Riordan Manufacturing’s China Systems

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

To regulate the sales team perform to greatest benefit and therefore enable Riordan to meet its two-year revenue goal, a few internal efficiency concerns needs be addressed. At this time there are inequities in Riordan’s financial and accounting systems. Legacy work processes inside the inventory, purchasing, and shipping divisions, integrated with need of consolidation of essential customer information and sizeable sales data will hamper Riordan’s goals Right now Riordan Manufacturing has been

Many Chinese conglomerate firms may operate an inefficient internal capital market and effectively subsidize FDI (Liu, 2005).

Managing the regulatory environment remains a real issue for foreign firms operating in China. They have to learn how to deal with red tape, “guanxi (relationship)” and make breakthrough in the thicket of regulations and restrictions.

44. Before expanding to china, International enterprises must need to consider about the law of the People’s Republic of China, such as Foreign Trade Law, Arbitration Law, Trademark Law, Import and Export, Commercial Websites, Processing Zones, Foreign Investment, Patents and Foreign Investment Projects.

He could do so by paying his employees in China the same way he pays his employees in Silicon Valley, meaning that their payment would consist of salary and a percentage of stock ownership depending on their position in the company. With employee ownership he motivates the workers to work hard and responsible because their own success depends on the success of the company.

Indeed, one of the greatest opportunities available to SMEs following China's WTO reforms is that the Chinese state

Trade regulation policies can vary based on the imports and exports of the country. China is one of the biggest emerging economies, with immense potential to

Since the early 1980s, China has been one of the fastest growing markets. Policy shifts by the Communist government opened their doors to foreign firm investment in the country. The purpose of this memo is to inform you that firms foreign to China, like us in General Motors, will have a difficult time doing business there moving forward. The reasons why are mainly because of a government becoming increasingly hostile to foreign firms and the emergence of local competitors.

We have seen since early 1980’s in the 2000s companies from all over the world have been investing trillions of dollars in China market. Recently we saw this demand nearly double with the last few years. Large numbers of corporations are leaving their home country and opening headquarters abroad in China. These companies come from all types of industries. For example Software, Mining and Cosmetics industry, many big names such as Google, Microsoft and Apple also have their offices in China. Pepsi and Coca – Cola have also joined in on some of the profit. The question that is on everyone’s mind what are the reasons why foreign companies are moving to China. Thought this paper I am going to speak on the positive and negative effects we see

(James, 2009). Even in this kind of bad circumstances, China still remained as a largest recipient of FDI. China has listed of the top ten investment destination in the world in the consecutive year and its global market index has recorded 251 which is the highest in the ranking, were continued by United States of America by 212 and Brazil by 198. (Chinadaily, 2013). It showed that China has beat up USA for the first time since 2003 and maintained as the biggest country of FDI in the world in 2012 which proved the global investors are still confident to create FDI in china even though the downtrend of its economy which also proved that china is the most attractive country for investment. In addition, Most of the foreign invested enterprises only have to pay approximately around fifteen percent of profit tax at an actual rate in the first seven years of operation meanwhile the legal company income tax rate for home firms were thirty three percent which is significantly higher, showed an enormous benefits for FIEs and this preferential tax treatment has granted FIEs for nearly three decades.

Under current relevant laws and regulation, foreign investors have several options to set up their businesses in China. They can establish corporations in the form of EJVs, CJVs or WFOEs under the EJV law, CJV law or WFOE law respectively. In addition, they can set up limited liability companies (“LLC”) under the Company Law as well. Generally, Company Law is focus on regulating domestic enterprises instead

Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.

Outsourcing is very advantageous. In addition to reducing costs, it also helps firms and companies to improve the efficiency of business operations. The true line between business goals and deliverables in outsourcing. It also can increase productivity and efficiency. Outsourcing provider with expertise and experience can actually help streamline business processes and contribute to the line. Outsourcers can also benefit from third parties to improve the level of service consistently. This will improve the efficiency and can lead to customer satisfaction and lead the company better prepared for the challenges of specialized market.

Foreign Direct Investment (FDI) refers to an investment made by a firm or entity based in one country into a firm or entity based in another country. The investing firm may make its overseas investment in many forms, like mergers and acquisition or building new facilities in overseas (Hannon & Reddy, 2012). Thus, FDI have been a significant driver of economic development in China since the start of the Reform and Opening Policy in 1978 – 1979. Since the start of the reforms, China has begun to integrate more into global economy via trade and investment and become one of the most attractive economies for FDI flows from investors all over the world. According to the UNCTAD, China has exceeded the United