Toyota Thusho, Aisin Seiki and Denso
Assignment1. On Nov.27 2013 a news says that Toyota Thusho, Aisin Seiki and Denso will jointly open a 100% FDI in Cambodia, where second handed car market expands rapidly, that will offer automotive repair and maintenance services, as well as sell related automotive components. The 100%FDI, named PIT&GO automotive service (Cambodia) Co. Ltd.Will be established in coming Feb.2014 with capital of $900,000, 51% owned by 100% FDI Denso in Singapore, 39% owned by 80% JVFDI of Toyota Tshusho in Cambodia and 10% owned by 100% FDI of aishin in Singapore. To expand its regional service network including Laos and Myanmar, PIT&GO will identify qualified stores and designate them as PIT%GO-certified, as well as help them improve their repair skills and store management. This business model can be extended to African market.
Question Why is this service FDI established in Cambodia, not in other Asian countries> Why will such service FDI be established in Africa? Write possible reasons with using car agent relationship (car dealership) in other Asian countries where Toyota has manufacturing FDI, and consumer behavior of Century of Asians.
Assignment2. Japanese top pump manufacturing company Ebara established JVFDI in Indonesia in 1980, when the Goernment of Indonesia took import substitute FDI policy. Torishima Pump, the rival of Ebara, established JVFDI in Indonesia in 1985, when the Government of Indonesia changed to export oriented industrialization policy from import substitute industrialization policy. This 5 years difference has made Torishima Pump to take different management strategy and sales network strategy with those of JVFDI of Ebara. Explain the different strategy of JVFDI of Torishima Pump in Indonesia with strategy of JVFDI of Ebara in Indonesia. In China, Ebara has two specialized pump manufacturing FDI in Zhejiang and Shangdong. Ebara Great Pump Co. Ltd. (EGP) is a JVFDI with Ebara51% and Zhejiang Great Industrial Share Co. Ltd. 49% established in 2005. Ebara Boshan Pumps was established in Shangdong in 2005 with Ebara 72% ad ShandonBoshan Pump 28%. But as ShanfomBoshan Pump requested Ebara to purchase its equity protion of the JVFDI, Ebara Boshan Pumps has changed to 100%FDI. Shandong Boshan Pump is a SOE and has 3 overseas representative offices in Myanmar, Sudan and Ethiopia, where Chinese ODA has rushed.
Question Write the possible reson that Shandong Boshan Pump sold its equity protion of Ebara Boshan Pumps to Bbara.
On Nov,24,2012, Aeon reopened Jusco Huangdao Shopping Center(Qingdao, Shangdong, China). Which was damaged severely by the attack by anti-Japan demonstration on Sep. 15,2012. Aeon has changed store name of GMS(general merchandise store) in China from Jusco to Aeon from March 2013. In Jan.2013, 7& I Holding liquidated a JVFDI, WangfujingYokado Ltd. When the JVFDI closed its Beijing Jinsong store. 7 & I China focuses on GMS of Hua Tang Yokado Commercial Co.,Ltd.(9 stores) and ChenduYokado(5 stores), CVS(convenience store) of 7 Eleven and future shopping center business in Chengdu which will start in 2014 spring. Aeon Malaysia, manages 29 GMS stores in Malaysia, purchased 26 hypermart stores from Carrefour which left from Malaysian market in Nov, 2012. Aeon Malaysia has changed Carrefour hypermartstroes to new GMS with smaller space(15,000m2) and lowered priced goods for volue zone consumers. This new GMS model will be expanded to Vietnam, Indonesia and Cambodia in 2014.
Retail FDI in Vietnam has a difficulty to develop multiple stores as provincial government is reluctant to extend business license without clearing ENT(Economic Needs Test) to protect local retailers. But French FDI Big C, Vietnam has 24 hypermart stores. ENT standards are loosened with new Circular 08/2013/TT-Bct of Ministry of Economy and Industry(MOIT) on April 22, 2013. The new ENT standards permit exception of new tenancy as a retailer in existing shopping center and ENT is evaluated in district base not province nor special central government management city(Hanoi, HCM, HaiPhong, Da Nang and Can Tho) base.
Question Explain FDI strategies of Aeon in ASEAN and China and 7& I in China with technology transfer on marketing technology, management technology or manufacturing technology. Next make an OPA of one of those FDI with reasons of difficulties in technology transfer.