The Strategic Issues Entering Into European Markets Commerce Essay

The proposed direction study is focused on the strategic issues of the company come ining into European market. The company is seeking to do entry in an international market in order to do the merchandise development. The company is seeking to capture the planetary market for the enlargement of the merchandise and is hence advised to do an entry in the United Kingdom in order to do the thorough position research on the merchandise development. For guaranting the stableness of the transverse cultural concern enterprise, preparation is imperative and should be given to all employees in the concern administration. Employee cognition about the international values, beliefs, tendencies, developing & A ; development, linguistic communication and imposts is necessary to fit the tendencies in United Kingdom & A ; do optimal use of the international exposure towards the merchandise development every bit good as the market development. Corporate scheme of the concern is to be formed in conformity with the functional construction of an administration to keep an effectual channel of the concern activity in an international market. From this point of view, all the of import & A ; needed strategic issues of the concern are focused in this study. The company is suggested to take their entry in the European market for the enlargement & A ; development of their merchandise, every bit good as, market. In this activity, whatever necessities are required to carry through in footings of organizational construction & A ; control strategies in the concern are pre-screened in a simple & amp ; rational manner helpful to the concern direction & A ; control.


Jiangsu Jiuchuan Clay Technology Development Co.Ltd. is located in Xuyi state Jiangsu Province which is known as the capital of attapulgite clay. It was established by Shu Guang proprietary group along with its strategic investing spouses. They have invested 50 million Yuan covering about 33 acre in China Attapulgite Clay scientific discipline & A ; engineering zone and is the biggest high tech endeavor covering research & A ; development, production, application & A ; gross revenues of stick crystalline inorganic Nano stuffs and Nano attapulgite. The company is holding the capacity to bring forth 30,000 metric tons attapulgite & amp ; 10,000 metric tons nano composite plastics. Their advanced nano stuffs have been applied in the top merchandises in the field of crude oil, gum elastic, chemical, pharmaceutics and environmental protection. The company has reached the taking degree in the universe about GE technology plastics. At present the company have constructed a long clip close co-operation with the Chinese Academy of Sciences, East China University of Science & A ; Technology and Huaiyin Institute of Technology. With the proficient support of these establishments, the company has established the first attapulgite engineering clay trial Centre, Jiangsu key lab for the use of attapulgite clay resources & A ; the attapulgite clay research & A ; development associated lab. The merchandises of the company are Nano Attapulgite, Nano Polymer nucleating, Nano composite plastic, Nano foil, Nano organic stuffs, Nano composites, Super nano inorganic high viscousness and the three dimensional web of adsorbent act ; therefore assisting to carve a route of application of immaterial ‘s. Recently, the company has a scheme to come in into the European market for the intent of developing its capablenesss in the Research & A ; Development and the merchandise development ; they have aspiration to go a engineering leader in the industry. The imperative program of the company is to utilize the technological cognition, gained from investings in Europe, to develop merchandises & A ; the production processes in the place base. With the aid of that they can spread out their merchandises to Europe and the USA.

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Advice on the choice of the state

The strategic focal point of the company is on the research & A ; development activity of the merchandise. The company is eager to convey an advanced merchandise to the market in order to capture the section market orientation. In order to hold a strategic way, it is advisable to the company to do its development in the United Kingdom. The Penrosean attack of bio-technology is applied in the UK in order to research the interplay of internal & A ; external kineticss in the development of the new concerns. The really concreteness of bio-tech ventures facilitates the common development procedures in all of the new concerns in UK ; these types of concerns are making outstanding values, which are pulling investors perceptually on a longer term footing than in the other sectors.

Recently in Russia, universe ‘s largest nanotechnology support programme was approved with $ 3.95 billion set aside until 2015. In Europe, Germany leads the nanotechnology programme as the Government has endorsed nanotechnology since 1980s. Germany is besides ranked among the top 4 locations worldwide for nanotechnology and is besides place to planetary participants in nanotechnology such as Bayer, Siemens, Evonik and Carl Zeiss. Table twenty below shows that Japan is a universe leader in per capita support on nanotechnology while in Europe, Germany leads the battalion.


Support degrees per capita

( in one million millions )

United kingdom

$ 3.43 B


$ 10.92 B


$ 9.71 B


$ 11.65 B


$ 10.01 B

UK authorities has besides spent about ?600 million in the last 10 old ages to back up research in nanotechnology. The entire support has easy exceeded ?1 billion grade if the investings by UK authorities are coupled with corporate support based on 50:50 standards. In the UK, there are over 600 micro and nanotechnology companies each developing commercial applications from nanotechnologies ( Beginning: NanoKTN, 2009 ) . Major houses runing in nanotechnology in UK include Oxonica, Elan, Hitachi and Nanoco.


