Market Entry in China (5 ECTS)

Learning outcomes

International Business, 3rd year Profiling Competences, part of Doing Business in China module In this segment, we’ll discuss about how companies from foreign countries can enter the Chinese market; the various factors they need to consider if they enter into a collaborative arrangement, and some of the tactical steps they need to take in the early stages of their Chinese operations. There are four ways to enter the Chinese market: viz; exporting to China, licensing, including franchising, Equity joint ventures, Wholly owned foreign enterprises (WOFEs or Woofies). We will discuss the four ways to enter the Chinese market in detail.

Content

Market Entry in China is the second part course of the Doing Business in China Module. It is highly recommended that as a learner you complete all the three parts, so that you can develop a comprehensive understanding and gain a wealth of insight and practical advice on doing business in China and be prepared to successfully navigate the country’s unique economic systems and communication and cultural styles. It is highly recommended that as a learner you complete all the three parts, so that you can develop a comprehensive understanding and gain a wealth of insight and practical advice on doing business in China and be prepared to successfully navigate the country’s unique economic systems and communication and cultural styles. Thank you. Part 1. Business Environment in China (5 credits) Part 2: Market Entry in China (5 credits) Part 3: China’s Foreign Trade System (5 credits)

Teaching methods

Variety of instructional tools would be utilized. Lectures will be delivered using PowerPoint presentations and would be supplemented by case studies, videos and articles when necessary. You must keep a track of all the activities on the course. Teaching and learning methods • Class lectures, lecture notes, and case study are designed to achieve the course objectives. • You should read the assigned chapters before class, complete assignments on time, participate in class and do whatever it takes for you to grasp this material. Ask questions. Ask lots of questions. • You are responsible for all material covered in the class. • Please communicate any concerns or issues as soon as either in class or by Email. The web page is a primary communication vehicle. Lecture notes will be available before each class. It will contain homework assignments, study guides, and important instructions. The teaching and learning methods to support the aforementioned strategy are woven into: • Lectures • Group work • Presentations • Examination

Location and time

01.08.2024 - 31.07.2025, 24X7 non-stop implementation. 1. There will be no online lectures. The lecture recordings are available on HAMK Learn Moodle course page. 2. This is a 24X7 self-paced module. This means that you are welcome to start and finish the courses as per as your own convenience within the time frame.

Learning materials and recommended literature

Readings will be handed out on HAMK Learn Moodle. Selected Texts/Journals: Required Purchase: None Recommended Readings 1. Stephen Green, China's Stockmarket: A Guide to its Progress, Players and Prospects 2. Carl E. Walter, Fraser J. T. Howie, Privatizing China: The Stock Markets and their Role in Corporate Reform 3. Randall Peerenboom, China's Long March Toward Rule of Law 4. Yasheng Huang, FDI in China: An Asian Perspective 5. Kenneth Lieberthal, Governing China 6. Jung Chang, Wild Swans: Three Daughters of China 7. Barry Naughton, Growing Out of the Plan: Chinese Economic Reform, 1978-1993 8. Nicholas R. Lardy, China's Unfinished Economic Revolution 9. Joe Studwell, The China Dream: The Quest for the Last Great Untapped Market on Earth 10. Andrew J. Nathan, Bruce Gilley, China's New Rulers: The Secret Files 11. Hill Gates, China's Motor: A Thousand Years of Petty Capitalism 12. Tim Crissold, Mr. China. 13. John Bryan Starr, Understanding China: A Guide to China's Economy, History, and Political Culture 14. James McGregor, One Billion Customers: Lessons from the Front Lines of Doing Business in China. 15. James Kynge, China Shakes the World: A Titan's Breakneck Rise and Troubled Future - and the Challenge for America Background Reading Students will be directed to specific academic journal articles during each lecture. Recommended Periodicals and Newspapers U.S. Department of State Countries – www.state.gov/countries CIA World FactBook – https://www.cia.gov/library/publications/the-world-factbook/index.html The Economist – www.economist.com The Financial Times – www.ft.com The New York Times – www.nytimes.com Wall Street Journal – www.wsj.com Recommended Academic Journals Harvard Business Review Strategic Management Journal

Alternative completion methods of implementation

RPL (Recognition of Prior Learning)

