China market takes a disturbing dip
Article Abstract:
Foreign investments in China are not as profitable as projected, especially for U.S. firms, because of limited repatriation of revenues, higher-than-expected labor costs, and bureaucratic entanglements caused by China's commercial policies. Since Mao Zedong's death in 1976, 2,000 foreign-backed businesses have begun operating in China, but foreign investments declined during the first six months of 1986, due to the problems cited above. The Beijing government is addressing these concerns with little results. While new foreign investment is hurting, existing foreign firms in China, such as Coca Cola, Nike, and Jeep are asserting their presence. The growing tourist boom is spawning new hotels, including the Great Wall Sheraton, but government reforms and foreign patience will be needed for long-term commercial success. The foreign business investment climate in China is described, with an emphasis on realistic foreign coping strategies that may be implemented.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1986
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How ICL's turnaround led to its acquisition
Article Abstract:
Changes in International Computers Ltd (ICL) strategy between 1982 and 1984 are described, as well as the company's eventual acquisition by Standard Telephones and Cables Ltd (STC). ICL encouraged third party sales of software for ICL computers as a way of increasing hardware sales, but results did not meet expectations. This led to a restructuring of management and reductions in overhead. Operating profits from ICL's operations in Europe, Australia, and South Africa began to improve in 1984. ICL agreed to a share offer from STC in Aug 1984, in order to take advantage of the growing connection between computers and telecommunications.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1986
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