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Student Name Here
Mr. Martin
ENG 102 MW
December 3, 2014
Shiloh
In any relationship, whether it be a marriage or even just a
work partnership,
communication is vital. In the short story Shiloh, Bobbie Ann
Mason uses imagery,
symbolism, and characters to show just how the failure to
communicate can result in the
destruction of even the strongest relationships.
Imagery is one of the elements Mason uses to illustrate how an
absence of
communication can be damaging to a relationship. Leroy has
spent most of his marriage
on the road yet when he comes home for good he does not
recognize his hometown or his
marriage, and is not sure what to do to reconcile himself to
either. Mason shows this
when writing, “He cruises the new subdivisions, feeling like a
criminal rehearsing for a
robbery. Norma Jean is probably right about a log house being
inappropriate here in the
new subdivisions. All the houses look grand and complicated.
They depress him” (71). In
a suddenly changing relationship a person can be caught off
guard and confused, not
knowing what if anything they can do to get used to those
changes. When Leroy and
Norma Jean visit Shiloh, after years of being pushed to go by
Norma Jean’s mother, their
marriage finally disintegrates. Mason writes, “The cemetery, a
green slope doted with
white markers, looks like a subdivision site. Leroy is trying to
comprehend that his
marriage is breaking up, but for some reason he is wondering
about white slabs in a
Student 2
graveyard” (76). Divorce is often thought of as the death of a
marriage, the end of an
entire way of life in some ways.
Like imagery, Mason also uses symbolism to show how a lack
of communication
can change relationships without the people in them noticing.
The organ that Leroy buys
Norma Jean is an example of how much she changes just in the
short time he is at home
going from playing all kinds of music on it to not playing it at
all. Mason illustrates this
when she writes, “She doesn’t play the organ anymore, though
her second paper was
called ‘Why Music Is Important To Me’ ” (73). Sometimes it is
smaller changes that
indicate a larger issue in a relationship that people do not pay
attention to. Throughout the
story Leroy keeps insisting he wants to build Norma Jean a log
cabin even after she tells
him she does not want it, which highlights the fact that he does
not really know his wife
anymore and is not listening to what how she is changing.
Mason writes:
“I’m going to build you this house,” says Leroy. “I want to
make you a
real home.”
“I don’t want to live in any log cabin.”
“It’s not a cabin, It’s a house.”
“I don’t care. It looks like a cabin.”
“You and me together could lift those logs. It’s just like lifting
weights.”
Norma Jean doesn’t answer. Under her breath, she is counting.
(71)
People tend to cling to their ideas of how their spouse should be
and miss cues that could
let them know that they are changing, and that the relationship
is not as idyllic as it
seems.
Student 3
Mason uses the characters of Leroy and Norma Jean to highlight
how people in a
relationship can miss or ignore all sorts of hints of discontent
from the other. Leroy is a
simple man who does not know what to say to his wife, nor how
to say it. Mason
illustrates this when she states, “Now Leroy has the sudden
impulse to tell Norma Jean
about himself, as if he had just met her. They have known each
other so long they have
forgotten a lot about each other. They could become
reacquainted. But when the oven
timer goes off and she runs to the kitchen, he forgets why he
wants to do this” (72).
Sometimes the lack of communication is not because a person
does not know what is
wrong but that they do not know how to bring up their
awareness of a problem, so they
simply leave it alone. Norma Jean is Leroy’s opposite, wanting
for him to get a job again
so that he is not dependent on her for all of his emotional needs.
Even so, she does not
tell him how unhappy she is until the very end, when Mason
writes:
“Everything was fine till Mama caught me smoking,” says
Norma Jean,
standing up. “That set something off.”
“What are you talking about?”
“She won’t leave me alone- you won’t leave me alone.” Norma
Jean
seems to be crying, but she is looking away from him. “I feel
eighteen
again. I can’t face that all over again.” She starts walking away.
“No, it
wasn’t fine. I don’t know what I’m saying. Forget it.” (76)
It is fairly common for the unhappy party in a relationship to
keep all their issues and
anger bottled up until they cannot contain it anymore and they
let it all out at once,
usually quite explosively.
Student 4
People in relationships, especially those that span years, tend to
forget to keep
open lines of communication with each other. In Shiloh, Bobbie
Ann Mason shows how
that can ruin those relationships with her use of imagery,
symbolism, and characters.
ASSIGNMENT 4 (TAKE HOME TEST)
INSTRUCTIONS TO CANDIDATES
CASE STUDY
Based on the case study “From Asia to Africa: the international
expansion of Hon Chuan enterprise East”, answer ALL three
(3) questions. It is recommended that the answer to each
question be approximately 500 -600 words in length. Each
question is worth 20 marks.
Question 1
Ethics serves as the foundation for what people do or do not and
ultimately what companies engage in globally. As such,
companies’ involvement in corporate social responsibility
(CSR) practices and sustainability initiatives can be traced back
to the ethical foundation of its employees and other
stakeholders, such as customers, shareholders, suppliers and
communities.
Highlight some of the ethical issues and dilemmas that Hon
Chuan may face in its factories in China, South East Asia and
Africa. To address the ethical issues, Hon Chuan may adopt
CSR practices. Drawing on relevant CSR theory(s) explain Hon
Chuan’ s motive to adopt CSR practices.
Question 2
Hon Chuan ‘s international strategy led to it expanding from
Taiwan to mainland China and then into Southeast Asia
(Indonesia, Thailand and Vietnam) and finally Africa. Conduct
an environmental assessment of doing business in Thailand and
Africa. How would Hong Chuan mitigate the cultural risk in
Africa?
Question 3
Hong Chuan uses various entry mode strategies in its
international expansion. For example, in China and Southeast
Asia it established strategic alliances with local beverage
manufacturers using the in-house model. In Africa, Hong Chuan
went into a joint venture arrangement with Shimada and created
Hon Shi Mozambique Lda. Hon Chuan held 60 per cent of the
shares and took charge of the operations and management.
Drawing on relevant entry mode theories, discuss the factors
influencing Hon Chuan’s preference for joint venture as a
choice of entry mode.
Emerald Emerging Markets Case Studies
From Asia to Africa: the international expansion of Hon Chuan
enterprise
Caleb Huanyong Chen, Allan KK Chan,
Article information:
To cite this document:
Caleb Huanyong Chen, Allan KK Chan, (2018) "From Asia to
Africa: the international expansion of Hon Chuan enterprise",
Emerald Emerging Markets Case Studies, Vol. 8 Issue: 1, pp.1-
33, https://doi.org/10.1108/EEMCS-06-2017-0145
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https://doi.org/10.1108/EEMCS-06-2017-0145
https://doi.org/10.1108/EEMCS-06-2017-0145
From Asia to Africa: the international
expansion of Hon Chuan enterprise
Caleb Huanyong Chen and Allan KK Chan
Caleb Huanyong Chen is
Research Associate at
Chinese Businesses Case
Centre, Hong Kong
Baptist University,
Kowloon, Hong Kong.
Allan KK Chan is
Professor at the
Department of Marketing,
Hong Kong Baptist
University, Kowloon,
Hong Kong.
It was an October morning in 2016, and it was still hot in
Taiwan. At the Hon Chuan
Enterprise headquarters, the president, Hsih-Chung Tsao, was
reading the latest monthly
report. Beside him was the chairman, Hung-Chuan Dai, his
sister’s son. Together they had
led the company expansion from Taiwan to mainland China and
then into Southeast Asia.
Their 41st factory had begun production two months earlier in
Mozambique, Africa. The
African base may help the company reach the turnover
milestone of NT$20bn
(approximately US$640m) in the next year. This NT$20bn
turnover had been a target since
2013, but they have so far failed to reach it. As an original
equipment manufacturer (OEM)
in beverage packaging and filling, Hon Chuan to some extent
relied on customers that
owned brands. After losing a key customer in mainland China,
the company had
experienced a three-year slump that forced Tsao to modify his
strategy. At the next board
meeting, Tsao had to present a strategic plan to the directors.
