The Asian economy, particularly China's, is experiencing explosive growth. China needs capital to fund the growth, and this presents a tremendous opportunity for an investment bank that can penetrate the market. Morgan Stanley establishes a joint venture with the China Construction Bank and three other partners to form China's first investment bank. The case discusses problems associated with establishing joint ventures and penetrating into developing markets.
The country manager of Gillette Indonesia is reviewing his 1996 marketing plan and considering whether the pace of market development and mix of product sales can be impacted by the level and type of Gillette expenditures in the market.
Volkswagen and Shanghai Sedan, have developed a joint venture to build western-quality autos in China. Having developed a supplier network capable of delivering quality components, the company now faces a need to expand capacity (demanding rapid expansion of their supplier network). In addition, Volkswagen is under pressure to bring more of the design activity over to China. A rewritten version of an earlier case.