Lulu PLC Clothing Manufacturing In China Essay Example | Topics and Well Written Essays - 1750 words

Lulu PLC Clothing Manufacturing In China - Essay Example Manufacturing in China Rapid economic growth and industrial development has been witnessed in China in the recent past. China is ranked third from the U.S and Germany in the rankings of world’s trading nations. Business organizations intending to exploit business opportunities in China has a mandatory task to understand the prevailing business environment as this may have profound consequences in business development. Cultural and political environment in particular greatly affect any business performance. The government of the People’s Republic of China has over time developed a market economy in the system, which is dominated by socialist characteristics. Socialism in China advocate for collective or state ownership of economic resources and their distribution. Equal opportunities to all characterize the mode of production. This poses a challenge to Lulu Company in that it may take time before adjusting to the common ownership and sharing of production resources. There are two major market trends that are emerging in China’s market that are likely to affect Lulu company’s operations. These are regional integration and world multi-polarization. The NDRC has a plan that is meant to better manage her Foreign Direct Investment in the economy. This plan monitors the national security investment as well as foreign investment. From the policies sighted in the plan, China is advised to give room to foreign investors to own domestic enterprises. This, on the other hand, would work as a boost to Lulu PLC Company’s plan to establish a manufacturing plant. ... This plan monitors the national security investment as well as foreign investment. From the policies sighted in the plan, China is advised to give room to foreign investors to own domestic enterprises. This, on the other hand, would work as a boost to Lulu PLC Company’s plan to establish a manufacturing plant. China’s government has been on the forefront in providing equal treatment to both local and foreign countries interested in engaging in business activities with her. This is equally an advantage to the company’s proposal (Chu, 2010, p.5). Hard work, moral uprightness, social life structures and family institution are some of the basic cultural dimensions a company must face whenever she intends to venture into China for business. As earlier noted in the political governance, social collectivism is a major aspect in the country. This means that our company must be in a position to face the aspect of social cooperation. This must be put in consideration in th e decisions regarding the kind of products to develop for such groups as the family, schools and also on the management control systems to be adopted. The company must design management control policies most suited in collective working as opposed to individual units (Sebenius and Qian, 2008, p.5). Lastly, the clothing industry has been invaded by the advancement of ICT. China as a country has not been left aside. Accesses of niche markets and the development of higher value design and logistics are the main emerging trends in the industry and thus any competitive company must consider this. Lulu PLC Company must thus consider technological advancement in her move to establish the manufacturing facility in China (McNamara, 2008). Setting Up a Manufacturing