He had to get the company
back on a fast-growth track. However, his intention was not just
to add another
manufacturing base, but to transform the company’s business
structure through
international expansion. Africa was the new battlefield bearing
his ambition. In his mind,
there should be three stages. The first stage would entail
occupying the markets of
Mozambique and South Africa. The second stage would involve
establishing more factories
and penetrating more African locations. The final stage would
be launching self-owned
brand beverages, as the company had done in Cambodia just one
year earlier. Tsao’s plan
was to upgrade Hon Chuan to an OBM, holding destiny in its
own hands. Yet, how could
this be achieved in Africa? It would be a new journey full of
challenges. Africa was more
complex than other markets. The company’s first factory there
had just been established
and its future was still unknown. It was uncertain whether the
Cambodian model would also
work in Africa. Looking through the window, Tsao’s thoughts
were far away.
Company history
Hon Chuan was founded by Chin-Si Dai with NT$600,000
(approximately US$19,200)[1] in
1969. Chin-Si Dai named the company Hon Chuan after his son,
Hung-Chuan Dai. It started
as just a family business, producing straws and cap liners. Six
years later, the factory faced
some problems and was almost sold. Hsih-Chung Tsao, whose
elder sister married Chin-Si
Dai, returned from the army. Tsao joined the business, investing
all of the money he had,
and became a shareholder alongside the Dai family. At the time,
Tsao was only 24 years
old. Starting as a salesman, he worked very hard and actively
visited customers to seek
orders. In 1978, when Tsao was 27, the company’s capital
reached NT$4m (approximately
US$128,000) after reorganisation and Tsao took the role as the
company’s president.
Tsao tried to expand and improve products. He bought new
equipment to produce more
types of products including aluminium caps and colour labels.
These products received
certifications from international beverage companies such as
Coca-Cola and Pepsi. As the
Disclaimer. This case is written
solely for educational
purposes and is not intended
to represent successful or
unsuccessful managerial
decision-making. The authors
may have disguised names;
financial and other
recognizable information to
protect confidentiality.
DOI 10.1108/EEMCS-06-2017-0145 VOL. 8 NO. 1 2018, pp. 1-
33, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD
EMERGING MARKETS CASE STUDIES PAGE 1
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http://dx.doi.org/10.1108/EEMCS-06-2017-0145
company’s reputation grew, more orders arrived. Hence, Tsao
expanded production and
moved the company to a bigger place. Tsao himself was
recognised as the Model of Youth
Career Development of Taiwan in 1990.
In the 1990s, Hon Chuan began to establish subsidiary factories.
In 1991, the company
became Taiwan’s largest professional cap manufacturer. In
1992, Hon Chuan bought a
factory as its second manufacturing base in the same city. In
1993, Hon Chuan expanded
into mainland China by establishing a factory in Suzhou, a city
in the southeast of the
country. That was the company’s first step towards
internationalisation. In 1996, Chin-Si Dai
retired and his 32-year-old son, Hung-Chuan Dai, took over as
chairman. Hung-Chuan Dai
graduated from the National Taiwan University, the best
university in Taiwan. He then
obtained two master’s degrees, one in civil engineering and the
other in business
administration, from two American universities. When he
returned to Taiwan from the USA,
he first worked for the government. A few years later, when his
father retired, he joined the
family business. Together, the uncle, Hsih-Chung Tsao, and his
nephew, Hung-Chuan Dai,
led the company into a long, fast-growing period. They shared
the same office, where they
could discuss issues at any time and make decisions together.
In the first decade of the twenty-first century, Hon Chuan
experienced fast growth and
expansion. In 2001, Hon Chuan was publicly listed on Taiwan’s
stock market. The company
began to produce bottles in addition to caps and labels. In 2003,
Hon Chuan (China)
Holdings Co Ltd. was launched to manage the company’s
business in mainland China.
Four additional factories were built in the southeastern, central
and northern regions of
China in the same year. In 2004, Hon Chuan launched a new
business model called the
“in-house model”. Cooperating with its top customer, Uni-
President, Hon Chuan built
bottling lines in Uni-President’s beverage factories in Taiwan.
The in-house model was also
applied to Coca-Cola’s and other customers’ factories in both
Taiwan and mainland China.
Later, Hon Chuan expanded into the Southeast Asian countries,
namely, Thailand (2005),
Indonesia (2006) and Vietnam (2007). Hon Chuan (Asia)
Holdings Co Ltd. was established
to manage the business in Southeast Asia. Thus, Hon Chuan
established its business
layout in three regions: Taiwan, mainland China and Southeast
Asia. The sales turnover
reached a milestone of NT$10bn (approximately US$320m) in
2009, which was ten times
the turnover of 2001.
Since 2010, Hon Chuan had expanded even faster. Half of its
factories were built in that
period. Of the new factories, 12 were in Southeast Asia, 9 were
in mainland China and
2 in Taiwan. By October 2016, a total of 41 factories had been
established: 8 in Taiwan,
17 in mainland China, 15 in Southeast Asia and 1 in Africa
(Exhibit 1). After 47 years,
the originally small family business had become an
international, modern enterprise
(Exhibits 2 and 3). Hon Chuan had developed a wide range of
products and services
(Exhibit 4 and 5). It was the largest company in Taiwan and the
third-largest company
in mainland China in beverage packaging and filling. For 2020,
Tsao and Dai set the
goal of achieving a sales turnover of NT$40bn (approximately
US$1.28bn), effectively
doubling the number every five years from 2010.
Nevertheless, the sales turnover in recent years had not met
expectations. After reaching
the milestone of NT$10bn in 2009, the company’s sales
turnover continued to grow quickly,
reaching NT$15.6bn in 2012. However, the growth had slowed
down after 2013. The
company had expected the number would exceed the milestone
of NT$20bn
(approximately US$640m) since 2013. However, it had failed to
do so every year (Exhibit 6).
The sales turnover was NT$16.6bn in 2013 and NT$17.2bn in
2014. The number even
dropped for the first time in 2015 to NT$16.6bn, back to the
2013 level. In 2016, the
company again adjusted its prediction from NT$20bn to NT$17-
18bn. Tsao explained that
the company had lost billions in orders because its biggest
customer in mainland China
left. In Taiwan, food-safety scandals had influenced customers’
businesses and thus
PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES
VOL. 8 NO. 1 2018
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affected Hon Chuan’s performance. In Southeast Asia, the
construction of Hon Chuan’s
new factories had been delayed, and with that so had
production.
Hon Chuan’s business model
Tsao always valued good customer relationships. He tried hard
to develop good-quality
products and services. New materials, technologies and methods
were used to satisfy
customers’ various needs, such as material saving,
environmental protection, sterility and
aesthetic appeal. In the early years, Hon Chuan provided
products separately. Tsao,
however, developed a business model called the “vertically
integrated beverage
packaging and OEM strategic alliance”. He started integrating
different products such as
caps, labels and bottles and services such as beverage bottling
and logistics, in bundles
to provide customers with holistic, one-stop services (Exhibit
7). His efforts won customers’
recognition and trust. International giants such as Coca-Cola
and Pepsi and top local
companies such as Uni-President and HeySong had been Hon
Chuan’s key partners for
many years. Due to strong alliances with these customers, Hon
Chuan had become the
number one company in Taiwan, holding 80 per cent of the
market share. In the overseas
markets, Hon Chuan had also gained a lot. When its customers
expanded into new
markets, they often demanded Hon Chuan’s good-quality
products and services. Seeing
the demand, Hon Chuan was also glad to enter these markets.
By following its customers’
footsteps, Hon Chuan expanded its business into mainland
China and then Southeast Asia.
Tsao considered long-term, win–win alliances with customers as
the road to success. He
found that even beverage giants such as Coca-Cola were
concerned about costs due to
the tough competition in the beverage market. Thus, Tsao
developed the “in-house
coalition production model” (Exhibit 8) to help customers cut
costs. Under the model, Hon
Chuan built production lines in customers’ factories. Later,
Tsao developed an updated
version of the in-house model, which could take care of the
whole production process for
customers. Take bottled beverages as an example. After
installing bottle-blowing facilities
in customers’ factories and connecting them to customers’
filling machines, Hon Chuan
could produce bottles, fill them with beverages, attach labels to
them and then pack the
bottled beverages into boxes in the customers’ factories. Hon
Chuan provided personnel,
technology, equipment, packaging materials and production
management. Customers did
not need to invest in any of these; they only needed to provide
space. The in-house model
had a number of advantages:
� operating the whole production process in the same place to
save on transportation,
storage and supply management;
� keeping the supply of packaging materials efficient and
uniform;
� increasing productivity and reducing the defect rate;
� ensuring quality, sanitation and safety;
� enabling the use of lightweight PET bottles to reduce
spending on raw materials and
recycling; and
� reducing customers’ investment risk.
