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Salfordia Construction Entering the Chinese Market - Case Study Example

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The paper "Salfordia Construction Entering the Chinese Market" is an outstanding example of a marketing case study. This feasibility report identifies the likelihood for Salfordia to achieve success in a joint venture in the Chinese construction industry…
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The paper "Salfordia Construction Entering the Chinese Market" is an outstanding example of a marketing case study. This feasibility report identifies the likelihood for Salfordia to achieve success in a joint venture in the Chinese construction industry. Research has identified an industry that is achieving significant growth rates and is providing billions of USD in revenue for both domestic and foreign firms with a foothold in this foreign market. Challenges for a joint venture in China include a stringent regulatory environment, an industry mindset of waste, and cultural disparities which are significantly different from the cultural dynamics of the United Kingdom where Salfordia is accustomed to operating.

Despite these challenges, Salfordia can achieve joint venture success in China by developing strategies to unfreeze existing organisational culture norms and behaviours that have been a part of Salfordia’s business model for decades. This will include improving leadership competencies, identifying the drivers of change resistance, building inter-dependent collaborations with HR and line management, and using models to combat change resistance in a new joint venture that will require radical and continuous change.

If the business can overcome all challenges and uncertainties, the potentiality for joint venture profitability and success can likely be guaranteed. This feasibility report highlights all advantages and challenges to entering the Chinese construction market.Salfordia Construction Entering the Chinese Market1.0 IntroductionSalfordia Construction is a medium-sized construction and contracting organisation with an established reputation in the Northwest of the UK. As a long-standing family-run firm, the business had established its own organisational culture which consisted of a blend of hierarchy-driven decision-making and the presence of clan culture.

Using the Competing Values Framework of organisational culture proposed by Cameron and Quinn (1999), this represents an organisation that maintains concern for internal employees whilst also maintaining a focus on providing sensitivity toward customers. Concurrently, the hierarchical organisation emphasises control and stability in a largely centralised business structure (Cameron and Quinn).

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