Management Report On The Strategic Issues Commerce Essay

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Jiangsu Jiuchuan Clay Technology Development Co.Ltd. is located in Xuyi country Jiangsu Province which is known as the capital of attapulgite clay. It was established by Shu Guang proprietary group along with its strategic investment partners. They have invested 50 million Yuan covering about 33 acre in China Attapulgite Clay science & technology zone and is the biggest high tech enterprise covering research & development, production, application & sales of stick crystalline inorganic Nano materials and Nano attapulgite. The company is having the capacity to produce 30,000 tonnes attapulgite & 10,000 tonnes nano composite plastics. Their advanced nano materials have been applied in the top products in the field of petroleum, rubber, chemical, pharmacy and environmental protection. The company has reached the leading level in the world about GE engineering plastics. At present the company have constructed a long time close co-operation with the Chinese Academy of Sciences, East China University of Science & Technology and Huaiyin Institute of Technology. With the technical support of these institutions, the company has established the first attapulgite technology clay test centre, Jiangsu key lab for the utilisation of attapulgite clay resources & the attapulgite clay research & development associated lab. The products of the company are Nano Attapulgite, Nano Polymer nucleating, Nano composite plastic, Nano enhancer, Nano organic materials, Nano composites, Super nano inorganic high viscosity and the three dimensional network of adsorbent act; thus helping to carve a road of application of nonmaterial's. Recently, the company has a strategy to enter into the European market for the purpose of developing its capabilities in the Research & Development and the product development; they have aspiration to become a technology leader in the industry. The imperative plan of the company is to use the technological knowledge, gained from investments in Europe, to develop products & the production processes in the home base. With the help of that they can expand their products to Europe and the USA.

Advice on the selection of the country (720)

The strategic focus of the company is on the research & development activity of the product. The company is eager to bring an innovative product to the market in order to capture the segment market orientation. In order to have a strategic direction, it is advisable to the company to make its development in the United Kingdom. The Penrosean approach of bio-technology is applied in the UK in order to explore the interplay of internal & external dynamics in the development of the new businesses. The very concreteness of bio-tech ventures facilitates the common development processes in all of the new businesses in UK; these types of businesses are creating outstanding values, which are attracting investors perceptually on a longer term basis than in the other sectors.

Recently in Russia, world's largest nanotechnology funding programme was approved with $3.95 billion set aside until 2015. In Europe, Germany leads the nanotechnology programme as the Government has endorsed nanotechnology since 1980s. Germany is also ranked among the top 4 locations worldwide for nanotechnology and is also home to global players in nanotechnology such as Bayer, Siemens, Evonik and Carl Zeiss. Table xx below shows that Japan is a world leader in per capita funding on nanotechnology while in Europe, Germany leads the pack.


Funding levels per capita

(in billions)


$3.43 B


$10.92 B


$9.71 B


$11.65 B


$10.01 B

UK government has also spent approximately £600 million in the last 10 years to support research in nanotechnology. The total funding has easily exceeded £1 billion mark if the investments by UK government are coupled with corporate funding based on 50:50 criteria. In the UK, there are over 600 micro and nanotechnology companies each developing commercial applications from nanotechnologies (Source: NanoKTN, 2009). Major firms operating in nanotechnology in UK include Oxonica, Elan, Hitachi and Nanoco.


Estimated Amount (in million)























Estimated UK Government support for nanotechnology

Historically, research in UK has been successful and is also considered as a leading powerhouse of innovation & commercialisation. The reputation of UK in nanotechnology research is underpinned by a strong academic sector where numerous research scientists are focusing on the evolution of nanotechnology. Semiconductor industry in UK is operating within nanoscale for many years while the catalyst industry has shown inclination towards nanoscaled structures as the increase in surface area provided by nanoscale is giving rise to increased activity. Increased surface area and changes in the optical, magnetic & electrical properties are the novel properties exhibited by nanoscaled structures. These particles are becoming growingly understood, thus enabling the exploitation of nanoscale features to improve the range of existing products & potential to add new products in the market over a wide range of sectors. The Technology Strategy Board in the UK are connecting and catalysing their reactive & proactive approach in terms of the knowledge management [Parek, 2010, p16]. Volume of the work has been in spreading knowledge, understanding policy, spotting opportunities and bringing people to solve problems while making advances in the technology developments. UK government initiated a nanotechnology programme of work in the year 1986; the national initiative of the nanotechnology led by the national physical laboratory in UK and was later followed by another nano technology programme in the years 1998 to 2006. The last nano technology programme has been conducted in the year 2009 when the former Department of Trade & Industry has led to examine the potential impact of nano technology & nano science on industry in UK [Zambia, 2010, p39]. There are various key obstacles to the successful exploitation of the nanotechnology; however, an exclusive research report is available to overcome these obstacles which identify number of different opportunities in relation to nano science & nano technology industry. Various documents are published by the UK universities and research labs as per the British standards on the nanotechnology terminology to address & guide in dealing with the health & safety issues which arises due to the use of nanotechnology. As UK has a key strategic partnership with China compared to other European countries and very strong ties exists on both sides at all levels of the government and wide range of stakeholders, setting up business by Jiangsu Jiuchuan in UK is more appropriate even when UK compared to Germany is at second place in the technological leadership in nanotechnology. It is certain that an extensive business support network and significant market will stimulate more growth of nanotechnology development in future in UK with the continued support of the government.