According to Tsao:
The in-house model is based on an extremely high level of trust.
The customers hand over the
production process to us because they trust us. You know, the
beverage will be sold to
consumers directly. On the other side, we put million-dollar
equipment in customers’ places. If
we do not trust them, that will not work. Hence, the cooperation
is very intimate. We sign
contracts as long as 10 years with customers under the in-house
model. It is very difficult for
competitors to break in. The model helps us grow stably and
guarantees us a certain level of
profit margin.
VOL. 8 NO. 1 2018 EMERALD EMERGING MARKETS CASE
STUDIES PAGE 3
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Using the in-house model, Tsao servitised the manufacturing
business. This was
considered to be the company’s key strategy and at the core of
its competitiveness. The
in-house model had been applied to more customers. About a
half of Hon Chuan’s factories
operated under this model. In-house factories usually cost
NT$100-200m (approximately
US$3.2-6.4m) for producing packaging materials or NT700-800
million (approximately
US$22.4-25.6m) for beverage filling, approximately half of a
normal factory. Due to high
automation, the in-house factories only needed very few
employees: 4-8 in Taiwan, 10-40
in mainland China and 10-30 in Southeast Asia, depending on
how many production lines
a factory had. Even in its normal factories, the employee
numbers were low compared to
other manufacturing companies. Its 41 factories had only 4,491
employees as of June
2016.
Entering mainland China
Despite the fact that Hon Chuan was an industry leader in
Taiwan, Tsao had never felt
complacent. Having a population of only 23 million people,
Taiwan’s market was small.
However, mainland China had a huge population, over 50 times
that of Taiwan’s. Like many
other Taiwanese companies, Hon Chuan went to mainland China
to seek a much bigger
market. In 1993, it established its first factory in mainland
China to produce caps and labels
for customers, such as Coca-Cola and Pepsi. In the 2000s, as
China’s beverage market
grew quickly, Hon Chuan built seven more factories. The Hon
Chuan (China) Holdings Co
Ltd. was launched in 2003 to manage its business in mainland
China. After 2010, Hon
Chuan built nine more factories to further expand its business in
mainland China. Although
competition was fierce, Hon Chuan earned a place among the
top three manufacturers in
mainland China.
Nevertheless, Tsao still felt that there was a sword of Damocles
hanging over his head – as
an OEM company, Hon Chuan relied heavily on its customers
just like all other OEM
companies do. In 2012, Tsao’s concerns were realised when Hon
Chuan lost its biggest
customer, Uni-President Enterprises Corporation. Uni-President
was the largest food and
beverage company in Taiwan. It entered mainland China in 1992
and became a key player
there. As Uni-President’s supplier, Hon Chuan had also
benefitted a lot from the expansion
of Uni-President’s business. In total, 40 per cent of the
company’s sales turnovers in
mainland China had been from Uni-President. Moreover, Hon
Chuan’s in-house model was
first launched with Uni-President in Taiwan and then applied to
more customers. However,
Uni-President reorganised its business in 2012: Ton Yi
Industrial Corp, its manufacturing
subsidiary in mainland China, launched a division to produce
packaging materials and
perform bottling. Therefore, Uni-President gradually cut orders
from Hon Chuan, which
pushed the company into a three-year slump from 2012 to 2014
and a loss of NT$5bn
(approximately US$160m) in mainland China.
As a result, Tsao changed his strategy:
We can’t depend solely on Uni-President forever – that was a
valuable lesson I learned. After
that, we adjusted our strategy to spread orders to more
customers. We gained more big
customers, like Master Kong[2], France’s Danone, China
Resources C’estbon Beverage,
and China’s Jiaduobao, so that any changes to a single customer
won’t cause us a fatal
blow.
Hon Chuan had since won long-term contracts from these big
customers. The contracts
with the top 10 biggest customers were all over three years
long, whereas the contracts
with the key customers such as Master Kong[3], Jiaduobao and
Wanglaoji were 10 years
or even longer.
Tsao also kept his eyes on market trends to choose customers.
He found that bottled
water was one of the fastest-growing goods in mainland China,
which had the largest
market of bottled water in the world. To take advantage of this
opportunity, Hon Chuan
PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES
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took on a subcontract from C’estbon, which was one of China’s
top three brands of
bottled water. For this, Tsao invested in four production lines in
2015.
The traditional functional beverage was another fast-growing
product in China. The key
players were mainly local companies, such as Jiaduobao and
Wanglaoji. Therefore, Hon
Chuan cooperated with Jiaduobao to build in-house production
lines, providing plastic
caps, labels, PET bottles and bottling services.
This strategy helped Hon Chuan turn a slump into growth,
which was soon expected to
reach the turnover milestone of NT$20bn (approximately
US$640m). However, Tsao
believed that the company had to take hold of its own destiny
by upgrading to an OBM and
developing its own brands.
Although mainland China was a huge market, the competition in
the beverage industry was
very tough. International brands, such as Coca-Cola and Pepsi,
had all come to compete
for the market. Taiwanese brands, such as Uni-President and
Master Kong, had invested
heavily in mainland China. Some of the local brands, such as
Wahaha, Jiaduobao and
C’estbon, were strong players. All of this made it difficult for
Hon Chuan to gain a foothold.
Furthermore, these brands were Hon Chuan’s important
customers. If Hon Chuan were to
become their competitor in the beverage industry, they might
abandon it. Then Hon Chuan
might lose its original manufacturing business. Therefore, Tsao
wanted to seek a new,
smaller market that the big customers would not care too much
for and in which the
competition would not be so strong.
Hon Chuan also needed a new market in which to expand its
manufacturing business. Its
brand customer, Uni-President, had expanded into Hon Chuan’s
manufacturing area and
quickly surpassed it. The largest manufacturer was a local
company, Zijiang. These top
three together shared 60 per cent of the market in mainland
China, with half of their share
held by Zijiang.
Expansion in Southeast Asia
At the beginning of the twenty-first century, Hon Chuan sought
a market other than
mainland China. At the time, one of its key customers, Uni-
President, was also looking for
a professional beverage packaging partner in Thailand. Before
then, all of Hon Chuan’s
products sold in Thailand and in other Southeast Asian
countries, exported from Taiwan. If
Hon Chuan had a manufacturing base in the region, Tsao
thought that it would be much
closer to the customers. Tsao considered Uni-President’s
invitation to be a good
opportunity to enter Southeast Asia. The two companies had
worked very well together for
years in Taiwan and mainland China. Hence, Hon Chuan
expanded into Thailand, taking
full control of the factory’s investment and production lines for
Uni-President. Its first factory
there was established in 2005, producing beverage labels and
PET preforms. One year
later, Hon Chuan expanded into Indonesia by cooperating with a
local company under the
in-house model. Then, in 2007, Hon Chuan cooperated with a
company in Vietnam to set
up in-house production lines for PET bottles.
After entering Southeast Asia, Tsao realised how big the market
was. He thought it was
necessary to build Hon Chuan’s own factories there to increase
production. However, the
company had just established the above three in-house factories
in the first five years.
Political stability was one of the reasons. For example, the
political situation in Myanmar had
been unstable during the early years of Hon Chuan’s expansion
into Southeast Asia.
Hence, the products sold to Myanmar were transported from
factories in Thailand, Taiwan,
mainland China and Indonesia until the situation changed in
2012 and the political situation
stabilised. Coca-Cola, Hon Chuan’s key customer, also began
production in Myanmar at
that time. In addition, Pepsi and a local company also demanded
Hon Chuan’s products for
their beverage businesses in Myanmar. Following in its
customers’ footsteps, Hon Chuan
confirmed its decision to enter the country. The construction of
its first factory began in
VOL. 8 NO. 1 2018 EMERALD EMERGING MARKETS CASE
STUDIES PAGE 5
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)
2012. The factory began operations in 2015. Later, in 2016, the
USA ended its economic
sanctions against Myanmar and resumed special trade
preferences with the country. Tsao
sensed that economic prospects would improve. Therefore, Hon
Chuan expanded its
existing factory and increased its investment in a second factory
in Myanmar. Thus, it
strengthened its production capacity to serve the local market.
