Establishing of manufacturing companies can sometimes be a major challenge to producers due to the laws and regulations put in place by the government of a given nation. In china, there are laws that complicate the manufacturing industry like the workers safety and health regulations, employee benefits and the civil rights and the labor standards. To minimize on the effects of this rules tendency to raise costs, the firm plans to acquire some of its employees from other developed branches in the world to china.
The most appropriate technology in this situation is a capital intensive technology. This is the form of technology that uses maximum possible utility of machines and other capital oriented techniques of production. These are aimed at keeping the hiring of personnel at a minimum because of their prohibitive cost in the Chinese labor market. To make the choice, management engaged the advice of well experienced Chinese tire factory builders (Brickley, 2009).
The organization has ongoing plans to comply on all the laws in place including the payment of taxes through a lawyer’s advice. Compliance to taxation will be currently placed in the department of accounting.
In the current Chinese market on tire manufacturing the government has increased some tariffs on exports to the US thus strategies are in place to identify other markets like Africa and Asia. The tax benefits in terms of tax refunds have also been withdrawn, it is therefore necessary that the company to prepares a 5 year market and operational strategic plan on the activities of the company (Brickley, 2009).
The above laws challenge the business start up process, however; the firm has great prospects from the readily available market for the numerous populations with individual owned cars and the overgrown export market in china. As a contingency plan the organization has arrangements to employ good marketing strategies to exploit the domestic and the export market.
Besides, the firm has hired a new human resource personnel to ensure that the employees are oriented in the organization in the most efficient and proper way. I had already put in place the rules and the culture of the company on ethics like respect and cooperation between employees, and the culture of the organization as customer satisfaction through quality (Gareth, 2008).
The employees are expected to be self driven and responsible nevertheless, those that defy the company rules may have to face consequences for their actions. The management chosen to employ suspension from work or even termination of employment depending on the gravity of the matter for non compliance of company rules. This will help in the keeping of employees disciplined.
On the other hand, in an effort to boost the integrity of the employees, the management has offered a good remuneration package for each employee. In addition to that, there are development plans and implementation activities for a strong organization culture that will create a good image of the company, and at the same time act as a motivation to the employees (Gareth, 2008).
In our marketing survey of the Chinese environment, we were able to establish that politically china is a stable state which guarantees a steady business environment. The transportation system is also at a recommendable level, and we expect to experience minimum challenges since the company owns trucks (Gareth, 2008).
References
Brickley, J. S. (2009). Managerial economics and organizational architecture. New York: McGraw Hill/Irwin.
Gareth, R. J. (2008). Contemporary Management. New York: Penguin publishers.