantages include increased access to capital under favourable terms from financial institutions (Buckley and Ghauri, 2004). This has allowed Tata to expand its operations and transform into a massive industrial conglomerate. Tata also banks on its strong corporate image to sustain its strong business connections with numerous high-quality market partners. As a result of this positive corporate image, Tata has been able to develop and maintain its good relationships with both national and state governments in the country (India). Besides, Tata has a very competitive cost structure that is generally attributed to Indias low cost labour. The company has also been able to achieve this low cost structure through using its subsidiary companies such as Tata steel to provide necessary raw materials for its manufacturing processes. Moreover, Tata banks on Indias high tech talent and large mineral resource bases that have increase its competitive advantage among other international business competitors. The company has similarly developed a strong interdependence relationship with the Indian Government, a cooperation that is instrumental in a socialist economic system like Indias. This, among other advantages discussed have helped Tata to transform into a large industrial conglomerate. The question is asking about how Tata can uses the above stipulated advantages to flourish especially in foreign markets. Since Tata has vast access to both financial and human resources, and on relatively favourable terms, the company can use such advantages to attain pertinent data and information in the market. Moreover, according to Dunning and Lundan (2008), large and quality capital requirement for entry into the automobile industry in emerging markets implies that Tata has an upper hand given its massive financial resources. Such advantages will enable Tata to better understand the operations and need of the foreign markets by tailoring their products and strategies to heighten their market success. Moreover, Tata could also use its past rich market experiences and vast operational knowledge to increase its chances of success in foreign markets. The companys various business sectors such as Tata steel could also be used to facilitate the production of high-quality products to enable Tata to reduce its operational costs in its foreign market activities. Besides, given the companys well-established business connection with high-quality market partners, it can easily reduce associated risks and capital requirements in foreign markets. Tata could also use such connections to develop and sustain good relationships with governments and other important market players. This could enable them to successfully overcome infrastructural-related challenges among other associated problems especially in foreign markets. Tata has used these advantages and many others to grow its reputation and to further expand its access in other established markets such as the U.S and Europe. Undeniably, Tata has also been able to use its advantages such as low cost labour and presence of relevant professionals to surpass some of its close global market competitors. For example, the company can use the low-cost labour structure in Indonesia to manufacture more cheap cars. The company aim at cementing its already strong production capacity in emerging markets. Moreover, Tata, together with its long years of market experience, aim at remaining a global business leader. This question seeks to explore the relationship between trade barriers, bure aucracy, country risk and the advent of Tata as an important player in global trade. Irrefutably, according to location theory of internalization, the location of production is based on factors such as trade barriers, high tariffs and related costs of operations among others (Keller and Yeaple, 2009). For example, most multinational companies fear operating in countries that do practice repressive bureaucracy such as India. Similarly, authoritarian trade restrictions and unnecessary political influences could significantly affect operations of a multinational company. According to Kim et al. (2015), a bureaucratic system of governance may occasionally introduce certain trade barriers that may increase the risk of doing business in a particular country. Throughout its operations, Tata has always followed strict government legislations and laid-down standards of operations. These government legislations and issues include various trade barriers, government interferences and the associated risks in the respective countries of operations. The inherent ability of Tata to remain efficient in India, a market that is crammed with numerous trade barriers, business regulations and various government interventions is commendable. In India, importation has to receive special government approval given the numerous import tariffs on vehicle parts and components among other commodities. Political influence from the West Bengal Politicos have resulted into widespread labour unrests further paralysing Tatas operations in certain parts of India. This question aim at examining the specific role of decreasing government intervention in Tatas global market success especially in India and the ability of the company to sustain its internalization efforts. According to Madhok and Keyhani (2012), every corporation wishes for a market system where most of the operations in the marketplace are conducted freely and the respective governments rarely intervenes resulting into reasonably balanced market conditions. A market with decreased government intervention stresses