AQA BUSS4 Section A Briefing - China June 2014 BUSS4 China – Key Themes www.tutor2u.net

Rewards Risks Opportunities Threats Success Failure Advantages The key words in the research bullets indicate this theme is all about strategic choice! Rewards Risks Opportunities Threats Success Failure Advantages Disadvantages

A Danger of Getting Lost in China (…and in the Research Theme)

Strategy is CHOICE

Strategy always boils down to 2 questions Target markets Customer needs Size of the prize Where to PLAY? Value proposition that distinguishes a business in eyes of target customers Capabilities that enable delivery of proposition How to WIN?

A chance to use two classic models to explore China strategy

Porter’s model addresses the two strategy questions! Where to Play? How to Win?

Underlying Issues in the China Research Theme How important is China to a business looking for growth? Can the potential rewards justify the substantial risks? What are the alternatives if a business needs profitable growth? Are other emerging markets a better bet? Is it possible to compete effectively and fairly in China? Is it too late to succeed in China, or can you learn from those who tried and failed?

What businesses outside China need to consider when looking to trade with or do business with China Importance of international expansion as a source of growth Short v long-term investment & planning Evaluating the risks & rewards when short of knowledge Which method of market entry is consistent with the corporate objectives and attitude to risk? Rapid change in a hostile external environment