To allow the Chinese MNE to draw up its periodic financial statement, every three months the administrative staff of the Italian firm would complete a financial statement7, as well as a stock flow inventory report, a credit and debit analysis report and a cash flow statement. Such distinctive knowledge was considered by the Chinese investor to be a strategic resource, offering new high-quality products and penetrating new segments of the market by improving its own portfolio range , as well as increasing the quality of its traditional products typically scooters. The new multinationals seek to reduce production costs and overcome commercial barriers. From the Chinese perspective, the Go Global policy should encourage, through appropriate instruments training, first of all , the growth of managerial skills of the persons who are in charge to manage the post acquisition phase. However, other research proposes a strategic intent perspective SIP to explain the foreign acquisitions by Chinese firms. But such issues are fundamental to be able to compete in the Western motorbike markets. The interviews were not taped and anonymity was preserved.
As a result, there is a reduced propensity to invest in projects involving intangible assets, i. As revealed by the Whitley model, the transferability of practices and routines during the internationalisation process is discouraged due to varied labour-market institutions and differing state structures, policies and financial systems. The acquired company is a small Italian firm which designs and produces motorcycles in the heavy segment of the market, i. Skip to main content. Future research focusing on ethnographies of Chinese corporations can greatly help move the field forward on the inner working and motivations of Chinese international acquisitions. Organizing across Institutional and National Divides, pp.
Financial statements and balance sheets of the acquired company At the intra-firm level, cultural distances and differences in terms of business priorities may explain the Chinese perceived lack of importance of investments in the image of the firm, in market visibility, and in customer care. The Italian technical director who was appointed vice managing director by the Chinese investors left the company in due to his opposition to the way the Chinese were running the firm Miller, Companies may face many challenges like cultural, language and economical difference.
Even when such absorptive capacities are developed, the more fundamental competencies, i. The acquired company is a small Italian firm which designs and produces motorcycles in the heavy segment of the market, i.
There are many reasons for companies to enter into the global market, for example the local market have reached the point of saturation or there are no more opportunities for growth. Institutional and group orientation-collectivism is fundamental bfnelli China due to the importance of a high sense of belonging. For the Chinese employees in the Italian factory, this was already the case. Investor-Edge is not entitled benelli veto or interfere in the case of such procedures by the outsourced case to the articles, documents or reports, as the case may be.
It is one of the benelll Chinese companies that manufactures and markets motorcycles ranging from 50 cc to cc and engine parts. As latecomers, Chinese MNEs use acquisitions to enable rapid access to strategic studj so as to face global competitors Deng, Specific attention is paid to integration issues related to human resources and management practices.
Benelli and qj case study
This article contributes to the existing knowledge on the difficulties and critical aspects of the post-acquisition phase of an emerging market multinational.
The Case Centre is a not-for-profit company caase by guarantee, registered in England No and entered in the Register of Charities No A critical issue is the effective anv of Chinese enterprises operating abroad to absorb new technology, to use new brands, to invest in marketing and intangible assets, and, above all, to become accustomed to Western standards in terms of management practices and corporate governance regulations.
However, other research proposes a strategic intent perspective SIP to explain the foreign acquisitions by Chinese firms. Ilan Alon is a George D. Qianjiang Group was a Chinese firm and when it decided to enter into the European and North American market, many threats cwse there like cultural difference, etc. Increasingly, Chinese companies are moving beyond the initial search for sources of energy and raw materials Lawrence, This benelli technique requires one record per patient, caes columns representing the variables in the model.
But such issues are fundamental to be able to compete in the Western motorbike markets.
The findings suggest that while superficial product-portfolio and cost benefits can accrue due to the acquisition, cultural and administrative differences and lack of synergies can prevent the acquirer from fully integrating the intangible assets, particularly human resource talent, of the acquired firm. The framework will be used as a guideline in the case study that follows. What Drives Chinese Multinationals to Qn
Benelli and qj case study
Product details Share this page: As a result, there is a reduced propensity to invest in projects involving intangible stuudy, i. It was established as a family firm ininitially offering automobile and motorcycle repairs, as well as the manufacture of spare parts.
Production also covers a wide range of other machinery and electrical products. Sauvant,; Wilson and Purushothaman, Figure 1 Key aspects of the post-acquisition phase see online version for colours There are three specific mechanisms to coordinate human resources Galbraith, See Hirt and Orr Even the return to competitive racing planned by the Chinese to re-launch the brand was delayed.
Emerging Economies and the Transformation of International Business: Table 1 reports on the main economic and financial information of the Italian firm pre- and post-acquisition. Specific mechanisms are activated to coordinate human resources and to develop trust and relational capital. No direct interviews were held with anyone from the Chinese parent company. Qianjiang Group had the largest motorcycle manufacturing plant in the Asia and it was equipped with advance facilities See Exhibit 1.