on the existence of minimal externalities, and that related external costs are adequately controlled. According to Goldstein (2009), decreasing government control implies that the forces of demand and supply are allowed to control market conditions. Indeed, the Indian government has for a very long time been discouraging international trade and imposing repressive trade restrictions and unnecessary bureaucracy. For example, the Indian government and state-owned enterprises for e very long time influenced various procurement activities among corporations operating in the country. However, some of these high trade barriers were loosened in the 1990s enabling Tata to increase its international trade operations in India. For instance, Tata started producing cars in joint ventures with various companies around the world such as Fiat and Daimler-Benze. The company also acquired a 30% stake in an Indonesian Coal mining company to sustain its power plant in India. Correspondingly, the company is taking advantage of its family conglomerate business networks to strengthen its market position as a major government supplier. In general, decreased government intervention rejuvenated Tatas global market operational successes particularly in India. The company has been able to sustain its internalization efforts majorly through joint ventures and diversification of its production processes. This question seeks to scrutinise the growth rates and other specific features of emerging markets, and such markets that Tata should target to sell its products and why. Ideally, Tata should target markets comprising of comparatively large sectors of low-income consumers to sell their products. According to Shrader (2011), emerging markets are majorly characterised by larger populations and stabilizing economies. Also, income levels in such countries are increasing steadily, and this implies that an increase in disposable income and purchasing powers. Some of the emerging markets that Tata Company should target include Thailand, Vietnam and Indonesia markets that have a rising population of middle income earners. These countries also have expanding per-capita incomes, and this implies an increase in purchasing powers which is good for a company like Tata. The increased purchasing powers can be attributed to the increase in income level among many households in these emerging markets. Thus, due to enhanced disposable incomes, many families in these emerging markets can manage to comfortably purchase cheap Tata Cars. This is because most of Tatas products are charged moderately low compared to other related merchandises. Another reason why Tata should target the aforementioned countries is that there is a large population of motorcycle-driving customers that could really make use of cheaper Tata cars. For example, in Indonesia, there is an increase need for alternative transportation system aside from the famous motorcycles that are generally family-oriented. Therefore, Tata should offer these consumers in the mentioned emerging markets cheaper Nano cars to further facilitate their movements. Tata should also take advantage of increased brand recognition especially after its acquisition of Jaguar and Land Rover to venture into these emerging markets. Therefore, Tata Company should feel more confident investing in these identified emerging markets to capitalize on their massive economic growth among other potentials. The question is asking about such country-level issues that Tata should take under consideration to evaluate the prospective of different emerging markets, and how such factors can possibly affect its operations. Some of the country-level factors that the company should consider in its evaluation of the prospective of various emerging markets include per-capita income and the population of the middle class. Also, the company should comprehensively evaluate the market size of the emerging markets to ascertain whether such markets are feasible for international operations. Besides, the company should determine the intensity of the market operations and the rate of market growth. Other factors include market consumption capacity, commercial infrastructural developments, economic liberty, market receptivity and country risk. For instance, violent protests from the surrounding communities can significantly affect the production activities of a particular company. Therefore, before investing in a particular country, Tata should closely scrutinize these country-level issues that can seriously influence its operations if not properly mitigated. This question seeks to establish how Tata can advance its CSR initiatives towards future consumers in emerging markets as it prepares to expand its international operations. According to McWilliams and Siegel (2011), CSR is increasingly being perceived by many companies as a creative opportunity to increase their competitive advantage and implementation of organizational objectives. Research by Slack (2012) further stipulate that CSR is a companys direct involvement in the welfare and interest of consumers and other stakeholders. As such, to enhance its corporate social responsibility (CSR) towards its future consumers particularly in emerging markets, Tata should direct immense investments towards raising educational standards, health promotion and various grass root agricultural development projects. For instance, Tata Steel should increase its investments on irrigation schemes to allow farmers in emerging markets to increase their agricultural productive capacities. The company should also build schools