BUSS 4 RESEARCH THEME- CHINA

ADVANTAGES - JOINT VENTURES

• Tesco operated in china for 9 years and reported a loss in ech of the 9 years
• This was due to clubcard idea not being succesful
• Joint venture to gain local knowledge
• Tesco will have a 20% stake
• CRE have a brand to create a business with sales approaching $10 billion.
• 20% stake can earn around $20 billion annually

• Worth 7.76 billion yuan ($1.27bn; £778m)
• Dongfeng motor group second largest in china
• Plans to build 150,000 vehicles and engines a year
• China is the largest car market
• 50-50 joint venture will be called Dongfeng Renault Automotive Co Ltd
• Vehicle sales rising by 4.3% in 2012 to 19.3m
• Under Chinese trade laws, foreign carmakers looking to launch manufacturing operations in China must have a local partner