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Harvard Business School Case Study: Parker's Biscuits
China is quickly becoming just as much of a consumer as it is a major international manufacturer. This has led many foreign companies to begin working in China, not just to manufacture and export goods, but to sell to Chinese consumers as well. The food industry had slowly begun bringing in foreign snacks and goods to serve this growing Chinese consumer base, showing that there was a great opportunity within China. Parker's Biscuits was looking to expand its empire by possibly entering into a joint venture with China to manufacture and produce their cookies and biscuits. Although the company does need to build some of its core competencies to succeed, it already has experience working with joint ventures in Asia and therefore has a competitive advantage over other foreign companies with less knowledge and resources in terms of working within the Asian nation.
There are a number of capabilities which Parker's...
The Chinese government had long been encouraging foreign investment into joint ventures in the region. Thus, the environment was already primed for their entry, the company just needed to work out an investment and management strategy with the right local business to begin a joint venture with. Thus, the company needs to expand its research and development in China in order to be able to appropriately judge and forecast potential success with particular business partners. Part of this process is really getting engaged within the Chinese business environment, which would also help establish stronger relationships with potential business partners (Kanter 1994). The case study shows that there is already heavy competition in the region, which can make entry more difficult. Establishing strong collaborative ties with Chinese companies already working in the region will help…
References
Kanter, Rosabeth Moss. (1994). Collaborative advantage. Harvard Business Review.
Parker's Biscuits, Inc.: Venturing into China. (1997). Harvard Business School.
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