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| Suitable for Growth
Looking at the history of the participating companies, it is evident that they all entered
China in a conventional way aiming to minimize risk by following a staged investment
plan. Starting with a local sourcing or sales setup (phase 1) and then later expanding the
business with local or regional production for the local market (phase 2) and then get-
ting to local development and design (phase 3) as the market matures and the company
acquires better knowledge and greater experience with the market.
The companies have quite different project organizations. Generally, there are three dif-
ferent types:
· All in China: Team members and project sponsor are located at the subsidiary in
China, making daily communication and access to local market data easy. The com-
panies are: C3 and C5.
· Split between China and DK: Team members are located at the subsidiary in China
while the project sponsor is located at HQ in Denmark, making daily coordination and
decision more difficult. The company is: C2.
· All in DK: Team members and project sponsor are mainly located at HQ in Denmark,
making daily communication easy, but access and understanding of the local market
difficult. The companies are: C1, C4 and C6.
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