What are the current potential key opportunities and threats for doing business in China for MNCs? Please use some industries as specific examples to illustrate the opportunities and threats

Article: “Building a second home in China”, by Jeff Galvin, Jimmy Hexter, and Martin Hirt, McKinsey Quarterly, June 2010.

Assignment:

This is a relatively “old” article published in 2010 but the ideas and frameworks discussed in this article are still relevant today. It provides an overview of the competitive dynamics in China. It analyzes the strategic importance of Chinese market, and offers comprehensive recommendations to multinational corporations (MNCs) operating (or intend to operate) in China. The authors indicate that “Multinational companies hoping to succeed in China can’t treat it as an interesting side bet any longer, they need to take China as seriously as they do their home market. Companies that succeed in China will create competitive advantages they can exploit in other markets. Companies that fail to do so may be vulnerable in their own home markets to attacks from Chinese companies and other multinationals that succeed in China.”

Based on this article, other required readings, lectures over the week and the information from any reliable sources as well as your personal experiences, please address the following questions. Please use subtitles to indicate that you are addressing each specific question listed.

• (7 points) What are the current potential key opportunities and threats for doing business in China for MNCs? Please use some industries as specific examples to illustrate the opportunities and threats. More recent examples are preferred and please DO NOT use the examples in the McKinsey article.
• (8 points) Using company examples (successes or failures) other than those in the McKinsey’s article, please illustrate why it is important to treat China as a 2nd home.
• (8 points) Please use a company example other than those in the McKinsey’s article to illustrate what multinational corporations should do in order to make China as a second home.
• (7 points) Compared with the McKinsey article, do you have any different views on Chinese market and/or on doing business in China, are there any weaknesses in this article on its analysis of doing business in China? Please clearly explain your reasons with some evidences and/or data.