Individual weekly contribution to Seminar Topic 7 discussion and questions

Read the short case ''General Motors Corporation”.

It is located on pp. 455-456 in your textbook or you can access it from the e-Library resources provided for this course on the learnonline site.   

Answer the questions below. Do NOT answer the questions at the end of case in the textbook.

Attach a word document for each post with the following format:

FAMILYname-Firstname-week#.doc

"General Motors (GM) entered the Chinese market at a time when demand was quite limited. There were a number of rationale for the decision both in the short term and in the long term. It also chose to enter China through a joint venture with SAIC. There are both advantages and disadvantages in entering China through this type of entry strategy. There are also considerable risks. For example, it could have simply licensed its technology to SAIC. It could also have easily exported cars from the US to China". 

In light of this statement discuss the following questions:

1. Why do you think the joint venture has been so successful to date? Do you see any concerns in the future? Why?

2. As of 2015 GM appears to be increasing its strategic commitments to China, building more factories and opening more dealers. Why is the company making these decisions do you think? Do you have any concerns with this strategy? What potential risks do you also see here? Why?

(300-600 words)