Advice on the dealing with institutional & cultural differences (510)

According to the World Bank report, CEO's of more than 85% companies that failed to mark a success in their business venture outside China attributed difficulties in managing differences in managerial styles, corporate culture and mindsets. In UK, there are a number of people from different countries with different religion, beliefs, culture and attitudes. The company has to respect the cultural diversities and develop a tolerant way of integrating the new minorities. Training and education is must for employees to help them better manage and understand multiculturalism at work. Culture differs from one society to another; there is a classic distinction between active & passive societies. Active societies are seeking opportunities in their environment in order to improve their conditions with displaying the desire for attainment and to be in charge. Passive societies are seeking to maintain their status and display a tendency to be under the control of natural processes of the social waves & developments [Etzioni,1968,p72].


Above graph is based on Hofstede framework of assessing culture and compares the cultures of China and UK. Although his work was criticized for assuming each nation has a uniform culture, it is still considered as useful to the companies willing to establish on the foreign land.

PDI stands for "Power Distance Index" where China has a high score representing existence of inequalities of power and wealth compared to UK where there is more social equality. A large power distance culture as followed in most Chinese firms is hierarchical, authoritarian and dominating; while smaller power distance cultures demonstrate flat organisation, value participation and more democratic. IDV stands for Individualism and it represents the degree to which a culture reinforces individual's importance compared to a group and UK scores high on this value. It has been discovered that with an increase in the national wealth, a culture moves in the direction of individualism end of the spectrum. China's culture is viewed as collectivist culture on this spectrum. MAS stands for Masculinity which highlights degree of gender differentiation, i.e. the traditional role of males vs. females. Masculine cultures are also considered as cultures which value competitiveness, assertiveness and wealth accumulation compared to feminine culture which values relationship & quality of life. Both China and United Kingdom are at the same level on masculinity. VAI stands for "Uncertainty Avoidance" which deals the tolerance level for uncertainty and ambiguity within a culture. Both countries score nearly equal on VAI.


Advice on the organisational structure & the control strategies

Organisational structure & the controlling strategies in business can be planned in the relation to achieve the objectives of the business. Object oriented methodology is required to be determined in planning the structure of the organisation & the chain of order. Functional organisation structure is required to be planned with the departmentalisation of finance, manufacturing & sales. Each department can be allotted under the control of an executive or vice president who has an exclusive authority & responsibility of that department. In the functional organisation structure it can facilitate the economies of the scale within the functional departments like in General Motors plc. They have the superior functional organisation structure through the centralisation of authority with the decentralised functional departmentalisation. It enables an indepth knowledge & development of skills with the innovative functions [Fayol, 1982, p52]. It makes it suitable for the organisation to accomplish its goals in time. There can be a product division, finance division & market division, each divisional function is participating in the research work for the intensive purpose of the product development and to make success of an internationalisation strategy of the business. Corporate strategy of the business can be formed based on the regions & location of the area of the businesses. For the suitable, feasible and acceptable research & development for bringing innovative products in the market, based on the advanced terminology company can start the research & development department which will be functioning in the collection of the knowledge from the foreign countries in due course of the research analysis, new product expansion techniques can be adopted, imported regarding the manufacturing technology, product design, quality standard & the cost saving [Harris, 2007, p12]. Functional coordination in the organisation has to be maintained with the flexible communication systems & cooperation; technical specialisation can be brought in the individual area of activity with focusing on the activity researches in the functional stream of the work as regulated in the Wimsun Gears, plc at Birmingham. Probable integration & the standardisation across the product lines will be done with indepth research and with the use of the foreign techniques as used in the Perfect Circle Victor Gasket of Leyton. They are maintaining a commensurate organisation structure based on the functional activities with effective & efficient planning, organising, directing, staffing, controlling, coordination & communication [Robert, 2006, p10]. In the Raheja Group of Manufacturers in London they are using the Matrix organisation structure combining all the business activities under the head control of the chief executive officer with the regional manager as the potential third dimension in the business. Decisions about research & development are taken on the regional management level and they are executed throughout the organisation for the production & sales activities [Raheja, 2007, p18]. Organisation structure is a hierarchical concept of the subordination of entities that collaborate and contribute to serve a common aim. Organisation is a group of the clustered entities which can be structured in many different ways & styles depending on the objectives and the available potentials. Organisation structure will determine how the performance is going to be made & how the operational activities are to be managed. Organisation structure allows an express allocation of the responsibilities for the different functions & processes to the different entities at the branch level, departmental level, workgroup level & an individual level in the businesses [Corian, 2005, p37, The case study of the Motor Industries Co.Ltd, Manchester].

