1. AQA BUSS4 Section A Briefing - China
June 2014
BUSS4 China – Key Themes

2. 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

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

4. Strategy is
CHOICE

5. 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?

6. A chance to use two classic models to explore China strategy

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

8. 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?

9. 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