Strategic Management05-Bhavesh Kukreja- 2201202Z1909

1. If you were Hua Dongyi, Chairman of Sino Iron in Australia, how would you deal
with the Australian government, given its negative attitude toward Chinese
investment?
A. If I am Hua Dongyi I would deal with the Australian government because they
have a negative thoughts against Chinese investment, hence it is important to
understand each other culture and after that the government should give approval
on time. The chairmen could also find the local companies for joint venture or
some local investors. If they hold talks with the government to make them
understand so how any investment will help the economy properly and ensuring
that you will comply with the norms, laws and regulation of the country. As we
know this project was comes out without consideration and without any cost
estimation. If I would the chairman I will first estimate the things like a plan to
how to complete the task before the deadlines and some other factors also have
been concerned like there was lack of labor force that could lead to the company to
hire the labor from china and they have to appear in IELTS exam. For me I will
understand the culture and the resources they have then I will make government to
have the positive attitude.

2. Compare CITIC’s overseas project investments and operations in Africa and

Australia. What are the institutional differences? How do these differences affect
firm performance?
A. As we know in Africa CITIC leverages its states ownership background and they
also get support from local government but on the other hand in Australia CITIC
the state ownership background did not give any benefits. The enterprises that
 State owned and their subsidiaries could easily be regarded as agents of foreign
governments. That viewed them as threats to national security. The differences
are because of the difference countries and how they are run and who they are run
by. These differences affect the firm’s performance because the attitude is
completely different between the two. It is more relaxed in Africa and the people
know that, and take advantage of that. Where in Australia it is not as relaxed, and
they are viewed as a threat.

3. What liabilities of foreignness have CITIC encountered in Australia?

A. It always require for the country who is planning before taking anything into
action I mean to do business in other country this kind of factors helps to
managing the organizational and establishment affairs related to laws, corporate
strategies, political stability etc. In this case the company Sino Iron whose parent
company CC located in china which involved in the mining and processing
operation in Australia. For this project Mr. Hua Dongyi is a chairmen in the
Company Sino Iron.

4. Who are the stakeholders in the Sino Iron project? How can the Chinese company
best engage them?
A. There are many stakeholders in the Sino Iron project in 2008 are Main Mine
Business, Contractors, Government, Employees and Environment and Heritage. In
2011 only the government was only the stakeholder and the Chinese company
knew the things were going to be difficult and its going to hard to deal with. What
they need to do to engage them is to put different priorities on different issues and
stakeholders. Also, the company cannot just assume that they can do things and
they need to make sure that they run it through the proper channels first.