RISKS OF OPERATING IN CHINA

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RISKS OF OPERATING IN CHINA

RISKS OF OPERATING IN CHINA

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BMW IDEA STOLEN IN CHINA

  • No copyright laws in china
  • "Shuanghuan manufactures the Noble mini car, an almost identical replica of the Smart Fortwo"
  • BMW threatened to sue as the car was a copy of theirs
  • Local business had permission from the Chinese government.
  • The car that the chinese firm produced is now banned from Germany
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IMPACT ON THE BRAND IMAGE- PRIMARK

  • Ethically immoral
  • Workers work 80 hours week
  • 5p an hour
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GOOGLE

  • Tried to impose their western vision
  • Lost sight of cultural preferences and social structures
  • 384 million internet users in China
  • China accounts for more than 1/5 of the 1.73 billion global internet population
  • Google didn't research domestic competition
  • Baidu had upper hand, allowed the chinese to search in their own language
  • Offered things Google didn't like free music downloads
  • Chinese people mainly use the internet for gaming, rather than work like in the west.
  • Prefer to use a mouse and not a keyboard as the chinese language has more characters than western languages.
  • Word of mouth is also preferred to blatant advertising (these were not taken into consideration)
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BRIDES GLAXOSMITHKLINE

  • Paying 3bn yuan ($439m; £323m) in bribes since 2007
  • 700 travel agencies and consultancies in which to transfer hundreds of millions in bribes in the last six years
  • Drug sales sunk 61% after it was hit by a bribery scandal
  • Sales of pharmaceuticals and vaccines in China were £750m last year
  • May withdraw from most important market in the world
  • Turnover rose 1% to £26.5bn in 2013 while pre-tax profit inched up 0.7% to £6.6bn
  • Drug and vaccine sales were down 18% in the final quarter of 2013 compared with a 61% drop in the previous quarter
  • CEO doubled his bonus last year collecting £1.9m
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