The unstable political situation in Thailand was also
challenging. The country was
controlled by the military. Coups would occur from time to
time. Fortunately, the coups did
not have a huge effect on Hon Chuan. Its factories were all
located in the industrial area
outside of the capital, Bangkok. Although there were clashes
and martial law was imposed
in Bangkok, neither traffic nor transportation in the industrial
area was restricted. Hon
Chuan’s factories could operate and shipments were regular.
After 2010, Hon Chuan started to expand into Southeast Asia on
a large scale. The political
situation had improved and economic growth had been stable.
Members of the Association
of Southeast Asian Nations (ASEAN) had gradually lowered
their import duties to zero.
Moreover, losing Uni-President in mainland China also forced
Hon Chuan to pay more
attention to Southeast Asia. Hence, Hon Chuan increased
investment by establishing more
factories or in-house production lines in its existing bases: three
more in Thailand (in 2010,
2011 and 2015), three more in Indonesia (2010, May 2014 and
September 2014) and one
more in Vietnam (2011). Moreover, the business was also
expanded into more countries in
the region, such as Malaysia (2011 and 2013), Myanmar (2014
and 2016) and Cambodia
(2015). Hon Chuan built as many as 15 factories (six under the
in-house model) in six
Southeast Asian countries. The factory network enabled Hon
Chuan to coordinate
resources, orders and manufacturing among different factories
in the region when some of
them were fully loaded or were affected by accidents such as
flooding. This was one of the
reasons why Hon Chuan increased investment in the region.
Tsao predicted that Southeast
Asia would contribute to up to 40 per cent of the company’s
sales turnover, which would
equal the contribution of mainland China.
Cambodia was Hon Chuan’s newest base in Southeast Asia.
Tsao met a Taiwanese
business owner who had a food company in Cambodia. The
company had experience
producing self-owned brand products and had accumulated
channels in the local market.
Tsao thought it was the right time to transform Hon Chuan’s
business structure by
upgrading to an OBM. Hence, in 2015, Hon Chuan launched its
first self-owned beverage
brand, “Honly” (Exhibit 9). Cooperating with that company,
Hon Chuan invested US$8.82m,
holding 60 per cent of the shares in the joint venture[4]. Hon
Chuan provided the
technology and took charge of operations and management,
whereas its partner focused
on marketing channels. The first product, “Pobo Yogurt”, went
on sale in August 2016.
There were three flavours: original, grape and strawberry. The
retail price was set at
KHR2000 (approximately US$0.5) per bottle, the same as that
of Coca-Cola and double of
bottled water. The company ran marketing campaigns all year
long, including television
adverts, sales promotions (KHR3000 for two bottles),
street/market promotions, rewards
printed inside bottle caps (to redeem free drinks, cash, cell
phones, computers and
motorcycles etc.), and community activities. Honly’s banners
and beach umbrellas were
seen everywhere, such as small vendors, retail stores,
supermarkets and markets in both
urban and rural regions. Later, the company introduced more
products, such as refreshing
drinks and fruit juices. As the weather in Southeast Asia was
hot all year-round, the demand
for beverages remained strong[5]. Tsao predicted that, after
promotion and development
in the first year, the sales turnover might reach NT$200-300m
(approximately US$6.4-9.6m)
in the second year and NT$500m (approximately US$16m) in
the fifth year. Hon Chuan also
planned to add more flavours and introduce more products such
as honey lemon green tea
and vitamin water in the coming months. Different products,
flavours and packages would
target different clusters of consumers. Moreover, Tsao was
thinking about expanding
marketing channels and branding in other countries.
PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES
VOL. 8 NO. 1 2018
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Tsao explained his strategy:
We chose Southeast Asia rather than China to launch our self-
owned brand. Mainland China of
course has the largest population of 1.3 billion and will be the
world’s largest beverage market.
However, the competition is too fierce to us. Western leading
brands have invested heavily
there. Besides, local brands have also occupied significant
shares. We are not able to compete
with them. Moreover, they are our current customers and some
are key customers, indeed. We
don’t want to displease them by entering the business as a rival,
which may influence our
current core business in packaging and filling. So, we decided
to start in a smaller market, like
Southeast Asia. The competition is less intense. Large
companies may have less interest in such
small markets. And the local brands haven’t maturely developed
yet. I think this would be our
chance.
Nevertheless, Tsao’s ambition was more than that. He then
turned his gaze towards Africa.
From Asia to Africa
Africa (Exhibit 10) had been regarded as the last undeveloped
continent but had recently
been recognised as the newest emerging market with great
potential. Economic growth in
Africa had been rapid in the past decade. The average GDP
growth in Africa was 5.4 per
cent between 2000 and 2010. In that period, six of the ten
fastest-growing economies in the
world were from Africa. This growth slowed down after 2011,
but it was still relatively high
among all continents of the world. In 2016, some African
countries made it to the top of the
list of the fastest-developing economies (Exhibit 11). The
continent’s population was
growing fast, suggesting a large labour force. …
Assignment 4 Submission Instruction
Important :
•Assignment 4 is based on a case study which will be given on
Tuesday 9 June.
•Just like assignment 2, you are expected to read the case study.
•You will be given 3 questions from the case study covering
lecture 2, 3, 7, 8 and
10. Just focus on the following lectures. Answer all three
questions.
• The submission is just like any other assignment.
•The format is as follows:
- font size : 12
- double spacing (1.5)
- use times new roman.
- you can use subheadings if you want.
- use essay format.
- no point form.
- In text citations are not required. References are not required.
Submission
•You are will be given 6 hours to complete the 3 questions.
Poetry Explication
-3 pages
no works cited page
required.
Poets are often stereotyped as eccentric or hard to understand.
Often their messages seem
buried within the lines of their work, veiled by obscure diction
or syntax. It is no wonder, then,
that when writing about poetry it is called explication rather
than analysis.
The first and often hardest thing to do when explicating a poem
is to develop a theme
(see p 841 in Lit). I want you in the same city with your theme,
not necessarily in the same
ballpark. Read both poetry selections and ask your self the
questions on p 763 in Lit. When you
develop your theme (meaning) remember to connect it to one of
three things:
Do not give me a “one word” theme such as, “The theme of Ode
on a Grecian Urn is
immortality.” Immediately, I will ask, “so what?” What about
immortality relates to human
nature, society, or culture? Do not develop a “summary theme”
such as, “Meditations on the
South Valley is about someone living in a small town where
there is a lot of gossip.” Once you
have developed a theme, decide what three elements of poetry
the poet uses to advance that
theme. These elements can be found in Chapter 13 in Lit., and
here are the main elements I
would like you to use:
eaker and Tone
Your paper will be written in the five paragraph essay format
(refer to the “Five Paragraph
Essay” under “Course Documents.” Every specific support must
include a direct quote from the
poem. This will be your illustration or the I in PIE.
The first paragraph should include all of the following and I do
not mind if you use this example
in your explication:
In the poem insert poem title here (italicize or place within
quotation marks – not both)
poet’s full name uses element of poetry (point A), element of
poetry (point B), and element of
poetry (point C) to advance the theme of insert your theme here.
Refer to the sample student paper I have posted under “Course
Documents.”
Although you do not need a works cited page, you do need to
cite the line(s) of poetry you use.
Here are a few pointers on MLA and poetry citations:
mple: Baca
writes, “
love the wind” (ln 1). [the ln
indicates a single line. Notice how the introduction is in present
tense. The entire paper
should be written that way]
nes are cited this way: Baca writes, “I love the
wind / when it blows through
my barrio” (lns 1-2). [a forward slash / indicates a line break.
punctuation:
Baca writes:
I love the wind
when it blows through my barrio.
It hisses its snake love
down calles de polvo,
and cracks egg-shell skins
of abandoned homes. (lns 1-6)
(If you use a block quote, format with a hanging indent two tab
spaces from the left margin)
The explanation portion of your specific supports or the E in
PIE is where most students
have the most difficulty. You make a point, give an illustration
from the poem in the form of a
direct quote, then offer an explanation, which often turns out to
be nothing more than a summary
of the quote. Just as you linked your theme to human nature,
society, or culture, you should link
your explanation the same way. Be sure the explanation is
connected to your theme! Refer to the
sample paper for an example of this. Good luck writing!
