The Montblanc Company is going to open a new subsidiary in China. I have just been promoted to be the manager of this new subsidiary in China and to design a strategic plan for the Montblanc Company. I am aware that it is a particular market and that some measures must be taken if I want this new establishment to be a success and so to succeed as a manager. I will first describe the company and its products that we want to sell in China. Then I will make an analysis of the concerned country, China, in order to understand it better. This will permit us to know the culture of this population and so that we can be prepared for our business with the Chinese people. In fact, a strategic plan must be written to cover several issues like the human resources, the cultural issues, the market issues and any other issues that are key to our success. Montblanc International is a German company specialized in the production of pencil, watches and other luxury products. The company's name comes from the Alps Mountain. The first fountain pen has been sold in 1909. The company offers life guarantee on its pencil which proves the excellent quality of the brand.
[...] There are half a million dollar-millionaires in China today, and an estimated 30 million people who can afford luxury products. China continues to be the world's biggest supplier of writing instruments, with exports increasing at more at than 25 percent annually. Overseas revenue is expected to exceed US$ 1.2 billion in 2007. China suppliers offer writing instruments at all price points. But some makers are differentiating their products by incorporating novel electronic features, and innovative and ergonomic barrel shapes. Montblanc will differentiate itself thanks to its traditional know-how, its hand made, and its high quality and thanks to its design. [...]
[...] As we have just seen, we can say that China is: Highly collective Focus on quality of life, relationships Very long-term (tradition) Very high power distance (inequality) Moderate uncertainty avoidance (prefer some structure) On the contrary, Germany (Montblanc Company) is: Fairly individualistic Focus on quality of life, relationships Short-term High power distance (inequality) High uncertainty avoidance (prefer structure) In fact, according to Geert Hofstede, German Cultural Dimensions are the following PDI IDV MAS UAI LTO According to this table we can see that there are many differences between the two concerned countries. [...]
[...] In fact we will use reward to encourage and motivate even more the Montblanc's employees. Structure organization: The arrangement of positions in an organization helps to define the interaction among employees and their responsibilities, identify the job position to which each employee must report and to define the decision- making process. The six most common forms of organizational structure Functional Geographic/regional Product Division Customer Matrix Montblanc is an International Company. This is why, for our new subsidiary, we have decided to have a matrix structure which is a combination of two superimposed on each other. [...]
[...] In fact the Montblanc Company must establish a strategic plan for its new subsidiary in China. Motivate the employees The employees need to be motivated According to workers here is the list of the main sources of motivation: 1. Appreciation 2. Being on things 3. Help on personal problems 4. Job Security 5. High Wages We should consider all these pointy in order to motivate and satisfy our employees. Expectancy theory of motivation: This theory deals with motivation and management In order to help employees to realize good results, we will have to help them being motivated so that they will do efforts and so become more efficient. [...]
[...] In fact there have been crises that have hit the Montblanc pencil. The sales have dangerously decreased. This is why the group has decided to enlarge its production, to diversify itself with perfumes, jewels, glasses and watches desk accessories. In fact writing instrument where the only activity of the brand until 1992. Other products now represent 40% of the sells. Brand sell are currently increasing. Since the beginning, the Montblanc Company has built high brand awareness, based on the high quality and the technicity of the pencils that the firm manufactures. [...]
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