Executive summary3Introduction4Purpose of Report5The Company6Political status6Economic status7Sociocultural status11Technological status13Availability of high technology13Availability of raw material14The Chinese Market15The Chinese Competitors16The Other Asian Markets17Japan18Four tigers19South Korea19Hong Kong, Singapore and Taiwan19Other developing countries20Chinese Infrastructure21Infrastructure in Shang Hai22Revenues and costs23The production equipment23The parts23The cost of revenues24Sales and marketing24Administration and general25Taxes25Market growth25Calculation of profit26Revenues26Research and development27Conclusion28References29Appendix 131Appendix 232Executive summaryAsia has emerged as a strong economic region in recent years. Several countries in Asia have showed their strong economic development potential to the world and as a big multinational company, establishing a new production facility in Asia could prove to be a good choice.
There are more than 50 countries in Asia, of varying degrees of attractiveness. The right location of a new facility is therefore vital to the firm. Through reviewing several aspects, such as political, economical, socio-cultural and technological factors and an estimate of the market, most countries were eliminated as either target markets or suitable locations for the new production facility.
India and China at first glance seemed like good choices for such a facility finally however it was narrowed down to one country, China. This will be done from examining the political, economical, socio-cultural and technological aspects more thoroughly. Furthermore the Chinese market and the Chinese infrastructure were analyzed, in order to show whether the company's demands can be successfully met.
China is, by the sheer nature of its size, an enormous place, and it is therefore important to find a good location within China to locate the production facility. The different parts of China vary a lot, especially when considering issues such as policies towards foreign direct investment, education and other such factors that could have a great significance on the success of the company. With these things in mind the city Shang Hai was chosen, as it...