Student Name Here Mr. Martin ENG 102 MW December 3.docx

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Student Name Here Mr. Martin ENG 102 MW December 3.docx

  • 1. Student Name Here Mr. Martin ENG 102 MW December 3, 2014 Shiloh In any relationship, whether it be a marriage or even just a work partnership, communication is vital. In the short story Shiloh, Bobbie Ann Mason uses imagery, symbolism, and characters to show just how the failure to communicate can result in the destruction of even the strongest relationships. Imagery is one of the elements Mason uses to illustrate how an absence of communication can be damaging to a relationship. Leroy has spent most of his marriage on the road yet when he comes home for good he does not recognize his hometown or his marriage, and is not sure what to do to reconcile himself to either. Mason shows this
  • 2. when writing, “He cruises the new subdivisions, feeling like a criminal rehearsing for a robbery. Norma Jean is probably right about a log house being inappropriate here in the new subdivisions. All the houses look grand and complicated. They depress him” (71). In a suddenly changing relationship a person can be caught off guard and confused, not knowing what if anything they can do to get used to those changes. When Leroy and Norma Jean visit Shiloh, after years of being pushed to go by Norma Jean’s mother, their marriage finally disintegrates. Mason writes, “The cemetery, a green slope doted with white markers, looks like a subdivision site. Leroy is trying to comprehend that his marriage is breaking up, but for some reason he is wondering about white slabs in a Student 2 graveyard” (76). Divorce is often thought of as the death of a marriage, the end of an
  • 3. entire way of life in some ways. Like imagery, Mason also uses symbolism to show how a lack of communication can change relationships without the people in them noticing. The organ that Leroy buys Norma Jean is an example of how much she changes just in the short time he is at home going from playing all kinds of music on it to not playing it at all. Mason illustrates this when she writes, “She doesn’t play the organ anymore, though her second paper was called ‘Why Music Is Important To Me’ ” (73). Sometimes it is smaller changes that indicate a larger issue in a relationship that people do not pay attention to. Throughout the story Leroy keeps insisting he wants to build Norma Jean a log cabin even after she tells him she does not want it, which highlights the fact that he does not really know his wife anymore and is not listening to what how she is changing. Mason writes: “I’m going to build you this house,” says Leroy. “I want to make you a
  • 4. real home.” “I don’t want to live in any log cabin.” “It’s not a cabin, It’s a house.” “I don’t care. It looks like a cabin.” “You and me together could lift those logs. It’s just like lifting weights.” Norma Jean doesn’t answer. Under her breath, she is counting. (71) People tend to cling to their ideas of how their spouse should be and miss cues that could let them know that they are changing, and that the relationship is not as idyllic as it seems. Student 3 Mason uses the characters of Leroy and Norma Jean to highlight how people in a relationship can miss or ignore all sorts of hints of discontent from the other. Leroy is a simple man who does not know what to say to his wife, nor how to say it. Mason illustrates this when she states, “Now Leroy has the sudden
  • 5. impulse to tell Norma Jean about himself, as if he had just met her. They have known each other so long they have forgotten a lot about each other. They could become reacquainted. But when the oven timer goes off and she runs to the kitchen, he forgets why he wants to do this” (72). Sometimes the lack of communication is not because a person does not know what is wrong but that they do not know how to bring up their awareness of a problem, so they simply leave it alone. Norma Jean is Leroy’s opposite, wanting for him to get a job again so that he is not dependent on her for all of his emotional needs. Even so, she does not tell him how unhappy she is until the very end, when Mason writes: “Everything was fine till Mama caught me smoking,” says Norma Jean, standing up. “That set something off.” “What are you talking about?” “She won’t leave me alone- you won’t leave me alone.” Norma Jean
  • 6. seems to be crying, but she is looking away from him. “I feel eighteen again. I can’t face that all over again.” She starts walking away. “No, it wasn’t fine. I don’t know what I’m saying. Forget it.” (76) It is fairly common for the unhappy party in a relationship to keep all their issues and anger bottled up until they cannot contain it anymore and they let it all out at once, usually quite explosively. Student 4 People in relationships, especially those that span years, tend to forget to keep open lines of communication with each other. In Shiloh, Bobbie Ann Mason shows how that can ruin those relationships with her use of imagery, symbolism, and characters. ASSIGNMENT 4 (TAKE HOME TEST) INSTRUCTIONS TO CANDIDATES CASE STUDY Based on the case study “From Asia to Africa: the international expansion of Hon Chuan enterprise East”, answer ALL three
  • 7. (3) questions. It is recommended that the answer to each question be approximately 500 -600 words in length. Each question is worth 20 marks. Question 1 Ethics serves as the foundation for what people do or do not and ultimately what companies engage in globally. As such, companies’ involvement in corporate social responsibility (CSR) practices and sustainability initiatives can be traced back to the ethical foundation of its employees and other stakeholders, such as customers, shareholders, suppliers and communities. Highlight some of the ethical issues and dilemmas that Hon Chuan may face in its factories in China, South East Asia and Africa. To address the ethical issues, Hon Chuan may adopt CSR practices. Drawing on relevant CSR theory(s) explain Hon Chuan’ s motive to adopt CSR practices. Question 2 Hon Chuan ‘s international strategy led to it expanding from Taiwan to mainland China and then into Southeast Asia (Indonesia, Thailand and Vietnam) and finally Africa. Conduct an environmental assessment of doing business in Thailand and Africa. How would Hong Chuan mitigate the cultural risk in Africa? Question 3 Hong Chuan uses various entry mode strategies in its international expansion. For example, in China and Southeast Asia it established strategic alliances with local beverage manufacturers using the in-house model. In Africa, Hong Chuan went into a joint venture arrangement with Shimada and created Hon Shi Mozambique Lda. Hon Chuan held 60 per cent of the shares and took charge of the operations and management.
