Welcome To Entrepreneurship Development Presentation

1. Innovation and Liability 2. A Chinese Companys Successful Internationalizing Processes

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Innovation and Liability

Summary: When we think about innovation, we always think only the positive sides and not negative sides. When any negative thing arises then who take the liability, this research paper is based on those points.

Innovation and Liability

1. Introduction:

2. What is Socio-Economic Liability? a liability results when an obligation is not fulfilled.

2 kinds of liability are: Criminal liability is when there has been a criminal act committed because the guilty party broke the law of the land.

Civil liability is when an obligation has not been met by a party and that party is bound to make compensation to the sufferer.
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Innovation and Liability

Socio-economic liability is the failure of the regulatory body to meet social responsibility which arise from economic decline from commercialization delays. When this occurs the media coverage change social perception of the innovation. when a regulatory failure occurs, there are some social externalities which are created by other firms and by consumers. StarLink corn had only received regulatory approval for use as animal feed.
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Innovation and Liability

The US Environmental Protection Agency (EPA) required Aventis to establish a system to ensure that all StarLink corn produced be channeled into animal feed markets. Aventis established Stewardship Program to achieve the EPAs objective but this program failed miserably.

Innovation and Liability

Those who are responsible for the creation of this liability are: Aventis EPA The US lost corn sales to Japan because of the adventitious presence of StarLink. A very localized physical problem can have negative global financial impacts in todays global marketplace.

Innovation and Liability

3. The Other Players: Courts and Society:
Some civil society issues can become very contentious due to the debates that originate from legislators and the debates that originate from the professional legal community. Distribution of wealth
a. European Approach b. North American Approach

Innovation and Liability

4. The Road Ahead
The issue of liability management regarding transgenics would seem to be related to three key features of present day society. Key features are: Consumer trust Science based risk assessment process Concept of consumer empowerment

A Chinese Companys Successful Internationalizing Processes

Summary: This paper is based on how the internationalization process of a Chinese company Haier became successful. Their target was to become No.3 appliance maker in the world. Initially, they involve in internationalization process passively and then actively. Later they became successful in internationalization.

A Chinese Companys Successful Internationalizing Processes

1. Introduction:

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A Chinese Companys Successful Internationalizing Processes

2. Internationalization in the Chinese Context

2.1 The initial involvement of internationalization: China did not get success because of Artificial and regionally restricted internationalization Close door policy.
2.2 The passive process of internationalization: China started internationalization passively by Open door policy Conducting some political and economic changes Allowing foreign internationalization

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A Chinese Companys Successful Internationalizing Processes

2.3 The active process of internationalization: China began to internationalize actively by Shifting from central govt. economy to market led economy Evolving from lower levels of exporting, licensing to higher levels of international joint ventures, and partially or wholly owned subsidiaries.

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A Chinese Companys Successful Internationalizing Processes

3. An overview of international theories

3.1 The Uppsala Internationalization Model (U-Model): Market knowledge and market commitment affects both the commitment decisions and the way current decisions are performed . 3.2 The Innovation-Related Internationalisation Model (I-Model): Summarization of innovation related perspective of Umodel.

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A Chinese Companys Successful Internationalizing Processes

Bilkey and Tesars Model:

Stage 1: Not interested to export. Stage 2: willing to fill unsolicited orders or is partially interested

Czienkota and Cavusgils Model:

Early Stage: More interested and active. Next Stage:
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A Chinese Companys Successful Internationalizing Processes

4. Evaluation of the stage models

U-model has been used for many companies in different countries. I-model is very useful for small and mid-sized company. Criticisms: 1. These models are merely historical descriptions. 2. The implications for management are not their central themes 3. They offer relatively little advice on how to manage the transaction for domestic companies that are undergoing internationalization. 4. Most of the stage models are based on their specific context and are restricted to small- and medium-sized manufacturing companies.
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A Chinese Companys Successful Internationalizing Processes

5. Challenges for internationalization theories:

Accelerated internationalization
New ventures with having both opportunity and risk of newness ( poverty of resources) Close door policy ( china was an insignificant player) Limited technological innovative capability. Uneven-cross regional development with largest consumer basis.

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A Chinese Companys Successful Internationalizing Processes 6 Haiers internationalization processes

6.1 Haiers exporting: Total exporting revenue $10 billion Increased from 2001 37% Countries and regions 200 Haiers Export in 2002 European counties Japan 60% 20%
Europea n country Japan

Southea st Asia Others

Southeast Asia
Others

16%
4%
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A Chinese Companys Successful Internationalizing Processes

6.2 Dawar and Frosts survival strategy theory and Haiers internationalization strategy (1) Stage one: a defender: Competitive assets and globalization pressure are low. (2) Stage Two: a contender: Competitive assets are high and globalization pressure is low. (3) Stage Three: both an extender and a dodger: Advantages of extender strategy application.

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A Chinese Companys Successful Internationalizing Processes

7. Haiers empirical challenge to traditional stage models of internationalization

The initiation of exporting of QGRF (Qingdao General Refrigerator Factory, predecessor of the Haier Group) was to the well-developed country Germany not the psychologically close country nor to enter new markets with successively greater psychic distance nor the neighbor countries, which shoes an practical challenge to the stage model.

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A Chinese Companys Successful Internationalizing Processes The motives underlying Haiers creative internationalization processes are: 1. Building a permanent international market position 2. Meeting competition 3. Following customers 4. Exchanging of threat first difficult, then easy, 5. Shaping the competition

8.Conclusion:
Our biggest challenge is not that we are backward but we are afraid we may not be strong enough and only by actively taking part in global competition can we seize a chance to survive. The limitation is that Haier is the unique case that has been proved to successful in China. 20

Any Question?

Thank You
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