and hospitals among other projects in emerging markets as part of their CSR initiatives. These charitable activities among others will help Tata to capture and sustain large consumer bases in the emerging markets. For instance, through its affiliate company Miljo Grenland, the company is currently producing electric cars called Indica that are environmentally friendly. These production of these eco-friendly cars should also be extended in the emerging markets to further plummet the companys position in international operations. This question aim at determining some of the actions that Tata should undertake to minimize the impact of its operations on nature in Asia and in other parts of the world. According to Kolk and Van Tulder (2010), a comprehensive CSR can significantly improve the effectiveness of an organization especially when dealing with external conflicts such as environmental protection. Some of the common CSR initiatives that Tata can apply include improving it organizational operations and creating self-protection awareness among its consumer bases (McWilliams and Siegel, 2011). Specifically, from the case study, to minimize the possible impact of Tatas operations on the natural environment in Asia and in other parts of the world, the company should consider applying various eco-friendly energy such as a reduction in the use of wood-burning stove by introducing solar lanterns. The company should also introduce more low-cost solar-powered electronics such as refrigerators and water pumps to further minimize the impacts of its operation on the natural environment. Overall, such initiatives will enable Tata to reduce its carbon dioxide emissions and operate in a relatively clean environment. References Alfaro, L. and Chen, M. X. (2014) The global agglomeration of multinational firms, Journal of International Economics, 94(2), 263-276. Buckley, P. J. and Ghauri, P. N. (2004) Globalisation, economic geography and the strategy of multinational enterprises, Journal of International Business Studies, 35(2), 81-98. Dunning, J. H. and Lundan, S. M. (2008) Multinational enterprises and the global economy. Edward Elgar Publishing. Goldstein, A. (2009) Multinational companies from emerging economies composition, conceptualization direction in the global economy, Indian Journal of Industrial Relations, 137-147. Goldstein, A. (2009). Multinational companies from emerging economies composition, conceptualization direction in the global economy. Indian Journal of Industrial Relations, 137-147. Keller, W. and Yeaple, S. R. (2009) Multinational enterprises, international trade, and productivity growth: firm-level evidence from the United States, The Review of Economics and Statistics, 91(4), 821-831. Kim, H., Hoskisson, R. E. and Lee, S. H. (2015). Why strategic factor markets matter:New multinationals' geographic diversification and firm profitability, Strategic Management Journal, 36(4), 518-536. Kolk, A. and Van Tulder, R. (2010) International business, corporate social responsibility and sustainable development, International business review,19(2), pp.119-125. Madhok, A. and Keyhani, M. (2012). Acquisitions as entrepreneurship: asymmetries, opportunities, and the internationalization of multinationals from emerging economies, Global Strategy Journal, 2(1), 26-40. McWilliams, A. and Siegel, D.S. (2011) Creating and capturing value: Strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage, Journal of Management,37(5), pp.1480-1495. Shrader, R.C. (2011) Collaboration and Performance in Foreign Markets: The Case of Young High-Technology Manufacturing Firms, Academy of Management Journal 44(1): 45-60. Slack, K. (2012) Mission impossible?: Adopting a CSR-based business model for extractive industries in developing countries, Resources Policy,37(2), pp.179-184.

Islamic Banking Essays - Credit, Islamic Banking And Finance

Islamic Banking INTRODUCTION The basic concept of Islamic banking which is also known as 'interest-free banking' is based on basic ethical standards with just one main difference- Muslims are not allowed to pay or receive interest. This does not mean that business activities or making a profit are not encouraged, they are but as long as they dont involve interest in any form. To fulfil this purpose, financial instruments have been introduced by the Islamic financial institutions to satisfy these requirements. An example that can be seen is that equity financing is used instead of debt financing. Furthermore, instead of giving a fixed interest rate on the savings account, Islamic banks offer a share of the bank's profit, as a return on deposits and this is around 5% annually. HISTORY The modern banking system was introduced into the Muslim countries in the late 19th century when most of these countries were performing that well economically as well as politically. These banks founded branches in the capital cities of major Muslim countries to cater their business needs. However, the branches were limited to the capital cities and the other surrounding cities were totally ignored by the banking system. Nevertheless, most local businesses still refrained from engaging with these commercial banks, mainly for religious reasons. The reason behind this is that banks operate on the basis of charging interest, a concept totally forbidden by Islam. As time went by however, it became challenging to avoid commercial banks. They were more efficient in certain banking aspects such as money transfers and current accounts, but borrowing loans and opening saving deposits were still avoided due to the prohibited interest issue. As