Mlk Auto Company Case Summary

1280 Words 6 Pages
MLK Auto Company looks to move their operations into an unknown territory for them in the competitive markets in China to have lower production costs. The company, stationed in the United States and produces auto parts, could have a competitive advantage when it comes to the market in China. Although they have thought the move through, there remain aspects that the company needs to think about clearly so they avoid making a wrong decision. To begin, MLK must look at the economic environment in China to make the best decisions. There may be a chance that MLK could have a hard time, but if they look at the economics in the country, they will survive. MLK must look at the wages of workers in the area and compare it to what they will be paying. …show more content…
MLK must be brought up to speed on the laws and quirks that make up the Chinese commerce that may not be seen in the United States. MKL needs to have top management that will set the overall direction of the firm while making the tough decisions. They responsibility for making sure the laws are being abided by when starting out in China also fall on the managers. They allocate the time, money, and resources to what they believe needs it. The middle management will supervise the lower employees and make sure the employees follow the laws and regulations. Business in China relies heavily on personal relationships. If MLK goes into china thinking they will only be doing business, it will be hard for them to succeed. MLK will need to take the time to develop personal relations with other businesses if they want to grow their business. These remain the most important when making the move to China because they will report what they see and hear to the upper management in order for them to make decisions that will fix it. If the employees make mistakes and nobody notices, it would have a harmful effect on the company. Strategic planning must go into the legal aspect of business. They can tell if long term objectives and priorities can legally happen. Tactical, operational, and contingency planning also goes into what the legal team needs to provide. They will often use an organizational chart to help them map out what they need to abide by. The legal issues that businesses could move into by refusing to follow the laws could make the company end up in a cruel situation, but by doing their research could make wholesome

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