Internship and working life connections

STUDENTS WILL MAKE THEIR OWN CONNECTIONS TO THE COMPANIES IN THE CONTEXT OF THIS COURSE'S TOPIC AREAS

Exam dates and retake possibilities

Dates would be announced shortly

International connections

INTERNATIONAL COLLABORATION IS EMPHAZISED

Student workload

THIS 5 ECTS MODULE, WILL INCLUDE INDEPENDENT LEARNING, ASSIGNMENTS, PROJECT, CLASS DISCUSSIONS, AND IF POSSIBLE,COMPANY VISIT(S) This course explores doing business in the People's Republic of China. General themes of China's economic development will be examined, with emphasis on the opportunities and challenges faced by foreign investors and entrepreneurs in China. In this segment, we’ll discuss about how companies from foreign countries can enter the Chinese market; the various factors they need to consider if they enter into a collaborative arrangement, and some of the tactical steps they need to take in the early stages of their Chinese operations. In this segment, we’ll talk about how companies from Finland can enter the Chinese market; the various factors they need to consider if they enter into a collaborative arrangement, and some of the tactical steps they need to take in the early stages of their Chinese operations. There will be a final exam (group assessment) consisting of a power point presentation and submission of report.

Content scheduling

This Market Entry in China section is divided into the following 8 parts: 1. Understanding Chinese Consumers The price-sensitive but brand-conscious Chinese consumer reflects an important duality. Price wars occur on a regular basis. This is clearly hurting companies, but nobody can afford not to participate in a price war, as price is often the determining factor for Chinese consumers when making purchase decisions. Chinese consumers have become more informed and sophisticated now. Many Chinese travel overseas to buy branded products, as it is much cheaper than in China. Similarly, Chinese are now looking for subtler ways to signal their status by avoiding brands that have loud logos. China has changed. It’s no longer just a place for companies to outsource their production. The market is big, diverse, and has tremendous potential. Thus, “Made in China” is being replaced by “Made for China”. In order to really thrive in this market, foreign companies have to truly understand the needs and changing characteristics of Chinese consumers, and build quality products and services to meet these needs. This section will provide an insight into Chinese consumers, mainstream China and the emerging middle class, China’s luxury market trends and implications. We will also discuss how most Chinese consumers embrace thrift and the leading brands in China. 2. International Business and Competitiveness of Chinese Companies This section starts with the conceptual understanding of Business Internationalization theories and its implications. We then discuss about pursuing international business with China with examples of Chinese companies and increasing international competitiveness of Chinese industries. 3. Market Entry Modes and Sourcing in China This section looks at the various market entry modes in China, the success drivers for market entry and further discusses the most appropriate mode for entering the Chinese market. We also discuss the sourcing of contracts from China and the case study of a chocolate company from UK who have started their operations in China. 4. Establishing a presence and engaging in China This section establishing a presence and getting ready for engaging in China. We also discuss an example of DD study of a business license verification in China and understand the importance of red envelopes in China with an example. 5. Purchasing and selling in China This section discusses the various aspects of purchasing and selling in China. We have case studies to help you understand the different ways of purchasing and help you understand the market segmentation, the logistics and payment terms. 6. Market Research and Sales Strategies for China This section discussed the market research and sales strategies relevant for China and provides a glimpse on advertising in Asia. We have also included the Wechat advertising guide to supplement our readings as a value-added material. 7. Foreign Companies in China This section starts discusses the examples of foreign companies having their operations in China like Nestle, Adidas and Oreos and how they have adapted their products to suit the Chinese consumers. We have also included some advice from expert Professors in this area. 8. Learning Chinese language, Conversational (Optional section, not used for grading and assessments) (This section is optional and is offered through a self-learning mode with the help of podcasts.) This course is designed for those learners who have grasped at least 200 Chinese words and have mastered basic speaking skills. Oral comprehension will be refined as well as oral expression through the study of grammar and vocabulary employed in different situations. More new vocabulary as well as some more complex sentence structures are introduced. Emphasis is placed on conversational skills. Upon completion of the course, students are able to engage in daily conversations in areas of social and work-related topics with relative ease. The aims are for students to conduct intermediate integrated skills training of Chinese listening, speaking and teach certain knowledge of the language and culture so that students can use Chinese freely.

Assessment methods and criteria

Assessment: Part 2. Market Entry in China (5 credits) ES2. Market Entry Assignment, Group Assessment (100% weightage)

Evaluation scale

1-5