the second half of the 20th century has witnessed, any business-related transaction almost always involves a bank and hence, avoiding the modern banking system has become virtually impossible. Banks extended into local communities and thus, forced themselves into almost every kind of business and their related transactions. This is when many Muslim intellectuals recognized the need for an Islamic banking system that will serve the needs of Muslims from the business point of view and at the same time respecting the codes of Islam. Islamic banking as an institution has been around for 25 years but interest-free banks have also been tried before. There was one such bank in Malaysia in the mid-forties and one in Pakistan in the late fifties. Neither of them survived. The early seventies saw the institutional involvement. The Islamic Development Bank, an inter-governmental bank was established in 1975. The first private interest-free bank, the Dubai Islamic Bank was also setup in 1975 by a group of businessmen from several countries. Two more private banks were founded in 1977 under the name of Faisal Islamic Bank in Egypt and Sudan. Twenty-five years since the establishment of the first Islamic bank, more than 150 Islamic institutions have come into existence. Though most of these are in Muslim countries, there are some in Western Europe as well as in North America and Asia. PRINCIPLES OF ISLAMIC BANKING The Islamic banking system follows certain, yet simple, rules set by the Quran and the Shariah (Islamic law), which if deviated from the system becomes un-Islamic. These are summarized as follows: 1. Any predetermined payment or benefit over and above the actual amount of principal is prohibited: Islam allows only the type of loan in which interest of any form is not charged. Interest in this case is in either monetary form or other beneficiary forms such as using the borrowers property, etc. in return for the lent money. In other words, any type of benefit received by the lender from the borrower in return for lending the money is prohibited. This is different however from the concept of profit-sharing which will be explained next. This is different from the typical loan types of commercial banks which impose interest on loans in some form or the other. 2. The lender must share in the profits or losses arising out of the enterprise for which the money was lent: One of the basic concepts of Islamic banking is to share profits as well as losses. In this way, the lender and borrower become partners rather than creditor and debtor. The incentive behind this is to make both parties

Fashion Personal Statement †Write an Appealing One Essays

Fashion Personal Statement – Write an Appealing One Essays Fashion Personal Statement – Write an Appealing One Essay Fashion Personal Statement – Write an Appealing One Essay The glamor and appeal of the fashion industry is gaining popularity day by day which is why majority of youths these days dream of becoming a prominent part of this industry. Fashion is practiced in almost every culture that is the reason that each one of us is well-familiar with different trends. The most common degrees in the field of fashion are fashion marketing, merchandising and designing. Majority of the youths go for fashion designing since it offers both glamour and fame. In this industry, employers look for those individuals who have at least four years degree in this field. They give chance to only those people who prove their competency through their work experience and potential. Nonetheless, to gain admission in a fashion designing college for a four years degree program you first need to write a fashion personal statement. This particular statement basically contains three to four descriptive paragraphs that discuss anything details related to you, your field, interest and goals. Sometimes such applications are options while other times they are compulsory. Take your time and read the prompt of the fashion design college carefully. : Follow the below listed tips to write a stellar fashion personal statement that will guarantee your admission in the college you long for. It is observed that majority of students include a long list of achievements and accomplishments in their personal statement which leave less room for discussing their motivation, interest and other necessary details. Remember that if you focus your statement to only your accomplishments it won’t make the statement stellar. Other than talking about accomplishments, you should also discuss your reasons for seeking a degree in fashion designing. The statement is also a great place to talk about your poor academic performance or lack of good grades. Do not hesitate to talk about poor grades as long as you can provide them a good reason. It is suggested that students should discuss such details as these details can clear their misunderstanding. Give them the reason why your mark sheet carries poor grades and what caused it. Sometimes it is tempting to stretch some details in the personal statement. However, to keep the interesting factor intact, it is important to make your speech short and to the point. Before writing the statement, it is suggested that one should make a list of necessary elements that are integral for the statement. Keep the description of each element brief and precise. As with all sorts of manuscripts, it is necessary that one should also proofread and edit the personal statement. Keep in mind that a sloppy and erroneous statement never makes it to the end. So, proofread the statement to increase the chances of your admission.

Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire

England, England, a sardonic novel by Julian Barnes, explores the dichotomy of man’s satisfaction with reproductions of authentic experiences. The story draws from the twisted ideas of the enigmatic Sir Jack Pitman, a well-known London entrepreneur who wishes to build a theme park on the Isle of Wight based on stereotypes and clichà ©s associated with England. His company purchases the island and creates an independent country where participants can visit and even live in a manufactured culture and history based on common preconceptions. Pitman rules the new nation as virtual dictator and hires actors posing as English people to inhabit the park. The protagonist Martha Cochrane, who suffers under Pitman’s yoke of influence as a â€Å"Special Consultant† (Barnes 45), eventually intervenes and takes control of â€Å"England, England† when she feels Jack has overstepped his authority. The author’s underlying philosophy is that humans prefer an ide alistic representation of the truth to the truth itself. Barnes employs two- sided characters and a counterfeit England to develop his theme that the world is an illusion. The private behaviors of Sir Jack Pitman’s character vastly deviate from the commanding personality he projects to his employees. To the public eye, the president of PitCo comes across as a ruthless, strict, and matter-of-fact businessman. Barnes characterizes him as having a bored and condescending tone with his coworkers. Indeed, when his subordinate Mark asks him how he intends to go about solving the problem of birthing a small sovereign nation from scratch, the stern Pitman only responds, â€Å"you do it by doing it† (128). A man with an obvious sense of innate encouragement, Pitman believes that the two means of achieving a goal are his way or the highway. One of his traits, however, stands out from the rest. An interesting quirk in the man’s character concerns his affection and loyal, scheduled sessions... Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire Free Essays on The Nature Of Appearance’s Relationship With Reality In Modern English Satire England, England, a sardonic novel by Julian Barnes, explores the dichotomy of man’s satisfaction with reproductions of authentic experiences. The story draws from the twisted ideas of the enigmatic Sir Jack Pitman, a well-known London entrepreneur who wishes to build a theme park on the Isle of Wight based on stereotypes and clichà ©s associated with England. His company purchases the island and creates an independent country where participants can visit and even live in a manufactured culture and history based on common preconceptions. Pitman rules the new nation as virtual dictator and hires actors posing as English people to inhabit the park. The protagonist Martha Cochrane, who suffers under Pitman’s yoke of influence as a â€Å"Special Consultant† (Barnes 45), eventually intervenes and takes control of â€Å"England, England† when she feels Jack has overstepped his authority. The author’s underlying philosophy is that humans prefer an ide alistic representation of the truth to the truth itself. Barnes employs two- sided characters and a counterfeit England to develop his theme that the world is an illusion. The private behaviors of Sir Jack Pitman’s character vastly deviate from the commanding personality he projects to his employees. To the public eye, the president of PitCo comes across as a ruthless, strict, and matter-of-fact businessman. Barnes characterizes him as having a bored and condescending tone with his coworkers. Indeed, when his subordinate Mark asks him how he intends to go about solving the problem of birthing a small sovereign nation from scratch, the stern Pitman only responds, â€Å"you do it by doing it† (128). A man with an obvious sense of innate encouragement, Pitman believes that the two means of achieving a goal are his way or the highway. One of his traits, however, stands out from the rest. An interesting quirk in the man’s character concerns his affection and loyal, scheduled sessions...

Final Essay Example | Topics and Well Written Essays - 750 words - 21

Final - Essay Example Natural occurrences involve phenomena that humans cannot control and the outcome is observed by a large majority of the audience. For example, it is observed that the US is a developed nations that comprises of both crime-free individuals as well as criminal elements. In order for authors to convince their audiences that their perspectives and arguments are valid, historical accounts as well as observed outcomes must be accounted for to show authenticity of the argument. Within the US social context, it is shown that some members of the society have experienced alien activity. However, whether the spotting of UFOS of glowing lights in the horizon account for alien activity, the arguments on these phenomena are not convincing as not a majority of society members are familiar with the activities. In this case, authors and speakers have to consider timeframe, number of observed accounts, reference to the phenomena, and how much the audience can relate to matters at hand. When considering videos watched in class under the TED talks of various public speakers, it is an observed trend that they present their arguments by offering three types of accounting strategies. Firstly, these speakers ensure that the audiences they address are familiar with the considered issues. In this case, a speaker introduces a point and backs it with facts that the audience can point at. Secondly, while a perspective may be valid, logical considerations do not offer as much convincing power as the use of present and historical account and result of the agenda topic. For instance, when considering James Hansen’s TED talk (1-17 minutes) about why he must speak about climate change, it is shown that the speaker considers climate change a largely observed phenomenon and describes that a former professor of his introduced the solar radiation concept to him. The historical accounting in this case shows that the speaker uses solar radiation as a variable that has been associated with

