MGT498 Section 006

Mini-Case Sany

1. How does the level of change in GDP influence a firm like Sany?

For firms with a wide global market, such as Sany, a country’s GDP can impact their decision
to become a customer because it shows the level of growth and development inside a
country at a given time. A high GDP shows that this equipment may have a strong demand
across the country, while a low GDP might show a lower demand for these products in a
particular country. GDP influences firms like Sany on a regular basis, as these levels can give
the firm a good idea of what their future markets look like, as well as varying levels of
demand based on location, which will allow them to forecast their potential revenue.

2. Why does a firm such as Sany (in the heavy equipment industry) spend so much of its
revenue on R&D and innovation?

In an industry involved with heavy construction and manufacturing equipment, providing

the technology that allows companies to cut cost and time is incredibly important to
customers. Innovation in product design and efficiency gives firms a competitive
advantage in a highly technologically competitive market. Firms in this industry are
spending so much revenue on R&D because it creates opportunities for the improvement
in quality of existing products, identification of new technologies, and the development of
new products. This investment goes to support their innovative focus that Sany strives for.
They focus on R&D, innovation, and continuous improvement which helps to keep up with
the industry leader, Caterpillar.

3. Given that it’s now seeking international expansion, how do you expect the judgement
against to (patent and trade secret infringement case) to affect its growth prospects
outside of China?

With the judgement against it, international expansion may become more difficult for Sany
because of the negative image that places on the company, which could result in
stakeholders and customers to disassociate from them. This also has the potential to affect
future international business because Sany could be viewed as unable to make joint
ventures, acquisitions, and strategic alliances. This could hurt their opportunity for
diversifying growth for many other reasons, one including financial changes and
adjustments needed for unanticipated changes in capital and financial markets (Warner,
2016). Something in Sany’s favor for international growth is that they have established
subsidiaries in multiple countries.

References
MGT498 Section 006

Warner, I. (2016, October 14). The Manitowoc company prevails in patent infringement and
trade secret Misappropriation lawsuit AGAINST SANY. Retrieved from
https://www.businesswire.com/news/home/20161014005585/en/The-Manitowoc-
Company-Prevails-in-Patent-Infringement-and-Trade-Secret-Misappropriation-Lawsuit-
Against-Sany