China

  • CaterpillarA corporate strategy article by Thunderbird students Shen-Chun Lin, Aimee DeGrauwe, Eli Darby, Monica Willbrand, Raymond Caruso and James Moore

    CSR: The Reputation Necessity

    For most companies, Corporate Social Responsibility (CSR) is a face-saving, repair mission in reaction to some recently identified social injustice or industrial accident.  Examples of reputation saving CSR have been seen with Nike’s early reaction to substandard working conditions or Union Carbide’s Bhopal tragic explosion in 1984.  At best, most companies treat CSR as a cost center line item akin to corporate publicity or charity, where a separate division within the organization implements a “community outreach” program.  Although these programs do have merit, they are mainly counter balances to the damages a corporation’s normal operations have on the community and environment.  This inefficiency lies in the fact that many firms’ CSR attempts pit society and business against each other, when in reality they should be dependent.  In addition, CSR tends to push firms into thinking generally, rather than about shared value.  In the developed world, national and regional laws help regulate and limit the damage a company’s presence can have at large. From environmental regulations, to worker safety standards, many US and EU companies meet or exceed the bare minimums laid out by governments.

  • googleA corporate strategy article by Thunderbird students Eric Chown, Mike Grey, Nicholas Kincaid, Steve McCaa, Charles Midthun and Srikanth Venkatasubramanian

    Mei Huang's family has moved from Beijing to Shanghai and she misses her old friends. She had a great day in school today and has met a new boy -- she is really excited and wants to share the news -- what are they up to and wouldn't it be nice to just chat real time, even if it was online -- but the current service provider has strict limits on this capability. ... Wen Li met with a group of friends last night and they know there is something wrong with the way people are being treated by the local businesses -- the bosses seem to have no feeling or responsibility to the workers. This leads to thoughts about the Tiananmen Square uprising and the reasons for the demonstrations -- but there is no way to search for anything related to this period, everything is censored. ... Hui Zhong has been working on a report on the river systems in China, but the word for river “jiang” is the same as that of a former head of the communist party and searches for political information are taboo. (Ford) So she needs to be somewhat vague, and the information returned doesn't meet her needs. There must be a better search engine that understands more than exactly what is typed, something that understands what she wants or is looking for.

  • BoeingA corporate strategy article by Thunderbird students  Amanda Bhatia, David Freeman, David Wilson, Geoffrey Christanday, Jennifer Mousseau and Matthew Larson

    As China’s economy develops, so do the prospective opportunities for foreign firms eager to sell their goods and services to these new Chinese customers.  However, many multinational corporations have already tried and failed – and yet – what makes these MNC’s keep coming back?

    On March 6, 2012, Boeing and COMAC (Commercial Aircraft Corp. of China) announced[i] to the world that they will be joining forces for the first time ever, in creating a “collaboration agreement to partner in areas that will enable commercial aviation industry growth in China and potentially around the world”.  This partnership sounds well intentioned, but could make Boeing, and even Airbus (their current main competitor) nervous as to their future prospects in China and the future global market.  Will Boeing's partnership with COMAC provide Boeing with an opportunity to meet strong aircraft demand forecasts in China in coming years, or instead mean the creation of their own competitor?

  • China counterfeitsA corporate strategy article by Thunderbird students David Curtis, Merissa Gordon, Kori Joneson, Emily Mahoney, and Robert Thompson

    The luxury goods market in China is a must-enter space for global companies in this industry. Research indicates that multinational corporations (MNCs) need to assess their current strategies and take advantage of challenging, yet rewarding opportunities in emerging markets1.  By 2015, China will represent 20% ($27B) of the market in luxury goods, and MNCs like Marc Jacobs cannot afford to hesitate in penetrating this emerging market2.  The Chinese view these high-end products as “trophies of success” and are worn as such3.  Labels and visible brand symbols are critically important for show in public, but rarely of value in the home. While this new market opportunity presents promising avenues, the Chinese market is known for its battles with infringement through counterfeiting, parallel importing, or unauthorized selling of goods.  Companies like Marc Jacobs are forced to address this issue head on and seek ways within their global strategy to develop solutions.

  • COMACA corporate strategy article by Thunderbird students Brett Davis, Don Dennis, Tras Obsuwan, Kyungwhan Park and Ryan Wegner

    How comfortable would you feel if you boarded an aircraft that was entirely developed, manufactured, and assembled in China by a wholly-owned Chinese company?  That reality may occur in the near future. With global industry revenue projected to increase to $4 trillion by 2029[i], of which approximately 12% [ii] is expected to occur in the Chinese market, new competitors are quickly strengthening their positions in the historically duopolistic airline industry. Amongst these players is Commercial Aircraft Corporation of China (COMAC), a Chinese state-owned aircraft manufacturing company, which is focused on fiercely competing with industry leaders Boeing and Airbus. COMAC’s aspirations are to obtain market share and at the behest of the Chinese government reduce the country’s reliance on foreign airline manufacturers.

  • Caterpillar in China and IndiaBy Edward Matloub, Thomas McIntyre, Peter Rohlfer, Caelie Fryers, Bert Valencia Jr. and Aditya Koyyalamud

    Caterpillar has survived the recession and enhanced its global presence, but at what cost? Caterpillar is a quintessential American company with a highly differentiated brand that is recognized for quality and dependability. Founded in 1925, as a result of the merger of the Holt Company and C.L. Best Tractor Trailers, the company has left an indelible mark on American society. The Holt Company gained notoriety during the First World War with the production of heavy-duty tractor-trailers. The company also produced other machinery during World War II to build bridges, airstrips and an entire logistical network used to support the Allies. This cemented the company’s position as an all-American brand capable of attaining the highest quality. This image has remained with the company for three generations, and in 2008 Global Brands ranked Caterpillar number sixty-eight out of the top one hundred global brands. Despite this rich legacy, the firm operates in a highly competitive industry and is at a crossroads which will determine the future of the company and potentially re-define its image throughout the world.