  • 8. Drawing on relevant entry mode theories, discuss the factors influencing Hon Chuan’s preference for joint venture as a choice of entry mode. Emerald Emerging Markets Case Studies From Asia to Africa: the international expansion of Hon Chuan enterprise Caleb Huanyong Chen, Allan KK Chan, Article information: To cite this document: Caleb Huanyong Chen, Allan KK Chan, (2018) "From Asia to Africa: the international expansion of Hon Chuan enterprise", Emerald Emerging Markets Case Studies, Vol. 8 Issue: 1, pp.1- 33, https://doi.org/10.1108/EEMCS-06-2017-0145 Permanent link to this document: https://doi.org/10.1108/EEMCS-06-2017-0145 Downloaded on: 04 November 2018, At: 21:15 (PT) References: this document contains references to 9 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 132 times since 2018* Users who downloaded this article also downloaded: (2018),"Uber technologies Inc.: re-entering the South Korean Taxi hailing service after the eviction", Emerald Emerging Markets Case Studies, Vol. 8 Iss 1 pp. 1-29 <a href="https://doi.org/10.1108/EEMCS-04-2017-
  • 9. 0070">https://doi.org/10.1108/ EEMCS-04-2017-0070</a> (2016),"Corruption in Russia: IKEA’s expansion to the East (A- D)", Emerald Emerging Markets Case Studies, Vol. 6 Iss 2 pp. 1-25 <a href="https://doi.org/10.1108/EEMCS-11-2015- 0199">https://doi.org/10.1108/EEMCS-11-2015-0199</a> Access to this document was granted through an Emerald subscription provided by emerald-srm:451335 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. D ow nl
  • 11. 20 18 ( PT ) https://doi.org/10.1108/EEMCS-06-2017-0145 https://doi.org/10.1108/EEMCS-06-2017-0145 From Asia to Africa: the international expansion of Hon Chuan enterprise Caleb Huanyong Chen and Allan KK Chan Caleb Huanyong Chen is Research Associate at Chinese Businesses Case Centre, Hong Kong Baptist University, Kowloon, Hong Kong. Allan KK Chan is Professor at the Department of Marketing, Hong Kong Baptist University, Kowloon, Hong Kong. It was an October morning in 2016, and it was still hot in Taiwan. At the Hon Chuan Enterprise headquarters, the president, Hsih-Chung Tsao, was reading the latest monthly report. Beside him was the chairman, Hung-Chuan Dai, his sister’s son. Together they had
  • 12. led the company expansion from Taiwan to mainland China and then into Southeast Asia. Their 41st factory had begun production two months earlier in Mozambique, Africa. The African base may help the company reach the turnover milestone of NT$20bn (approximately US$640m) in the next year. This NT$20bn turnover had been a target since 2013, but they have so far failed to reach it. As an original equipment manufacturer (OEM) in beverage packaging and filling, Hon Chuan to some extent relied on customers that owned brands. After losing a key customer in mainland China, the company had experienced a three-year slump that forced Tsao to modify his strategy. At the next board meeting, Tsao had to present a strategic plan to the directors. He had to get the company back on a fast-growth track. However, his intention was not just to add another manufacturing base, but to transform the company’s business structure through international expansion. Africa was the new battlefield bearing his ambition. In his mind, there should be three stages. The first stage would entail occupying the markets of Mozambique and South Africa. The second stage would involve establishing more factories and penetrating more African locations. The final stage would be launching self-owned brand beverages, as the company had done in Cambodia just one year earlier. Tsao’s plan was to upgrade Hon Chuan to an OBM, holding destiny in its own hands. Yet, how could this be achieved in Africa? It would be a new journey full of challenges. Africa was more
  • 13. complex than other markets. The company’s first factory there had just been established and its future was still unknown. It was uncertain whether the Cambodian model would also work in Africa. Looking through the window, Tsao’s thoughts were far away. Company history Hon Chuan was founded by Chin-Si Dai with NT$600,000 (approximately US$19,200)[1] in 1969. Chin-Si Dai named the company Hon Chuan after his son, Hung-Chuan Dai. It started as just a family business, producing straws and cap liners. Six years later, the factory faced some problems and was almost sold. Hsih-Chung Tsao, whose elder sister married Chin-Si Dai, returned from the army. Tsao joined the business, investing all of the money he had, and became a shareholder alongside the Dai family. At the time, Tsao was only 24 years old. Starting as a salesman, he worked very hard and actively visited customers to seek orders. In 1978, when Tsao was 27, the company’s capital reached NT$4m (approximately US$128,000) after reorganisation and Tsao took the role as the company’s president. Tsao tried to expand and improve products. He bought new equipment to produce more types of products including aluminium caps and colour labels. These products received certifications from international beverage companies such as Coca-Cola and Pepsi. As the Disclaimer. This case is written
  • 14. solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality. DOI 10.1108/EEMCS-06-2017-0145 VOL. 8 NO. 1 2018, pp. 1- 33, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1 D ow nl oa de d by M on as h U ni ve rs
  • 15. ity A t 2 1: 15 0 4 N ov em be r 20 18 ( PT ) http://dx.doi.org/10.1108/EEMCS-06-2017-0145 company’s reputation grew, more orders arrived. Hence, Tsao expanded production and moved the company to a bigger place. Tsao himself was recognised as the Model of Youth Career Development of Taiwan in 1990. In the 1990s, Hon Chuan began to establish subsidiary factories.
  • 16. In 1991, the company became Taiwan’s largest professional cap manufacturer. In 1992, Hon Chuan bought a factory as its second manufacturing base in the same city. In 1993, Hon Chuan expanded into mainland China by establishing a factory in Suzhou, a city in the southeast of the country. That was the company’s first step towards internationalisation. In 1996, Chin-Si Dai retired and his 32-year-old son, Hung-Chuan Dai, took over as chairman. Hung-Chuan Dai graduated from the National Taiwan University, the best university in Taiwan. He then obtained two master’s degrees, one in civil engineering and the other in business administration, from two American universities. When he returned to Taiwan from the USA, he first worked for the government. A few years later, when his father retired, he joined the family business. Together, the uncle, Hsih-Chung Tsao, and his nephew, Hung-Chuan Dai, led the company into a long, fast-growing period. They shared the same office, where they could discuss issues at any time and make decisions together. In the first decade of the twenty-first century, Hon Chuan experienced fast growth and expansion. In 2001, Hon Chuan was publicly listed on Taiwan’s stock market. The company began to produce bottles in addition to caps and labels. In 2003, Hon Chuan (China) Holdings Co Ltd. was launched to manage the company’s business in mainland China. Four additional factories were built in the southeastern, central and northern regions of China in the same year. In 2004, Hon Chuan launched a new
  • 17. business model called the “in-house model”. Cooperating with its top customer, Uni- President, Hon Chuan built bottling lines in Uni-President’s beverage factories in Taiwan. The in-house model was also applied to Coca-Cola’s and other customers’ factories in both Taiwan and mainland China. Later, Hon Chuan expanded into the Southeast Asian countries, namely, Thailand (2005), Indonesia (2006) and Vietnam (2007). Hon Chuan (Asia) Holdings Co Ltd. was established to manage the business in Southeast Asia. Thus, Hon Chuan established its business layout in three regions: Taiwan, mainland China and Southeast Asia. The sales turnover reached a milestone of NT$10bn (approximately US$320m) in 2009, which was ten times the turnover of 2001. Since 2010, Hon Chuan had expanded even faster. Half of its factories were built in that period. Of the new factories, 12 were in Southeast Asia, 9 were in mainland China and 2 in Taiwan. By October 2016, a total of 41 factories had been established: 8 in Taiwan, 17 in mainland China, 15 in Southeast Asia and 1 in Africa (Exhibit 1). After 47 years, the originally small family business had become an international, modern enterprise (Exhibits 2 and 3). Hon Chuan had developed a wide range of products and services (Exhibit 4 and 5). It was the largest company in Taiwan and the third-largest company in mainland China in beverage packaging and filling. For 2020, Tsao and Dai set the goal of achieving a sales turnover of NT$40bn (approximately
  • 18. US$1.28bn), effectively doubling the number every five years from 2010. Nevertheless, the sales turnover in recent years had not met expectations. After reaching the milestone of NT$10bn in 2009, the company’s sales turnover continued to grow quickly, reaching NT$15.6bn in 2012. However, the growth had slowed down after 2013. The company had expected the number would exceed the milestone of NT$20bn (approximately US$640m) since 2013. However, it had failed to do so every year (Exhibit 6). The sales turnover was NT$16.6bn in 2013 and NT$17.2bn in 2014. The number even dropped for the first time in 2015 to NT$16.6bn, back to the 2013 level. In 2016, the company again adjusted its prediction from NT$20bn to NT$17- 18bn. Tsao explained that the company had lost billions in orders because its biggest customer in mainland China left. In Taiwan, food-safety scandals had influenced customers’ businesses and thus PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 1 2018 D ow nl oa de d
  • 20. PT ) affected Hon Chuan’s performance. In Southeast Asia, the construction of Hon Chuan’s new factories had been delayed, and with that so had production. Hon Chuan’s business model Tsao always valued good customer relationships. He tried hard to develop good-quality products and services. New materials, technologies and methods were used to satisfy customers’ various needs, such as material saving, environmental protection, sterility and aesthetic appeal. In the early years, Hon Chuan provided products separately. Tsao, however, developed a business model called the “vertically integrated beverage packaging and OEM strategic alliance”. He started integrating different products such as caps, labels and bottles and services such as beverage bottling and logistics, in bundles to provide customers with holistic, one-stop services (Exhibit 7). His efforts won customers’ recognition and trust. International giants such as Coca-Cola and Pepsi and top local companies such as Uni-President and HeySong had been Hon Chuan’s key partners for many years. Due to strong alliances with these customers, Hon Chuan had become the number one company in Taiwan, holding 80 per cent of the market share. In the overseas
