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Amway is a large manufacturer of household products that uses the direct selling approach. The company was established in the late 1940s and over the years, still using direct selling, branched into the United Kingdom, Europe and Japan. With this global success it expanded further, into the Chinese market. However, the company must look at its strategy after the Chinese government implements regulations on the direct marketing business model. The supplement Amway in China (B): Adopting to a Changing Environment, product 9B04M036, looks at how the company responds to the changing social and political environment.

The Chinese government has placed a ban on direct marketing. With direct marketing being the primary marketing method the company uses, it must respond to the changing social and political environment. This is a supplement to Amway in China (A): A New Business Model, product 9B04M035.

Amway is a large manufacturer of household products that uses the direct selling approach. The company was established in the late 1940s and over the years, still using direct selling, branched into the United Kingdom, Europe, and Japan. With this global success, it expanded further, into the Chinese market. However, the company must look at its strategy after the Chinese government implements regulations on the direct marketing business model.

Supplements the (A) case.

Qualcomm is a digital cellular communications company specializing in code division multiple access (CDMA) technology. The company spent a number of years developing this technology and in doing so missed many opportunities in adopting the technology as a worldwide standard; however, there are still some countries that have not yet made the decision on their second generation digital standard. With its income almost solely tied to this single technology, the stakes were high for Qualcomm in getting CDMA technology adopted. Supplement to this case, Qualcomm (B), product 9B01M074 discusses the company entering the Chinese market.

This supplement to Qualcomm in China (A), product 9B01M073, highlights the company's efforts in getting code division multiple technology adopted in the rapidly growing Chinese market.

Dell Computer Corporation is one of the largest computer manufacturers. The company's international business strategy has supported its global position and performance facing the Asian economic crisis. Its investment in Malaysia has reduced its foreign exchange exposure, and supported its low cost advantage. Now Dell needs to decide if it wants to expand its commitment in Malaysia and or other locations such as China.

In 1998 the soon-to-retire founder of China Kelon Group, a major home electrical appliance manufacturer, was confronting issues of market diversification (urban to rural), product diversification (refrigerator to now also produce air conditioners), and the evolution of his senior management team (from an entrepreneurial firm to one managed by professional manager). Besides offering a context to address the above issues, this case illustrate to a non-Chinese audience just how rapidly local Chinese manufacturing has developed, and that such firms are future competitors for foreign companies. It also helps students explore the broader question about the ability of founder/entrepreneurs to effectively manage the transition to becoming a larger, more diversified company. Supplement to this case is China Kelon Group (B): Integration After Merger, product number 9B03M005.

This supplement to China Kelon (A): Diversify or Not, product number 9B03M004, deals with the issue of integrating two large business groups after the Number 6 air conditioner manufacturer, Kelon Group, acquired the Number 5 air conditioner producer, Huabao. While Kelon Group is a non-state owned company, Huabao was spun off from a state owned enterprise group. It was a landmark acquisition case in which a non-state entrepreneurial firm took over a state enterprise that had strong name brand and national reputation. The two companies have different resource bases, history, tradition, corporate culture, management style, product features and reward systems. They were traditionally close rivals located in the same township. The two companies exhibit potential for synergy and the combined capacity will put the new Kelon-Huabao as the top air conditioner manufacturer in terms of market share. However, this outcome depends on a successful merger and integration.

Deals with the issue of integrating two large business groups after the No. 6 air conditioner manufacturer, Kelon Group, acquired the No. 5 air conditioner producer, Huabao. Whereas Kelon Group is a nonstate-owned company, Huabao was spun off from a state-owned enterprise group. It was a landmark acquisition case in which a nonstate entrepreneurial firm took over a state enterprise that had a strong name brand and national reputation. The two companies have different resource bases, history, tradition, corporate culture, management style, product features, and reward systems. They were traditionally close rivals located in the same township. The combined capacity will make the new Kelon-Huabao the top air conditioner manufacturer in terms of market share, assuming a successful merger and integration.

Beijing Jeep Corporation Ltd. was one of the first joint ventures between an American company, DaimlerChrysler Corporation and a Chinese enterprise, Beijing Automotive Works. Early in its operations, Beijing Jeep was given preferential treatment on tariffs and foreign exchange, and had spent many years developing relationships with senior government officials that protected them from import competition. After several years of negotiations, there was an agreement of terms for China to enter into the World Trade Organization. Terms of this agreement called for a steep reduction in tariffs for imported automobiles, which would lower entry barriers to the Chinese automotive industry, thus creating more competition for the company. Tariffs on components imported from the United States would also be reduced but this would not be enough to offset the flood of imported vehicles into the market. Entry into the World Trade Organization would mean a lot of changes, and Beijing Jeep must determine whether they should continue focusing on the relationships they have built with the government, or approach their joint venture partner for additional support.

Beijing Jeep Corp. Ltd. was one of the first joint ventures between an American company, DaimlerChrysler Corp., and a Chinese enterprise, Beijing Automotive Works. Early in its operations, Beijing Jeep was given preferential treatment on tariffs and foreign exchange and had spent many years developing relationships with senior government officials who protected it from import competition. After several years of negotiations, there was an agreement of terms for China to enter into the World Trade Organization. Terms of this agreement called for a steep reduction in tariffs for imported automobiles, which would lower entry barriers to the Chinese automotive industry, thus creating more competition for the company. Tariffs on components imported from the United States would also be reduced, but not enough to offset the flood of imported vehicles into the market. Entry into the World Trade Organization would mean a lot of changes, and Beijing Jeep must determine whether it should continue focusing on the relationships it has built with the government, or approach its joint venture partner for additional support.