Profitable Entry Strategy

Profitable Entry Strategy - Profitable Entry Strategy Ron...

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Name of Event-Date [File Name/Location of file file] Page 1 R.S. McEachern Profitable Entry Strategy Ron McEachern Hong Kong, 2009
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Name of Event-Date [File Name/Location of file file] Page 2 R.S. McEachern Building A Powerful Consumer Brand In China China Brand Building Lays Case Study Practical Steps To A Successful China Soy And Laguna Examples China Brand Launch 1. Defining Competitive Advantage 2. Managing The Innovation Process 3. Leveraging Insights 4. Compelling Branding 5. Impactful Creative 6. Effective Media Selection 7. Reinforcing Image with Packaging 8. Effective Customer Management 9. Pricing and Promotion Plans 10. Profitable Entry Strategy 11. KPI’s and Performance Tracking 12. Managing HQ Expectations China Context
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Name of Event-Date [File Name/Location of file file] Page 3 R.S. McEachern What Challenges Could You  Expect To Face With A China  Joint Venture? Profitable Entry Strategy
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Name of Event-Date [File Name/Location of file file] Page 4 R.S. McEachern Beware Unstable Joint Venture Structures China JV structures have evolved in form and substance CJV : Contractual profit sharing EJV: Equity investment determines profit sharing WOFE: Wholly Foreign Owned Venture Almost by design a “Joint Venture” is unstable due to conflicting objectives Chinese partner often a former state owned enterprise; employment focused Foreign partner driven by western GAAP accounting and ‘strategic’ goals Expensive foreign employees unwelcome; foreign firm seen as “rich banker” Parrallel businesses or IPR issues rampant Chinese partner often unable/unwilling to make capital calls or be diluted China success no longer requires a “Chinese Partner” as guide Historically China JV partner thought to be crucial to navigate China success no longer requires a “Chinese Partner” as guide Profitable Entry Strategy
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Name of Event-Date [File Name/Location of file file] Page 5 R.S. McEachern Never Attempt To Rely On “Legal” Solutions Pay very close attention to the JV Agreement and Articles Of Association Have your battles up front Pay particular attention to GM and CFO appointment rights Payment for “expensive” foreign talent or hires How to address capital needs if/when Chinese partner can’t contribute Don’t expect to win any battles via the courts, even if your have iron clad evidence Work out all issues via discussion and concessions “face saving” is a very real dynamic…as well as differing time pressures Establish comprehensive JV governance principles Day 1 Insist on agendas, detailed minutes and regular board meetings Ensure all Board resolutions are signed during meeting and filed quickly Profitable Entry Strategy
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Name of Event-Date [File Name/Location of file file] Page 6 R.S. McEachern Establish Appropriate Brand Financials At The Outset
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Profitable Entry Strategy - Profitable Entry Strategy Ron...

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