Estimated Amount ( in million )























Estimated UK Government support for nanotechnology

Historically, research in UK has been successful and is besides considered as a taking human dynamo of invention & A ; commercialization. The repute of UK in nanotechnology research is underpinned by a strong faculty member sector where legion research scientists are concentrating on the development of nanotechnology. Semiconductor industry in UK is runing within nanoscale for many old ages while the accelerator industry has shown disposition towards nanoscaled constructions as the addition in surface country provided by nanoscale is giving rise to increased activity. Increased surface country and alterations in the optical, magnetic & A ; electrical belongingss are the fresh belongingss exhibited by nanoscaled constructions. These atoms are going growingly understood, therefore enabling the development of nanoscale characteristics to better the scope of bing merchandises & A ; possible to add new merchandises in the market over a broad scope of sectors. The Technology Strategy Board in the UK are linking and catalyzing their reactive & A ; proactive attack in footings of the cognition direction [ Parek, 2010, p16 ] . Volume of the work has been in distributing cognition, understanding policy, descrying chances and conveying people to work out jobs while doing progresss in the engineering developments. UK authorities initiated a nanotechnology programme of work in the twelvemonth 1986 ; a national enterprise on nanotechnology which was led by the national physical research lab in UK and was subsequently followed by another nano engineering programme in the old ages 1988 to 1996 and 1998 to 2006. The last nano engineering programme has been conducted in the twelvemonth 2009 when the former Department of Trade & A ; Industry has led to analyze the possible impact of nano engineering & A ; nano scientific discipline on industry in UK [ Zambia, 2010, p39 ] . There are assorted cardinal obstructions to the successful development of the nanotechnology ; nevertheless, an sole research study is available to get the better of these obstructions which identify figure of different chances in relation to nano scientific discipline & A ; nano engineering industry. Assorted paperss are published by the UK universities and research labs as per the British criterions on the nanotechnology nomenclature to turn to & amp ; steer in covering with the wellness & A ; safety issues which arises due to the usage of nanotechnology. As UK has a cardinal strategic partnership with China compared to other European states and really strong ties exists on both sides at all degrees of the authorities and broad scope of stakeholders, puting up concern by Jiangsu Jiuchuan in UK is more appropriate even when UK compared to Germany is at 2nd topographic point in the technological leading in nanotechnology. It is certain that an extended concern support web and important market will excite more growing of nanotechnology development in future in UK with the continued support of the authorities.

Advice on the covering with institutional & A ; cultural differences

Harmonizing to the World Bank study, CEO ‘s of more than 85 % companies that failed to tag a success in their concern venture outside China attributed troubles in pull offing differences in managerial manners, corporate civilization and mentalities. In UK, there are a figure of people from different states with different faith, beliefs, civilization and attitudes. The company has to esteem the cultural diversenesss and develop a tolerant manner of incorporating the new minorities. Training and instruction is must for employees to assist them better manage and understand multiculturalism at work. Culture differs from one society to another ; there is a authoritative differentiation between active & A ; inactive societies. Active societies are seeking chances in their environment in order to better their conditions with exposing the desire for attainment and to be in charge. Passive societies are seeking to keep their position and expose a inclination to be under the control of natural procedures of the societal moving ridges & A ; developments [ Etzioni,1968, p72 ] .

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Above graph is based on good known Hofstede model of measuring cultural dimensions and compares the civilizations of China and UK. Although his work was criticized for presuming each state has a unvarying civilization, it is still considered as a utile tool to the companies willing to set up on the foreign land. Figure xx clearly depicts huge differences in the civilization of two states ; hence, dialogues between British & A ; Chinese houses could ensue in possible cultural misinterpretations and it is recommended that careful and expressed attending must be paid to the cultural factors before come ining into such dialogues.

