Discussion 1

Discussion 1

Before you post your responses this week, think about the following: There has been much in this text so far about China, and we are finally discussing! As you think about what you know of China, also think about Chapter 15 and your reading this week: are there hidden costs in foreign locations?

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Read the Management Focus entitled Philips Investments in China page 410 in Hill & Hult

In an initial post by Day 4, choose and answer ONE question (the goal is that the next student will choose the next unanswered question, and so on; it is okay if choice of questions repeat…):

QUESTION ONE: What makes China such an attractive production location for Philips? In other words, what are the benefits? Are there other locations that share the same characteristics?

QUESTION TWO: What are the risks associated with a heavy concentration of manufacturing assets in China?

QUESTION THREE: What strategies might Philips adopt to maximize the benefits and mitigate the risks associated with moving so much product?

QUESTION FOUR: Philips wants to eventually turn China into a global supply base from which its products will be exported around the world.  Consider the advantages and disadvantages of this strategy.