The Kodak Venture in China Case Study Example | Topics and Well Written Essays - 2000 words

The Kodak Venture in China - Case Study Example 2001) .China has indeed got all the ingredients to make an IJV(international joint venture ) a success based upon its vast population, large consumer base and less firm grasp of the brand MNC's power and few branded commodities - a marketer's dream come true.Many writers have described China as an enigma ..With many organizations having already tried and failed". (Heracleous, L. 2001) This is due to a lack of knowledge of the local environment and guanxi (relationships and connections). (see appendix below) The Kodak venture in China was different story as the international company owned by Eastman Kodak struggled to permeate into the Far Eastern Human Resource Management barriers.It is reported that currently Kodak's Chinese revenues are currently more than $300 and it has a 40 percent market share along with 5,500 outlets. (Alon 2001).Where as Kodak benefitted immensely from its focus on the franchises for rapid distribution and focused on brand equity and closer trust and consumer understanding, a strategy of long term investment and less short term costs and a strategy of establishing close relationships with multiple levels of government . (see appendix below) (Alon 2001). From an HRM perspective however Kodak had the following potential challenges in the HRM area in front of it. It is however worth identifying the conceptual framework with in which I will be commenting on the Kodak case study. (Alon 2001).This framework implies the whole organization and planning of the research and identification of the purpose and the methods applied and outcomes derived as result of the organizational framework. This chart shows the framework which served a guideline for the research procedure. In commenting on the Chinese HRM challenges facing Kodak as a Western Company the table below illustrates my approach in explaining the success of Kodak in localizing management strategies in China. (Alon 2001). What is really important is the way Kodak was able to recognize the importance of developing a corporate management culture to effectively work in the Chinese market cannot be overemphasized. With economic growth exceeding 10%, Kodak fast realized that China's enormous domestic market offers huge upside gains for those firms who successfully implement localization techniques to make their ventures more successful. In addition to settling up the methods, procedures, and environment in which to train them, Kodak also has had to devise the means via which to retain them as well, as the Heidrick & Struggles (2006) report cites that the management turnover in China ranges between 15 to 20% according to their survey of 148 executives. This situation has put those managers with the skills and expertise in this area in the position of being able to switch to jobs offering the highest compensation and fringe benefits. This leads