• Negotiation in China: How Universal?

    This is a fictitious case in which Universal Studios, a major US theme parks and resorts company, has to negotiate with China's central government to build its first theme park in the country. Students are divided into groups, and each student is assigned a role as one of the negotiators or as an observer. The topics covered in the negotiation include the new theme park's location, ownership structure, size, nature of theme zones, local employment and hospitality training programmes. The case allows students to experience the difficulties of conducting negotiations in a cross-cultural setting.
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  • Mattel's Strategy after its Recall of Products Made in China

    In the summer of 2007, Mattel, the largest toymaker in the US, made several recalls of products that had been made in China. The recalls led not only to a sharp reduction in Mattel's sales but also to public hearings in the US Congress, which significantly affected Mattel's reputation. Like other toymakers, Mattel has been relocating its production abroad, outsourcing the manufacture of parts and components. Indeed, 65% of Mattel's products are made in China. In contrast to its competitors, however, Mattel has understood the importance of quality control in this relocation/outsourcing process. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for producing its most popular products. The product recalls show that quality control continues to be an issue. This case explores Mattel's strategy for organizing production, the trade-offs between in-house production and outsourcing, and the trade-offs between different production locations.
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  • Whistle Had Blown: How Should Tetra Pak Respond to China's Imminent Antitrust Law?

    Tetra Pak, the world's largest liquid food processor and packaging manufacturer, is among the multinational companies accused by the Chinese government of engaging in anticompetitive activities to eliminate competition in their respective markets. Concurrently, the Chinese government proposed a plan to roll out a new antitrust law in late 2005, to set up a fair market system in line with its goal to transform itself into a market economy. The new law attempts to rectify the vagueness of China's pre-existing competition policy. The government will closely scrutinize companies operating in China, especially foreign market leaders; these companies should guard against possible lawsuits. Considers the different aspects of China's antitrust policy and how companies should adapt to China's changing legal framework.
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