CASE STUDY ON BEIJING-JEEP

Case Study on Beijing-Jeep

Executive summary

The case is about the Beijing Jeep which was founded in 1984. It was a joint venture between and Amercian and Chinese enterprise. In this updated version of case study, the Beijing Jeep, Jim Mann journalist traces the history of the troubled relationship between American companies and Chinese communism through the experiences of American Motors and its operation in China, Beijing Jeep, a company joint often closely followed the visit of American politicians and Chinese leaders. The company is facing It is recommended for the company that BJC should leverage the guanxi that is built with Chinese authorities and focus on government contacts. Try to focus on old jeeps that are suitable for masses.

Problem statement

Today is an interesting historical note on this is well aware of the difficulties encountered in trying to create AMC's first automobile manufacturing joint venture in China.

Analysis

In fact, these were the same difficulties that many U.S. companies met with others in the 1980's, when everyone was eager to enter the Chinese market. I think the same problems remain today. In fact, the Chinese bureaucracy is 10 times more corrupt (in more than one incident, the first Chinese officials visiting the U.S. to ask their American hosts are "where are the brothel blonde girls?") And the Chinese people more anti-westerns in the 1980's. BJ Jeep history is outdated. Every business executive who thinks about doing business in China should read this book, not a sweetened account how big is China. (Michael 2001) I grew up in China in the 80's and witnessed the economic revolution firsthand. What hurt more, even as a teenager was the degree of corruption in Chinese society and the government was becoming. Red envelopes - the place for corruption - were becoming commonplace, and required by all levels of bureaucrats with some degree of power. My recent trip back to China confirmed that the situation had not improved at all, but worse. Bossiness negotiations are a nightmare to the mainland of China. The book has a very interesting discussion in the beginning about how the overseas Chinese are so efficient, whereas mainlanders are inefficient, greedy and inept. Trust me, this is true even today. (Michael 2001)

Discussion of alternative

From my point of view, China is a market that U.S. business should or should go. Most foreign companies have joint ventures that do not make money in China and probably will not do so in the foreseeable future. The only ones who did a lot of money were the Japanese, who flooded (as told in the book) in the Chinese market in the 80's with cheap, commodity that mainland China had not seen. Today it is more difficult for China's own companies are increasingly competitive and people are no longer in fear for Western-style products. What this book teaches, then, is how to keep your expectations low if you want to do business in China, and how to avoid some common mistakes American executives tend to ...