Factory 539: China Star Technology Electronics Ltd A Harvard Case Solution & Analysis

With interdisciplinary perspective of this region through a series of cases the purchase of a manufacturing company based in China, to provide a framework for the analysis of cost accounting, operational efficiency, and cross-cultural communication. It offers a discussion of strategies to acquire Chinese firm to enter a promising line of business for the Chinese market and provides an opportunity to present the basic accounting, communication, and operational conditions that can be studied in the following classes. The material includes an overview of the partnership between the Western and two Chinese leaders, the issues that they have discovered through due diligence, planning to break into a new market, and their efforts to communicate the principles of lean production in another language and culture. If possible, invite colleagues from accounting, communication, co-operation or to teach a class enriches the debate and provides an integrated experience. The case opens a review of capacitors plant in Henan Province, China, Peer Nielsen, Baocheng Yang, Li Zhihong and think about buying. They found a few issues: wages have gone unpaid for months, payroll taxes were the years of debt, one of the most profitable lines of production were "leased". Not only local competitors use technology, some made the same brand capacitors China Star. Then there were the product lines that lacked resources and huge unexplained power bill. But the political brass in the region could not wait to see the new owners purchased the plant with the intention to produce and give the necessary permission and support to get started. If a group to buy it? "Hide
by Gerry Yemen, Elliott N. Weiss, Paul J Simko, Marc W. Modica Source: Darden School of Business 13 pages. Publication Date: April 27, 2012. Prod. #: UV6046-PDF-ENG

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