General Issues

A salient international issue of technology transfer is of the proprietary nature; latest technologies are particularly concentrated in relatively few companies in a few industrial countries, moreover the package of information, rights & services commonly included in a technology transfer hardly behaves akin to a public good in a public good in the extreme technology transfer as freely available information. Empirical studies have measured the significant cost associated with its supplier, borne by both technology supplier & the recipient organisations [Canon, 2005, p77]. During the past few decades much of the technology transfer has been done by the transnational corporations. The area that is having the scant attention in the literature in the cross-cultural training of the workers is to the success of the transnational corporation in the host country, the need is for the workers to be trained to understand & use the new foreign technology & to understand the culture of the foreign corporation. The need for cross-cultural training for these workers given foreign assignments & the effectiveness of the training is a topic of the recent interest in the organisations. National cultural differences mostly reside in values and less in practice, as the importance of the technology transfer is different in the different circumstances. Parent companies and their subsidiaries can improve effective technology transfer & ultimately performance, technology transfer & institutional development is the central issue [Anderson, 2007, p29]. It is required by firms & companies in the globalisation period of business & commerce to collaborate across cultures for effective technology management. In this process, some products are designed for the global markets. Much product design requires the special features for the distinctive, national, cultural and ethical markets. The availability of the low cost, well-trained technical personnel in China & the recent strong growth of the Chinese economy mean that the English firms have a growing interest in working with the Chinese organisations. Our company has a glance opportunity to expand to the UK and make use of the Research & Development at the international level in the product development in our business activity. Internet & Groupware technologies are the combinations of the hardware network architecture and the software applications that enable individuals & groups to communicate, share information & collaborate by the producing of the joint products. When there is too much or too little subsidiary entrepreneurial or joint venture autonomy there is, in that case, the functional organisation structure will be resulted in to the structured units which are competing with each other in the industry as a whole.


The exclusive focus of this management report is centred around the transfer of the business area of activity in Europe for the purpose acquiring benefit of technology management in the view of innovative product development. For entering the European market, the United Kingdom is the most opportunistic country for business development. Environmental sustainability, with the high value of manufacturing, is the major outcome benefit with the selection of this country. Benefit of the technology advancement can be acquired with the exclusive usage of internet for the purpose of an effective information management for the product development through global research & development. For the intensive expansion & development of the business' functional organisation structure it is advisable to develop. Under this structural development, different activities are departmentalised as per the functional area of activities & each manager is handling the position as the departmental head in order to control activities. All the functions of the business are centralised under the control of the Chief Executive Officer & all the functions in the area of business activity are departmentalised & the departmental manager has given the authority & responsibility to handle the working activity. Cultural & institutional differences are percolating in the technology transfer and management activity will be enhanced in order to set up the profiled business activity for the product & market development with international research & development. The structure of the organisation and strategies of controlling the business can be formed as per the functional shape of the organisational structure. There should be the combination of the culture & institutional development in order to focus on business research for the purpose of improving product design, quality and durability. Cross-cultural training of the employees is one of the most significant aspects to be handled by the company in order to develop an international market. Foreign technology can be effectively utilised in the business for the purpose of bringing innovation & improving the style of the product. It is advisable to the company to use the functional organisation structure in the business under the sole control of the Chief Executive Officer of the company which maintains the centralisation of management in the business with the decentralisation of the functions for the creativity of the product. The company deserves an optimum level of proficiency in the business with the spirit of improved product mechanism & the business research.


Every management report has been prepared to help the management in some or other way through the analytical review. Ultimate aim of every report in the business is the management decision-making. The report provides imperative sources to the management in order to arrive at the rationality in the business policy making, decision-making & strategy planning. With this report, perspectives are developed in front of management of the company in order to enter into the European Market, for the purpose of taking benefit of the available technology management in the foreign countries & make use of the impulsive research & management technique in order to improve the quality of production at the desirable quanitity, making use of the rational time management, facilitating the minimisation of the costs, making utility of the available resources, efficient & effective planning & control, suitable-feasible & acceptable technology management, time to time research & developments. New product can be developed with effective features & using the advanced techniques of the manufacture of the product which will be helpful to increase the worth of the product, quality, design, superiority, strength & structure of the product. The United Kingdom is the good pitch for the business in order to expand their business activities towards the optimisation. Internet applications will facilitate wide use of the information management in the business activity so as to reach the access of the international data sources in the view of research & development. The business can make the strategic plan in the view of the information research in the United Kingdom. Imperative products will achieve a good position in an international market with their feasible market development. Functional style, manner, fashion and norm of the organisation will be improved with the increase at the managerial level opportunities in the business which is helpful for the maintaining of the coordination, cooperation & the systematic control in the business.