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Cumi

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CUMI’S in China
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CUMI’S in China
In 2011, the Parry building held a summer meeting where among the boards present was
the board of Carborundum Universal Murugappa Limited (CUMI), overlooking the always busy
traffic of Chennai, India. In 2006, CUMI decided to enter the China market through a joint
venture with a Chinese state organization despite the various challenges. However, despite the
fact the organization’s Chinese activities made progress, they continued to incur great losses.
The essay below will discuss CUMI’S experience in China, CUMI’S problem in China, the
reason why CUMI is not able to translate its Russian success to China, the importance of China
to CUMI, whether the management is right in thinking about China-centric, CUMI’S options in
China, my recommendation to CUMI as China strategy, and how I would implement it.
CUMI’S experience in China was mainly influenced by the belief that in the future,
China would be a monopoly or dominant force in the future of particularly abrasives, with the
fact that CUMI being in China for a long duration and understanding how to conduct business in
China. Furthermore, CUMI maintained the worldwide strategy, although china presented an
enormous opportunity (Crevani, 2016). For instance, it was only in China that could provide
more than approximately 50 percent of the raw materials required to manufacture abrasive
worldwide. Additionally, China posed stiff competition to CUMI through various strategies, such
as manufacturing through cost-effective, low-cost Chinese imports. With this in mind, through
experiences, CUMI realized that China would definitely set worldwide standards for delivering,
pricing, and quality and thus deciding to create a base in China where for CUMI to gain not only
potential to build but also competitive strength, especially global export.
There was various CUMI’S problem in China. The major problem was profitability,
especially when CUMI’S operation was operating as a stand-alone operation, struggling to attain

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1 CUMI’S in China Name Professor Institution Course 2 CUMI’S in China In 2011, the Parry building held a summer meeting where among the boards present was the board of Carborundum Universal Murugappa Limited (CUMI), overlooking the always busy traffic of Chennai, India. In 2006, CUMI decided to enter the China market through a joint venture with a Chinese state organization despite the various challenges. However, despite the fact the organization’s Chinese activities made progress, they continued to incur great losses. The essay below will discuss CUMI’S experience in China, CUMI’S problem in China, the reason why CUMI is not able to translate its Russian success to China, the importance of China to CUMI, whether the management is right in thinking about China-centric, CUMI’S options in China, my recommendation to CUMI as China strategy, and how I would implement it. CUMI’S experience in China was mainly influenced by the belief that in the future, China would be a monopoly or dominant force in the future of particularly abrasives, with the fact that CUMI being in China for a long duration and understanding how to conduct business in China. Furthermore, CUMI maintained the worldwide strategy, although china presented an enormous opportunity (Crevani, 2016). For instance, it was only in China that could provide more than approximately 50 percent of the raw materials required to manufacture abrasive worldwide. Additionally, China posed stiff competition to C ...
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