Name: Ashfaq Memon

Batch:SS/09-11/IIPM
Prof: Robin Thomas Sub:IHRM

ASIMCO

Asian Strategic Investments Corporation

Q1: Write the brief of the company

Jack Perkowski an American Business Executive established ASIMCO (Asian Strategic
Investments Corporation) in 1994. , the Company is now one of the largest, independent components
manufacturers in China. The Company supplies competitively priced high quality products to both the
China and global automotive markets. In 2002 ASIMCO became one of the largest components
organizations serving the Chinese motor Vehicle Industry in 2002.

Q2: IHRM issues in the Company

They were neither trained to market products nor exposed to competitive practices in the
global marketplace.These managers had wide discretion in running firms and were more willing
to take risks.ASIMCO had negative experiences with these entrepreneurs.

Those managers whose only experience was with a SOE tended to be highly bureaucratic,
while managers of privately owned companies tended to be uncontrollably entrepreneurial and
wereless loyal.

Faced with this dilemma, ASIMCO felt that there were three alternatives to bridge the
management gap, i.e., to bring in foreigners, to rely on traditional Chinese managers, or to
develop what the Company referred to as a “New China” management team

Q3: on the strategies overcome these issues.

ASIMCO felt that there were three alternatives to bridge the management gap, i.e., to
bring in foreigners, to rely on traditional Chinese managers, or to develop what the Company
referred to as a “New China” management team.

ASIMCO’s vision consisted of three parts: its core purpose, its core values, and its goal.
 Name: Ashfaq Memon
Batch:SS/09-11/IIPM
Prof: Robin Thomas Sub:IHRM

 Core Purpose - To create a truly global Company that is unique because of its ability to
combine the best in China with the best from the rest of the world.

 Core values – Successful ASIMCO managers believe in teamwork; accept personal

responsibility; understand the need for continuous improvement. They join
ASIMCO because they want opportunity, and are determined to accomplish significant
goals.

 Goal – ASIMCO targets sales to global customers, including foreign-invested enterprises

in China and customers overseas. Its goal is to have more than 50% of sales to
global customers.

Training

ASIMCO’s objective was to provide its customers with products and services of the highest quality
at attractive prices. The Company’s staff was trained to ensure that quality standards (e.g. the
global quality benchmark of six sigma) were met. Functional training in areas such as finance,
purchasing, marketing, human resources, quality, lean manufacturing, exports and logistics was
conducted on a continuous basis throughout the organization.

Performance Management

The system formalized the process of goal-setting, feedback and coaching, performance
review and paying for performance at ASIMCO and within each Operating Unit.

Quarterly general managers’ meeting

Beginning in 1999, ASIMCO organized quarterly general managers’ meetings, which were
generally held over a two-to-three-day period at the location of one of the operating units.
These meetings provided management with a forum in which to outline strategy, review
quarterly results, share best practices, conduct training and introduce new management
concepts. The credibility of managers could also be assessed by comparing their actual
achievements with their original goals.