STEVE PARKER AND THE GFS-CHINA TECHNOLOGIES VENTURE-B
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STEVE PARKER AND THE GFS-CHINA TECHNOLOGIES VENTURE-B

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STEVE PARKER AND THE GFS-CHINA TECHNOLOGIES VENTURE-B STEVE PARKER AND THE GFS-CHINA TECHNOLOGIES VENTURE-B Presentation Transcript

  • HRM 380 CASE ON STEVE PARKER AND THE GFS-CHINA TECHNOLOGIES VENTURE-B
  • Background
    • Steve Parker’s Positive Talk:
    • A Preliminary Conclusion
    •   GFS-China’s General Manager
    • Parker’s Response to Yin
    •   Yin’s Inside Character
    • Due Diligence
    • Failure of Financial Viability
    • Prime Initiatives
  • Background (contd)
    • Product Development
    • The Joint Venture (Re)Starts Operations
    • The $500,000 Loss
    •   Price Reduction and Li’s alleged brother
    •   Reduction Of Second Payment
    • The Purchasing Situation
    • Parker’s Options
  • HRM ISSUES
    • No integrated HR Department
    • No guided ethical standards or policies
    • No composite or advanced system of purchasing requirements
    • No compensation plans
    • No strong ties or retainable relationships with customers
    • Steve was not making decisions in a consistent manner where the consistency is needed in order to achieve breakeven on ongoing operations
  • MAIN ISSUE
    • Through dubious purchasing practices, and the joint venture bearing all the costs, and with no particular concern on Good Fortune’s part on the purchasing issue, what challenges are Parker facing and how is he going to unilaterally change the purchasing practices to sustain and keep up the costs to make this joint venture a profitable business?
  • SWOT ANALYSIS
    • STRENGTHS:
    • Diversified Business Opportunity
    • Heavily protected Chinese Car Market
    • Large Automotive Supplier
    • Joint Venture Startup
  • SWOT ANALYSIS(contd)
    • WEAKNESSES
    • Material Cost
    • No Guaranteed new technology associated with Business
    • Lack of Formal Education of the Manager
    • Struggling of foreign automobile firms in China
  • SWOT ANALYSIS(contd)
    • OPPERTUNITIES
    • Foreign Joint Venture
    • Significant Growth
    • Vast experience of the Manager
    • Heavily protected Chinese Car Market
  • SWOT ANALYSIS(contd)
    • THREATS
    • Struggling of foreign automobile firms in China
    • Difficult to Survive Without new Technology
    • Government Licensing Regulation
  • THEME
    • Steve Parker of Standard was positive about the joint venture with GFS-China
    • Yin Chung Li, GFS- China's general manager was not trustworthy.
    • Steve Parker fired the sales manager who was hired by Yin which has hampered their relationship.
  • THEME(contd)
    • Good Fortune was not providing enough financial information.
    • Good Fortune was not capable of building the new compressor even with technology transferred from Standard.
    • The dubious purchasing practices that enriched some individuals became a dilemma for Steve.
  • RECOMMENDATIONS
    • Parker should analyze annual reports, company statements and also compare with the other companies’ reports to figure out the financial viability of Good Fortune’s HVAC business or Parker must hire a financial expert who could dig into Good Fortune’s financial statements and help him publish the results.
  • RECOMMENDATIONS(contd)
    • Parker would have to adapt a newer strategy to build the new compressor, by outsourcing offshore or by training the workers using an international, intellectual technician.
  • RECOMMENDATIONS(contd)
    • GFS needs to restructure their marketing department, develop a new HR department, and follow rapidly emerging forces of globalization compelling the firm to market beyond the borders of their home country making International Marketing highly significant and an integral part of a firm's marketing strategy.
  • RECOMMENDATIONS(contd)
    • Purchasing is often treated as the poor relation compared to other functions within organizations - despite the fact that it has real and significant potential to improve business profit – so Parker should make sure that Good Fortune provide responsive procurement to obtain high quality goods and services that is streamline and automate the purchasing process.
  • IMPLEMENTATION
    • Steve could hire the services of The ICC Commercial Crime Services (CCS), a specialised division of the International Chamber of Commerce. As a specialised bureau within CCS, the Financial Investigation Bureau (FIB) conducts enquiries and investigations into matters associated with financial investigation, money laundering, fraud and suspect documents.
  • IMPLEMENTATION(contd)
    • There was training and development required in this level; however, outsourcing could be a better alternative to an expensive technician, so Parker would have to catch the latest information and communication technologies and can outsource any kind of project to a best off-shore team that can give him what he expects or hire human resources from a best outsourcing firm that have expertise in various needed domains and execute things in the way he wants.
  • IMPLEMENTATION(contd)
    • The late entrance of the compressor forced price reduction and led to competitors solidifying their positions; if Steve could not control the product’s marketing strategies, he would have to suffer the forcible price reductions. Steve Parker should implement careful marketing strategies to ensure profit maximization. Steve should also re-operate a new HR department and control all HR policies.
  • IMPLEMENTATION(contd)
    • Steve Parker must ensure executive management enforcement of purchasing deadlines and procedure and clear the idea that effective purchasing processes ensure that high-quality supplies, equipment and services are purchased at the best price, in the right quantity, from the right source and in accordance with local and state purchasing guidelines. These criteria must be met without sacrificing quality and timeliness.
  • THANK YOU…….