Religion; Islam Essay Example | Topics and Well Written Essays - 750 words

Religion; Islam - Essay Example The above paragraph may show a perspective that the Sufi would not agree to. Because, if the Sufi spiritual quest has to be considered rightful it should have been given in the Quran and/or the sunnah of Prophet Mohammad. Andrew Rippin, in his work Muslims: Their Religious Beliefs and Practices, states that To defend Sufism several Muslims say that it was only a respond to the increasing materialism in the Islamic world. However, this argument does not answer the question. In fact it evades it. As even in early Islamic times and under the Prophet Mohammad’s leadership there was materialism and people enjoyed it. The legal nature of the Islamic system has never addressed the issue of materialism and so it was called insufficient by the people who became Sufis during their search for spirituality. This, Islam was called a religion of unspiritual nature. â€Å"considerable ink has been spent by modern scholarship on the ‘origins’ of Sufism in Islam, as to how far it is ‘genuinely’ Islamic and how far a product, in the face of Islam, of outside influences, particularly Christian and Gnostic.†2 Seyyed Hossein Nasr is a Muslim scholar, who in his work Sufi Essays, has shown his contempt of Islamic scholars of the West who are following the older system of detailing Sufism as some type of strange effect within Islam, and celebrates with the reality that â€Å"many are now willing to accept the Islamic origin of Sufism and the unbreakable link connecting Sufism to Islam.†3 While these are responses to the questions originally posed, they appear to be more worried with the preservation of the external manifestation of Islamic unity, than with significant academic research and assessment. Plenty of traditions about the life of Prophet Mohammad that the Sufis relate are not to be seen in the major hadith collections (Bukhari, Muslim, Kulayni, Ibn Babuya), and thus they are rejected. Nevertheless, within Sufi spheres the customs are preserved - and considered by

Global Context of Modern Business Essay Example for Free

Global Context of Modern Business Essay China is believed to have the oldest continuous civilisation. China has over 4,000 years of provable history. Beijing is the capital of China and is the most important point for the country. The official language is standard Chinese, which is derived from the Mandarin language however most business people speak English. There are many dialects in China however there is only one written language. A communist form of government rules China. The Chinese government promotes atheism although the constitution guarantees freedom of religion. The Chinese practice a variety of religions however Confucianism; despite not being a formal religion is practiced widely throughout the country. China is the most densely populated county in the world with approximately 1. 3 billion people as of mid- 2008. Almost 100 percent of the population are ethnic or Han Chinese. There are strict rules regarding childbirth and each couple is limited to only one child. Opportunities There are lot of trade and investment opportunities for exporters in the China market. Some of the major sectors currently experiencing rapid growth are: processed food and beverages, gambling, transport, IT and telecommunications, minerals and energy, environment protection, building construction products and services. Three of the major growth industries though are the exporting of education, processed food and wine products. Education The foreign education sector in China is split in two students studying abroad and foreign education service providers establishing a presence in Shanghai. The type of students interested in Australia includes those who desire pure language study and those who wish to study university degrees right through to post-graduate/MBA studies etc. As the cost of overseas study remains high, pursuing qualifications through foreign accredited institutions in China has become more practical and more popular. Course delivery can take two forms. One is the foreign school catering exclusively to expatriates, which can be wholly foreign owned and the investor need not be an education entity. The other is a co-operative arrangement or twinning with a Chinese institution where local students are the target markets. These schools are encouraged to provide vocational education. Foreign investors must have a Chinese partner who can lodge an application with the local education authorities for approval. Processed Food As Chinese become more prosperous, demand for more sophisticated products, with a greater emphasis on quality, convenience and freshness continues to grow. This means that significant unsatisfied demand for richly processed foods exists. There has always been a stable market for imported foods in China, especially in respect to hotels, bars and western style restaurants. Increasingly, Chinese consumers themselves are becoming to lay great stress on brand and brand loyalty than before. This means that companies with a strong international brand and aggressive marketing strategies continue to hold large market shares. Foreign companies that have been given permission by the Chinese government to set up supermarket chains include Yaohan, Wellcome, Parkson, Park N Shop, Careful, Pricemart and CHC. These companies are setting up supermarkets in a limited number of locations. Wine Wine is especially popular in the large cities of China (Beijing, Shanghai and Guangzhou) and has great potential given the increasing disposable income of local people, the health benefits of drinking wine and the government campaign against grain-based alcoholic drinks. However, many Chinese have little knowledge of table wine, and few people can differentiate quality and appreciate the taste. With this in mind, and excellent promotional tool could