Title: Appropriate manufacturing strategy in China: a case study

Authors: David J. Robb, Bin Xie

Addresses: Department of Management Science & Information Systems, The University of Auckland, Private Bag 92019, Auckland, New Zealand. Department of Management Science & Engineering, School of Economics and Management, Tsinghua University, Beijing 100084, China

Abstract: In recent years, many Foreign-Invested Enterprises (FIEs) in China have either downgraded their profit projections, relocated to other regions of Asia, or retreated to their home nation. Their rationale often includes rising costs, exchange rate concerns, and difficulties in the operating environment (e.g., logistics, language, and labour issues). Despite this, some FIEs thrive. Here, we present a Beijing-based medical products/rehabilitation company, documenting how it is not only coping with the complexities of life in China, but even viewing its operations as providing a model for the rest of Asia. Its strategy involves a carefully crafted mix of leading technology and dedicated people (with very few expatriate staff) to meet the challenges of an ageing and increasingly wealthy population. The case serves as an example of how businesses are exploiting technology in China today, as well as providing a teaching tool to illustrate manufacturing and logistics management practice in an international context. Case questions are included in an Appendix.

Keywords: operations strategy; production management; centralized fabrication; joint venture management; supply chain management; human resource management; prosthetics manufacturing.

DOI: 10.1504/IJMTM.2000.001368

International Journal of Manufacturing Technology and Management, 2000 Vol.2 No.1/2/3/4/5/6/7, pp.633-644

Published online: 02 Jul 2003 *

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