Part A
Q1 Answer
China is a strategic market for any organization that needs to venture in the nation. China is politically stable in that it is not subject to civil wars and terrorism. This makes China environment to be conducive for a business venture. Demographically, the large population of the nation also provides a bigger market for investments. Furthermore, the nation is one of the fastest growing economies in the world making it stable economically something which attracts investors. Moreover, China is a nation where technology is growing at a very fast rate. It has many companies that focus on providing technological services in the world. An outstanding example of China’s venture in technology services is the way the nation makes smartphones, high technology computers, and vehicles (Hoenig n.p).
China presents organizations with various opportunities that they need to explore. First, the nation has a ready market that following its large population. The large population indicates enough and ready market that investors need to explore. Delivering of quality and consumer preferences is key in venturing the new market for the investors. Although the nation has a growing technology, there are opportunities for technological investors such as U.S. Furthermore, the nation has a skilled and knowledgeable pool of workers that investors need to take advantage of to enhance their development.
On the other hand, China has various barriers to entry that threaten investors from investing in the nation. The legal framework in China is a barrier to entering the China market. With many investors seeking to venture in China, the regulations and approval remain unpredictable. Also, norms and the culture of China people remain complicated thus affecting investment in the area. Organizations need to adhere with the norms and culture of Chinese citizens to survive in the market. Finally, lack of transparency within various organs of the nation is a big threat to entry for investors. Such evil affects the trustworthy of business operations hence scaring investors (Hoenig n.p).
Q2 Answer
Sun Life Financial has the internal capability required to exploit the opportunities and entry barriers in China. The company has a strong management and a pool of professionals who can make proper strategies to exploit the new market in China. Besides, its joint venture with Everbright Group strengthens the company’s mission to exploit all the opportunities and overcome its threats.
Q3 Answer
There are various pros and cons of entering China. Investing in China is beneficial to companies because it has a ready market and skilled labor. China has a large population that presents a ready market and labor for investor companies. Besides, China is a politically stable company due to lack of civil wars and minimal terrorist attacks. Furthermore, investing in China is important for companies that want to take advantage of high technology.
On the other hand, China has various cons that affect investment. For instance, the nation has a complicated culture that needs investors to adhere to their norms. Also, the nation has length legal framework and approval that hinder many investors from venturing into the market. Furthermore, most of its officials are corrupt and lack transparency which creates much threat to investors (Hoenig n.p).
Part B
Q1 Answer
It was a good time for Sun Life Financial to pursue the China market in to take advantage of the existing opportunities. Also, the support from Everbright Group as a partner made it the right time for the company due to the available strategic fit and an opportunity to receive guide and direction.
Q2 Answer
Sun Life Financial entered into a joint venture with Everbright Group because it is a successful company that they fit strategically. Everbright Group is in the same business with Sun Life and thus has enough knowledge about the China market. Sun Life required gaining that information in pursuing the market.
Q3 Answer
If I were Ohannessian, I would choose Shanghai to operate the business. Shanghai is economically and politically sound thus providing a conducive environment for business. Besides, it has a big population to offer enough market for the company. Choosing the city required a research on features of the cities in China then picking the best as per my opinion.
Works Cited
Hoenig, Jay. “Managing Business Risks.” China Business Review, 2006, Nov 1. http://www.chinabusinessreview.com/managing-business-risks/
