Factory 539: China Star Technology Electronics Ltd. B 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. In case adds twist. After the purchase, after a 90-day period of stabilization, optimization of the plan of the strategic review, and the purchase of land to build a larger operation, the leadership team completes plans to give up two production lines and invest in the production of supercapacitors. At that moment, a key client conditioner asked to meet with the team, seeking to double its capacity to meet the market demand, which will result in the order of at least three times the number of capacitors China Star then produce. There was only one problem: the desired product line will be slated for elimination. Is not it makes sense to build a line of China Star was planning to de-emphasize? "Hide
by Gerry Yemen, Elliott N. Weiss, Paul J Simko, Marc W. Modica Source: Darden School of Business 8 pages. Publication Date: April 27, 2012. Prod. #: UV6047-PDF-ENG

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