Crown Worldwide Group: Relocating in China Under the Closer Economic Partnership Arrangement Harvard Case Solution & Analysis

In June 2003, the Government of Hong Kong and the People's Republic of China signed the Closer Economic Partnership Arrangement (CEPA). CEPA outlined conditions for the liberalization of trade in goods and services and support to companies incorporated in Hong Kong to establish a wholly owned enterprises on the mainland. One company that has benefited from the liberalization was Crown Worldwide Group. Jim Thompson founded in 1965 and is based in Hong Kong since 1970, Crown became the largest private company in the world providing relocation services and records management, and became a major player in the field of logistics. By 2003 the company had a global network of offices and depots in more than 100 cities on six continents. After the signing of CEPA, Crown has developed a plan to build a state-of warehouse / office complexes on the mainland. The first was to be in Shanghai, which will be followed by a second in Beijing, and then the other in several cities. Crown was successful in the first phase of the strategy: in August 2006, Shanghai staff were developing a new facility more than a year. Meanwhile, the Crown land located in Beijing and completed site preparations - but progress on construction stalled because of unexpected delays in the registration of the project approval from the authorities in Beijing. The delay raised the question: How best to proceed? He considers his options, Thompson weighed tactical considerations and strategic issues. The economic logic suggested the need to get a construction project back on track as quickly as possible. However, he knew that any action had to be in accordance with the core values ​​he cultivated on Crown, the company has earned its reputation as a global provider of logistics services, as well as the Crown plans for further expansion in China. "Hide
by Michael J. Fratantuono Source: University of Hong Kong, 31 pages. Publication Date: July 3, 2007. Prod. #: HKU653-PDF-ENG

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