There is really small to pick out on “ maleness ” and “ uncertainness turning away ” between the two states but all the other three dimensions have significant differences. On Power Distance, China has a high mark stand foring being of inequalities of power and wealth compared to UK where there is more societal equality. A big power distance civilization as followed in most Chinese houses is hierarchal, autocratic and ruling ; while smaller power distance civilizations demonstrate level administration, value engagement and more democratic. Jiangsu Jiuchuan should pay careful attending to the organizational hierarchy. Individuality represents the grade to which a civilization reinforces person ‘s importance compared to a group and it is no surprise that UK scores high on this value. It has been discovered that with an addition in the national wealth, a civilization moves in the way of individualism terminal of the spectrum. China ‘s civilization is viewed as collectivized civilization on this spectrum. Jiangsu Jiuchuan negotiants should appreciate people in United Kingdom are sensitive to individuality and cultivate a civilization to back up this feeling. Masculinity high spots grade of gender distinction, i.e. the traditional function of males vs. females. Masculine civilizations are besides considered as civilizations which value fight, assertiveness and wealth accretion compared to feminine civilization which values relationship & A ; quality of life. Both China and United Kingdom are at the same degree on maleness. Both states besides score about equal on “ Uncertainty Avoidance ” which deals the tolerance degree for uncertainness and ambiguity within a civilization. However, one dimension that stands out where there is a immense difference in the tonss is “ long term orientation ” dimension. Literally, this suggests that Chinese houses enter partnership with a farsighted vision & A ; emphasise long term ends, whereas British houses looks frontward to hold short term pay-offs. This displays the function of guanxi in concern relationships between Chinese and British houses. Of the several Chinese cultural constructs that have been investigated for their significance in concern relationships – mianzi ( ‘face ‘ ) , renqing ( reciprocality ) , xinyong ( trust ) and guanxi ( personal connexions ) – it is guanxi that is likely the facet of Chinese civilization that is best known to Westerners ( Wilson, 2005 ) .


Figure xx above comparisons and highlight more cultural dimensions between UK and China. For the intent of the study, dimensions on the above figure are non discussed in item as analysis based on Hofstede model is already studied in the old subdivision.

Advice on the organizational construction & A ; the control schemes

Administration construction is a hierarchal construct of the subordination of entities that collaborate and contribute to function a common purpose. Administration is a group of the clustered entities which can be structured in many different ways & A ; manners depending on the aims and the available potencies. In the past administration constructions were considered as least of import and formed harmonizing to the concern proprietor ‘s mind but recent researches have shown that wrong organizational construction can hold detrimental effects on company ‘s strategic way and may even take to failure in run intoing the concern aims. Organisation constructions will find how the public presentation is traveling to be made & As ; how the operational activities are to be managed. Organisational construction & A ; commanding schemes in concern can be planned in relation to accomplish the aims of concern. Object oriented methodological analysis is required in planning of construction of the administration & A ; the concatenation of order. Jay Galbraith is his book “ Planing the Global Corporation ” justly said: “ Today, it is difficult to happen a company that does non claim to be planetary ; it is every bit difficult to happen a company that has mastered the ability to form and make concern globally. ” As the premier aim of company Jiangsu Jiuchuan is to go technological leader in the industry by deriving cognition from the investings in research and development alternatively of positioning European subordinate as a major export hub, international division or worldwide country organizational construction will non accommodate Jiangsu Jiuchuan. International division attack is suited to those companies which have a standardized merchandise and purpose for geographical enlargement in assorted states. Although, there will be duplicate of attempts in assorted functional section in order to command international subordinate but the experience of the parent company would be helpful in successfully set uping the concern unit. However, as R & A ; D and merchandise developments are the countries where Jiangsu Jiuchuan needs European expertness, world-wide merchandise country construction is seen as a better tantrum compared to all other organizational construction. This would let company to concentrate on the part as a dedicated R & A ; D Centre. All other functional sections such as finance, fabrication, gross revenues and personal will be centrally controlled from the place state, China. All the maps of the concern will be under the control of Chief Executive Officer while maps in an country of concern activity are departmentalised & A ; the departmental director will hold the authorization & A ; duty to manage the section activities. Company should decentralize determination devising to its UK subordinate while guaranting appropriate way and control is in topographic point to accomplish consistence with the overall corporate scheme. It makes it suited for the administration to carry through its ends in clip. Control systems are the necessary administration tools in the custodies of senior direction to determine single sub-units are executing good irrespective of the type of organizational construction. Based on the aims of UK subordinate, it is recommended to Jiangsu Jiuchuan to hold “ end product control system ” which consists of puting disputing ends, ambitious public presentation criterions & A ; appropriate operating budget for the concern unit to carry through. Care must be taken while puting the control systems as they should n’t be excessively rough and should actuate the employees to work towards achieving corporate aims and maintaining the administration on path. Regular reappraisals should be held to follow up on the promotions inside and outside of the administration ; and if conditions change, it is appropriate to revise the aims and communicate. It is advisable to the company to utilize the administration construction in the concern under the control of the Chief Executive Officer of the company which maintains the centralization of direction in the concern with decentralization of the maps for creativeness of merchandise. The company deserves an optimal degree of proficiency in concern with the spirit of improved merchandise mechanism & A ; the concern research.

