1,742
10
Essay, 2 pages (300 words)

Xtech joint venture in china

Extrusion Technology Inc (ExTech) is a manufacturing company that focuses its energy on the production of physical and mechanical structures used in electronic components especially for communication devices. With time, the company has grown to supersede the domestic market requirements. Consequently, the top administration has contemplated expanding the company to exploit the overseas market. This paper will discuss how the company’s business models and domestic partnerships are going to affect the company’s decision to commit to a joint venture (JV hereafter) in China. Additionally, it will consider the pros and cons for Hess, the CEO as he decided the step that Xtech will take. In its JV options, Hesse had up to five options to choose. The first was forming a partnership with Ideal Jacobs, or Nextron, or Southco, or to become a WOFE (Wholly Owned Foreign Enterprise), or to delay the whole process up to a later date.

Hesse faced several challenges in trying to determine Xtech’s next step. The most suitable partner Allied Technologies was not willing to set up a JV with Xtech in china, but preferred operating from Singapore. Consequently, Hesse had to consider his other options. First SouthCo proved to be an excellent option, but due to its booming Chinese market, they would not be able to facilitate Xtech’s requirements concurrently with theirs. Next was Nextron, based in Taiwan. However, the company has aggressive sales people with an attitude that left Hesse unsure of Nextron’s suitability as a joint partner. Ideal Jacobs provided Hesse with an option that was suitable to Xtech’s interest in China. WOFE also seemed as a highly tenable option. However, it is risky due to China’s shoddy business reputation. New ventures in China get stifled by extremely complex bureaucratic processes. In making the final decision, Hesse has to consider the company that will best serve Xtech’s interest in exploiting the new market. Currently, Ideal Jacobs seems to be the most suited to form a joint venture with Xtech.

Thank's for Your Vote!
Xtech joint venture in china. Page 1
Xtech joint venture in china. Page 2
Xtech joint venture in china. Page 3

This work, titled "Xtech joint venture in china" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2021) 'Xtech joint venture in china'. 23 December.

Reference

AssignBuster. (2021, December 23). Xtech joint venture in china. Retrieved from https://assignbuster.com/xtech-joint-venture-in-china/

References

AssignBuster. 2021. "Xtech joint venture in china." December 23, 2021. https://assignbuster.com/xtech-joint-venture-in-china/.

1. AssignBuster. "Xtech joint venture in china." December 23, 2021. https://assignbuster.com/xtech-joint-venture-in-china/.


Bibliography


AssignBuster. "Xtech joint venture in china." December 23, 2021. https://assignbuster.com/xtech-joint-venture-in-china/.

Work Cited

"Xtech joint venture in china." AssignBuster, 23 Dec. 2021, assignbuster.com/xtech-joint-venture-in-china/.

Get in Touch

Please, let us know if you have any ideas on improving Xtech joint venture in china, or our service. We will be happy to hear what you think: [email protected]