be wine appreciation and information courses to educate food and beverage managers, restaurant owners and waiters. This would also attract high-income earners and may ultimately stimulate the consumption of quality wine. The Chinese wine market is price sensitive and consequently locally manufactured wine holds the largest market share. French companies are active in setting up joint venture either growing grapes and manufacturing wine or bottling bulk-imported wine. Better quality wine is limited to hotels and restaurants and consumed mostly by Western diners. To successfully sell wine in China, local bottling of bulk-imported wine is considered the most economical and practical way to supply the local market with a competitively priced product. The opportunities arise from rapid economic growth in the worlds largest market and the availability of a cheap manufacturing base from which to sell to China and the world. From a manufacturing perspective, China in the long run will be distinguished by its overall business strength and structure, including the huge investments made to ensure China has a modern competitive manufacturing sector. All businesses need to be clear about whether they want to sell or manufacture in China. Long-term, China business strategies should not be based on the availability of cheap labour this is disappearing as China becomes wealthier. The number of high net-worth individuals on the Chinese mainland has hit a record high and they are continuing to spend, according to the Hurun 2009 Wealth Report. The study found 825,000 mainland Chinese – or one in 1,700 – with a personal wealth of at least US$1 million. And now the rich are more likely to be found in second- and third-tier mainland cities. A new generation of consumers is emerging in China they are young, well educated and familiar with non-Chinese cultures. This Y generation of 240 million, born between 1980 and 1990, is now the highest earning age group in the country and is looking for a new way of life. They typically live in the major cities on the Eastern seaboard of China and in particular in Beijing, Shanghai, Shenzhen and Guangzhou where GDP per person is now over US$5,000 but corresponds in Purchasing Power Parity terms to four times that amount. Challenges Starting to do business in China is likely to be more costly and time consuming than in other markets. Challenges arise because of Chinas size, its gold rush style growth and the fact China has a very different business culture and environment from what businesses in other countries are used to. China is different in size, culture, politics, geography, history and economic structure. These issues can present challenges for companies looking to sell or invest in China which can only be overcome by thorough research, spending a lot of time in-market and following a focused business plan. Language and culture barriers The main challenges of doing business in China would be language and culture barriers. Before you visit China, it will be a definitely good idea to prepare yourself by studying aspects of Chinese language, culture, history, and geography. Your hosts will appreciate your initiative. If you speak Chinese, they will really appreciate your efforts and take your initiative of doing business in China more seriously than if you do not speak any of their language. Moreover, your ability of being able to understand Chinese language will help you to establish a successful business. It is essential for the foreign-funded enterprises to understand the China’s culture, especially regarding the culture of Guangxi (relationship), so as to be able to gain the popularity and trust of China population. With a good relationship, business can become smoother and probability of failure will be greatly reduced. Stronger bonds can also be built with the customers, suppliers and partners. In China, Guangxi is a complicated field. A special feature of doing business in China will be that Guangxi will have to include relationship with the government body, investors, partners and even relationship with your own staff, so when doing business in China, it is important for foreign investors to learn to coordinate with the China government, especially establishing good relationship with government bodies dealing with foreign trade and economic cooperation. Government procedures Governmental procedures for foreign investors in establishing investments in China is extremely complicated, thus if one is unfamiliar of the procedures, one will delay his business opportunities. Therefore it is important for one to be familiar with the investment procedures before carrying out his investment in China. A safer and more appropriate way will be to seek help from local organisations familiar in the same field of business or consultant firms who are able to provide professional advice and assistance. Determination and patience may be essential for an investor to be successful, however it is necessary for one to require help from professional bodies to ensure that success will be achieved. Conclusion China’s labour market very much appeals to many foreign investors. This is because on one hand, labour cost is low, and on the other hand China’s workforce has become matured and their skills have been constantly upgraded, especially in the coastal cities. Educational development is undergoing at a wonderful pace in China, thus it is no longer difficult to hire high quality labour force in China today. Many successful foreign investors have even credited their success in China to their China’s local staff. One big problem that is causing headache to foreign investors is how to maintain good relationship (Guangxi) with the local staff. First of all, top management should cultivate the company’s vision and values into the employees because what the local people are taught under China’s educational system may crash with the foreign management system. Thus only by letting the employees understand the company better can allow the company to function better.