  • 21. markets, Hon Chuan had also gained a lot. When its customers expanded into new markets, they often demanded Hon Chuan’s good-quality products and services. Seeing the demand, Hon Chuan was also glad to enter these markets. By following its customers’ footsteps, Hon Chuan expanded its business into mainland China and then Southeast Asia. Tsao considered long-term, win–win alliances with customers as the road to success. He found that even beverage giants such as Coca-Cola were concerned about costs due to the tough competition in the beverage market. Thus, Tsao developed the “in-house coalition production model” (Exhibit 8) to help customers cut costs. Under the model, Hon Chuan built production lines in customers’ factories. Later, Tsao developed an updated version of the in-house model, which could take care of the whole production process for customers. Take bottled beverages as an example. After installing bottle-blowing facilities in customers’ factories and connecting them to customers’ filling machines, Hon Chuan could produce bottles, fill them with beverages, attach labels to them and then pack the bottled beverages into boxes in the customers’ factories. Hon Chuan provided personnel, technology, equipment, packaging materials and production management. Customers did not need to invest in any of these; they only needed to provide space. The in-house model had a number of advantages: � operating the whole production process in the same place to
  • 22. save on transportation, storage and supply management; � keeping the supply of packaging materials efficient and uniform; � increasing productivity and reducing the defect rate; � ensuring quality, sanitation and safety; � enabling the use of lightweight PET bottles to reduce spending on raw materials and recycling; and � reducing customers’ investment risk. According to Tsao: The in-house model is based on an extremely high level of trust. The customers hand over the production process to us because they trust us. You know, the beverage will be sold to consumers directly. On the other side, we put million-dollar equipment in customers’ places. If we do not trust them, that will not work. Hence, the cooperation is very intimate. We sign contracts as long as 10 years with customers under the in-house model. It is very difficult for competitors to break in. The model helps us grow stably and guarantees us a certain level of profit margin. VOL. 8 NO. 1 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3 D
  • 24. be r 20 18 ( PT ) Using the in-house model, Tsao servitised the manufacturing business. This was considered to be the company’s key strategy and at the core of its competitiveness. The in-house model had been applied to more customers. About a half of Hon Chuan’s factories operated under this model. In-house factories usually cost NT$100-200m (approximately US$3.2-6.4m) for producing packaging materials or NT700-800 million (approximately US$22.4-25.6m) for beverage filling, approximately half of a normal factory. Due to high automation, the in-house factories only needed very few employees: 4-8 in Taiwan, 10-40 in mainland China and 10-30 in Southeast Asia, depending on how many production lines a factory had. Even in its normal factories, the employee numbers were low compared to other manufacturing companies. Its 41 factories had only 4,491 employees as of June 2016. Entering mainland China
  • 25. Despite the fact that Hon Chuan was an industry leader in Taiwan, Tsao had never felt complacent. Having a population of only 23 million people, Taiwan’s market was small. However, mainland China had a huge population, over 50 times that of Taiwan’s. Like many other Taiwanese companies, Hon Chuan went to mainland China to seek a much bigger market. In 1993, it established its first factory in mainland China to produce caps and labels for customers, such as Coca-Cola and Pepsi. In the 2000s, as China’s beverage market grew quickly, Hon Chuan built seven more factories. The Hon Chuan (China) Holdings Co Ltd. was launched in 2003 to manage its business in mainland China. After 2010, Hon Chuan built nine more factories to further expand its business in mainland China. Although competition was fierce, Hon Chuan earned a place among the top three manufacturers in mainland China. Nevertheless, Tsao still felt that there was a sword of Damocles hanging over his head – as an OEM company, Hon Chuan relied heavily on its customers just like all other OEM companies do. In 2012, Tsao’s concerns were realised when Hon Chuan lost its biggest customer, Uni-President Enterprises Corporation. Uni-President was the largest food and beverage company in Taiwan. It entered mainland China in 1992 and became a key player there. As Uni-President’s supplier, Hon Chuan had also benefitted a lot from the expansion of Uni-President’s business. In total, 40 per cent of the
  • 26. company’s sales turnovers in mainland China had been from Uni-President. Moreover, Hon Chuan’s in-house model was first launched with Uni-President in Taiwan and then applied to more customers. However, Uni-President reorganised its business in 2012: Ton Yi Industrial Corp, its manufacturing subsidiary in mainland China, launched a division to produce packaging materials and perform bottling. Therefore, Uni-President gradually cut orders from Hon Chuan, which pushed the company into a three-year slump from 2012 to 2014 and a loss of NT$5bn (approximately US$160m) in mainland China. As a result, Tsao changed his strategy: We can’t depend solely on Uni-President forever – that was a valuable lesson I learned. After that, we adjusted our strategy to spread orders to more customers. We gained more big customers, like Master Kong[2], France’s Danone, China Resources C’estbon Beverage, and China’s Jiaduobao, so that any changes to a single customer won’t cause us a fatal blow. Hon Chuan had since won long-term contracts from these big customers. The contracts with the top 10 biggest customers were all over three years long, whereas the contracts with the key customers such as Master Kong[3], Jiaduobao and Wanglaoji were 10 years or even longer. Tsao also kept his eyes on market trends to choose customers.
  • 27. He found that bottled water was one of the fastest-growing goods in mainland China, which had the largest market of bottled water in the world. To take advantage of this opportunity, Hon Chuan PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 1 2018 D ow nl oa de d by M on as h U ni ve rs ity A t 2
  • 28. 1: 15 0 4 N ov em be r 20 18 ( PT ) took on a subcontract from C’estbon, which was one of China’s top three brands of bottled water. For this, Tsao invested in four production lines in 2015. The traditional functional beverage was another fast-growing product in China. The key players were mainly local companies, such as Jiaduobao and Wanglaoji. Therefore, Hon Chuan cooperated with Jiaduobao to build in-house production lines, providing plastic caps, labels, PET bottles and bottling services.
  • 29. This strategy helped Hon Chuan turn a slump into growth, which was soon expected to reach the turnover milestone of NT$20bn (approximately US$640m). However, Tsao believed that the company had to take hold of its own destiny by upgrading to an OBM and developing its own brands. Although mainland China was a huge market, the competition in the beverage industry was very tough. International brands, such as Coca-Cola and Pepsi, had all come to compete for the market. Taiwanese brands, such as Uni-President and Master Kong, had invested heavily in mainland China. Some of the local brands, such as Wahaha, Jiaduobao and C’estbon, were strong players. All of this made it difficult for Hon Chuan to gain a foothold. Furthermore, these brands were Hon Chuan’s important customers. If Hon Chuan were to become their competitor in the beverage industry, they might abandon it. Then Hon Chuan might lose its original manufacturing business. Therefore, Tsao wanted to seek a new, smaller market that the big customers would not care too much for and in which the competition would not be so strong. Hon Chuan also needed a new market in which to expand its manufacturing business. Its brand customer, Uni-President, had expanded into Hon Chuan’s manufacturing area and quickly surpassed it. The largest manufacturer was a local company, Zijiang. These top three together shared 60 per cent of the market in mainland China, with half of their share
  • 30. held by Zijiang. Expansion in Southeast Asia At the beginning of the twenty-first century, Hon Chuan sought a market other than mainland China. At the time, one of its key customers, Uni- President, was also looking for a professional beverage packaging partner in Thailand. Before then, all of Hon Chuan’s products sold in Thailand and in other Southeast Asian countries, exported from Taiwan. If Hon Chuan had a manufacturing base in the region, Tsao thought that it would be much closer to the customers. Tsao considered Uni-President’s invitation to be a good opportunity to enter Southeast Asia. The two companies had worked very well together for years in Taiwan and mainland China. Hence, Hon Chuan expanded into Thailand, taking full control of the factory’s investment and production lines for Uni-President. Its first factory there was established in 2005, producing beverage labels and PET preforms. One year later, Hon Chuan expanded into Indonesia by cooperating with a local company under the in-house model. Then, in 2007, Hon Chuan cooperated with a company in Vietnam to set up in-house production lines for PET bottles. After entering Southeast Asia, Tsao realised how big the market was. He thought it was necessary to build Hon Chuan’s own factories there to increase production. However, the company had just established the above three in-house factories in the first five years.