General Issues

A salient and much controversial international issue of engineering transportation is of the proprietary nature. Latest engineerings are peculiarly concentrated in comparatively few companies in a few industrial states and MNC ‘s have found to be the primary vehicle of engineering transportation from the developed states to developing states. During the past few decennaries much of the engineering transportation has been done by the multinational corporations. Recent surveies have shown that MNC ‘s are normally more protective of their progress cognition, engineering & A ; competences embodied in procedures, merchandises & A ; direction. This is due to the fact these strategic resources & A ; competences of the MNC are the chief beginnings of its competitory advantage. While recognizing that engineerings, cognition, and competences are the provider ‘s chief beginning of competitory advantage, the current engineering transportation issue in international joint ventures or subordinates revolves around the extent of grade of engineerings that are transferred by the providers to recipient spouses in footings of tacit cognition ( new product/service development, managerial systems and pattern, procedure designs and new selling expertness ) , and expressed cognition ( manufacturing/service techniques/skills, publicity techniques/skills, distribution know-how, and buying know-how ) ( Madanmohan et al. , 2004 ) . Surveies have suggested that corporate acquisition promote confederation spouses to portion their cognition and benefit from each other ‘s complementarities thereby supplying common chances and possible synergisms which can be extracted by the several competences. Collaborative larning creates an entree to the spouse ‘s cognition and accomplishments such as merchandise and procedure engineering, organisational accomplishments, and knowledge about new environments ( Inkpen, 1995a ) . In the collaborative acquisition environment ; the transferring spouse is normally more unfastened & A ; transparent with regard to sharing & A ; reassigning cognition to the receiver spouse as it demands common exchange of valuable cognition. Benefit of the engineering promotion can be acquired with the sole use of cyberspace for the intent of an effectual information direction in development of the merchandise through planetary research. National cultural differences largely reside in values and less in pattern, as the importance of the engineering transportation is different in the different fortunes. It is required by houses & A ; companies in the globalization period of concern & A ; commercialism to join forces across civilizations for effectual engineering direction. The country that is holding the light attending in literature is cross-cultural preparation of the workers which is indispensable to gain the advantage of engineering sharing and convey success to the subordinates of multinational corporations. Jiangsu Jiuchuan has an chance to spread out concern in UK and do usage of Research & A ; Development of the international degree in development of merchandise for administration ‘s concern activity. Internet & A ; Groupware engineerings are the combinations of hardware web architecture and package applications that enable persons & A ; groups to pass on, portion information & A ; collaborate by bring forthing the joint merchandises. States that are puting immense amount of money in R & A ; D and giving subordinates to the international companies interested in set uping concern in UK in the field of nanotechnology are considered to be at loss. These multinational companies on geting cognition from the support state will drift the cognition to its subordinates and strategic spouses in assorted states ; therefore enabling those states in going rich in that engineering without passing lucks on R & A ; D. Cultural & A ; national differences are now leaching in transferring of the engineering which should be dealt sensitively.


Every direction study has been prepared to assist the direction in some or other manner through the analytical reappraisal while the ultimate purpose is normally assist direction in determination devising. The study provides imperative beginnings to the direction in order to get at the reason in the concern policy devising, decision-making & A ; scheme planning. With this study, positions are developed in forepart of direction of the company in order to come in into the European Market, for the intent of taking benefit from engineering and research installations available in the foreign states to better the quality of merchandises and developing advanced characteristic rich merchandises to be used in broad scope of industries. United Kingdom is the good pitch for the concern in order to spread out their concern activities as both UK and Jiangsu Jiuchuan portion the same aim of going universe leaders in nanotechnology. Today, as universe faces a figure of social challenges which will be addressed by using the inventions from the nanoscaled constructions. UK authorities is back uping major nanotechnology programmes in the state in developing future capablenesss of nanoscaled constructions and have invited foreign companies to work together in partnerships with the authorities ; therefore going an ideal finish for Jiangsu Jiuchuan for its research and merchandise development. Administration will besides derive penetrations on the European civilization that would assist to turn concern in hereafter in the country and learn concern mechanics and accomplishments to accomplish higher returns in the place market.


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