Looking out of his office window, Mr E.j. Broekers, general manager of Shanghai Honggc Advanced Instrument Co., Ltd. (SHAIC),' a Sino-Gemian joint venture (JV) in the Minh. Economic and Technological Development Zone (ETDZ) of Shanghai, noticed the I smokestacks of the main Shanghai electric power station. His eyes followed the large clouds smoke that shot out of the smokestacks into the hot summer air. Despite continued growtl revenue and profits, some clouds have appeared on SHAIC's horizon as well', he thought himself.
SHAIC was established in 1986 as an equity jV between the Shanghai-based Hongg Instrument Works (HIW) with 60% equity and the German company Knger with 40% eq Since its establishment, the jV had developed a profitable business in China. Se] electromagnetic or magnetic inductive fiowmeters of various sizes, turnover in 1994 had read 48 million2 (including VAT) with a 17% net profit. But market development had bee rollercoaster. Since 1993, orders had come increasingly from the southern part of C (primarily Guangdong Province) and from sectors other than steel which had represented bulk of business in the early years. With this shift, the role of the Ministry of Nuclear En (MNE) (to which HIW belonged administratively) in opening up markets had waned. As opportunities found themselves outside of the ministerial sphere of MNE, Broekers felt that Chinese partner would face increasing difficulty in executing its sales and marke responsibilities. A more aggressive market development approach was needed.
However, due to (a) lack of liquidity in the economy because of the central government's tight monetary policy since August 1993, (b) complex differences in the industrial ministries to which clients reported (particularly the extent of central control and information exchange), and (c) the general lack of experience with electromagnetic flowmeters among potential Chinese customers, questions arose on where to focus next Broekers specifically wondered how to access and develop virgin application areas, how to secure an efficient entry, and how to pre-empt foreign competitors who were in the process of getting their own jV operations off the ground. With 60% of the installed flowmeters being from SHAIC, Broekers also questioned how to maintain the motivation among the Chinese employees. The enthusiasm and aggressiveness they had shown dunng the initial years of the JV would have to be maintained, if not increased, to successfully tackle the new market opportunities.
Marketing Electromagnetic Flowmeters in China : Investment article from Business Management Catagory Marketing Electromagnetic Flowmeters in China
Marketing Electromagnetic Flowmeters in China Investment article from Investment Business Management.Free learning from data about Marketing Electromagnetic Flowmeters in China Investment Business Management Business Management,online business management,business management classes,online business management degrees