  • 31. Political stability was one of the reasons. For example, the political situation in Myanmar had been unstable during the early years of Hon Chuan’s expansion into Southeast Asia. Hence, the products sold to Myanmar were transported from factories in Thailand, Taiwan, mainland China and Indonesia until the situation changed in 2012 and the political situation stabilised. Coca-Cola, Hon Chuan’s key customer, also began production in Myanmar at that time. In addition, Pepsi and a local company also demanded Hon Chuan’s products for their beverage businesses in Myanmar. Following in its customers’ footsteps, Hon Chuan confirmed its decision to enter the country. The construction of its first factory began in VOL. 8 NO. 1 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5 D ow nl oa de d by M on as h
  • 32. U ni ve rs ity A t 2 1: 15 0 4 N ov em be r 20 18 ( PT ) 2012. The factory began operations in 2015. Later, in 2016, the USA ended its economic
  • 33. sanctions against Myanmar and resumed special trade preferences with the country. Tsao sensed that economic prospects would improve. Therefore, Hon Chuan expanded its existing factory and increased its investment in a second factory in Myanmar. Thus, it strengthened its production capacity to serve the local market. The unstable political situation in Thailand was also challenging. The country was controlled by the military. Coups would occur from time to time. Fortunately, the coups did not have a huge effect on Hon Chuan. Its factories were all located in the industrial area outside of the capital, Bangkok. Although there were clashes and martial law was imposed in Bangkok, neither traffic nor transportation in the industrial area was restricted. Hon Chuan’s factories could operate and shipments were regular. After 2010, Hon Chuan started to expand into Southeast Asia on a large scale. The political situation had improved and economic growth had been stable. Members of the Association of Southeast Asian Nations (ASEAN) had gradually lowered their import duties to zero. Moreover, losing Uni-President in mainland China also forced Hon Chuan to pay more attention to Southeast Asia. Hence, Hon Chuan increased investment by establishing more factories or in-house production lines in its existing bases: three more in Thailand (in 2010, 2011 and 2015), three more in Indonesia (2010, May 2014 and September 2014) and one more in Vietnam (2011). Moreover, the business was also expanded into more countries in
  • 34. the region, such as Malaysia (2011 and 2013), Myanmar (2014 and 2016) and Cambodia (2015). Hon Chuan built as many as 15 factories (six under the in-house model) in six Southeast Asian countries. The factory network enabled Hon Chuan to coordinate resources, orders and manufacturing among different factories in the region when some of them were fully loaded or were affected by accidents such as flooding. This was one of the reasons why Hon Chuan increased investment in the region. Tsao predicted that Southeast Asia would contribute to up to 40 per cent of the company’s sales turnover, which would equal the contribution of mainland China. Cambodia was Hon Chuan’s newest base in Southeast Asia. Tsao met a Taiwanese business owner who had a food company in Cambodia. The company had experience producing self-owned brand products and had accumulated channels in the local market. Tsao thought it was the right time to transform Hon Chuan’s business structure by upgrading to an OBM. Hence, in 2015, Hon Chuan launched its first self-owned beverage brand, “Honly” (Exhibit 9). Cooperating with that company, Hon Chuan invested US$8.82m, holding 60 per cent of the shares in the joint venture[4]. Hon Chuan provided the technology and took charge of operations and management, whereas its partner focused on marketing channels. The first product, “Pobo Yogurt”, went on sale in August 2016. There were three flavours: original, grape and strawberry. The retail price was set at
  • 35. KHR2000 (approximately US$0.5) per bottle, the same as that of Coca-Cola and double of bottled water. The company ran marketing campaigns all year long, including television adverts, sales promotions (KHR3000 for two bottles), street/market promotions, rewards printed inside bottle caps (to redeem free drinks, cash, cell phones, computers and motorcycles etc.), and community activities. Honly’s banners and beach umbrellas were seen everywhere, such as small vendors, retail stores, supermarkets and markets in both urban and rural regions. Later, the company introduced more products, such as refreshing drinks and fruit juices. As the weather in Southeast Asia was hot all year-round, the demand for beverages remained strong[5]. Tsao predicted that, after promotion and development in the first year, the sales turnover might reach NT$200-300m (approximately US$6.4-9.6m) in the second year and NT$500m (approximately US$16m) in the fifth year. Hon Chuan also planned to add more flavours and introduce more products such as honey lemon green tea and vitamin water in the coming months. Different products, flavours and packages would target different clusters of consumers. Moreover, Tsao was thinking about expanding marketing channels and branding in other countries. PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 1 2018 D ow
  • 37. r 20 18 ( PT ) Tsao explained his strategy: We chose Southeast Asia rather than China to launch our self- owned brand. Mainland China of course has the largest population of 1.3 billion and will be the world’s largest beverage market. However, the competition is too fierce to us. Western leading brands have invested heavily there. Besides, local brands have also occupied significant shares. We are not able to compete with them. Moreover, they are our current customers and some are key customers, indeed. We don’t want to displease them by entering the business as a rival, which may influence our current core business in packaging and filling. So, we decided to start in a smaller market, like Southeast Asia. The competition is less intense. Large companies may have less interest in such small markets. And the local brands haven’t maturely developed yet. I think this would be our chance. Nevertheless, Tsao’s ambition was more than that. He then turned his gaze towards Africa.
  • 38. From Asia to Africa Africa (Exhibit 10) had been regarded as the last undeveloped continent but had recently been recognised as the newest emerging market with great potential. Economic growth in Africa had been rapid in the past decade. The average GDP growth in Africa was 5.4 per cent between 2000 and 2010. In that period, six of the ten fastest-growing economies in the world were from Africa. This growth slowed down after 2011, but it was still relatively high among all continents of the world. In 2016, some African countries made it to the top of the list of the fastest-developing economies (Exhibit 11). The continent’s population was growing fast, suggesting a large labour force. … Assignment 4 Submission Instruction Important : •Assignment 4 is based on a case study which will be given on Tuesday 9 June. •Just like assignment 2, you are expected to read the case study. •You will be given 3 questions from the case study covering lecture 2, 3, 7, 8 and 10. Just focus on the following lectures. Answer all three questions. • The submission is just like any other assignment. •The format is as follows: - font size : 12 - double spacing (1.5)
  • 39. - use times new roman. - you can use subheadings if you want. - use essay format. - no point form. - In text citations are not required. References are not required. Submission •You are will be given 6 hours to complete the 3 questions. Poetry Explication -3 pages no works cited page required. Poets are often stereotyped as eccentric or hard to understand. Often their messages seem buried within the lines of their work, veiled by obscure diction or syntax. It is no wonder, then,
  • 40. that when writing about poetry it is called explication rather than analysis. The first and often hardest thing to do when explicating a poem is to develop a theme (see p 841 in Lit). I want you in the same city with your theme, not necessarily in the same ballpark. Read both poetry selections and ask your self the questions on p 763 in Lit. When you develop your theme (meaning) remember to connect it to one of three things: Do not give me a “one word” theme such as, “The theme of Ode on a Grecian Urn is immortality.” Immediately, I will ask, “so what?” What about immortality relates to human nature, society, or culture? Do not develop a “summary theme” such as, “Meditations on the South Valley is about someone living in a small town where there is a lot of gossip.” Once you have developed a theme, decide what three elements of poetry the poet uses to advance that theme. These elements can be found in Chapter 13 in Lit., and here are the main elements I would like you to use: eaker and Tone
  • 41. Your paper will be written in the five paragraph essay format (refer to the “Five Paragraph Essay” under “Course Documents.” Every specific support must include a direct quote from the poem. This will be your illustration or the I in PIE. The first paragraph should include all of the following and I do not mind if you use this example in your explication: In the poem insert poem title here (italicize or place within quotation marks – not both) poet’s full name uses element of poetry (point A), element of poetry (point B), and element of poetry (point C) to advance the theme of insert your theme here. Refer to the sample student paper I have posted under “Course Documents.” Although you do not need a works cited page, you do need to cite the line(s) of poetry you use. Here are a few pointers on MLA and poetry citations: mple: Baca writes, “ love the wind” (ln 1). [the ln indicates a single line. Notice how the introduction is in present tense. The entire paper should be written that way] nes are cited this way: Baca writes, “I love the
  • 42. wind / when it blows through my barrio” (lns 1-2). [a forward slash / indicates a line break. punctuation: Baca writes: I love the wind when it blows through my barrio. It hisses its snake love down calles de polvo, and cracks egg-shell skins of abandoned homes. (lns 1-6) (If you use a block quote, format with a hanging indent two tab spaces from the left margin) The explanation portion of your specific supports or the E in PIE is where most students have the most difficulty. You make a point, give an illustration from the poem in the form of a direct quote, then offer an explanation, which often turns out to be nothing more than a summary of the quote. Just as you linked your theme to human nature, society, or culture, you should link your explanation the same way. Be sure the explanation is connected to your theme! Refer to the sample paper for an example of this. Good luck writing!