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Week Two, DQ #1: The Impact of the Rise of China and Globalization
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Assume you are the new CEO of the Alpha Beta Corporation. For the past two decades, Alpha Beta has sold 10% of the sprockets it produced in the U.S. in Europe by working through three different wholesale houses that resell to local merchants. Several members of the Board of Directors have suggested a much more international approach to expand the worldwide market for sprockets. As the new CEO (who is 45-years old and has spent an entire career with the company), you are open to this change of direction.
Based on your understanding of the readings, what kinds of events in the coming decade might have the greatest impact on Alpha Beta’s ability to expand its global reach? Since China is the world’s largest market and a growing center of manufacturing, would it be a good idea for Alpha Beta to both manufacture its sprockets in China and try to break into the retail market in China as well? In general, what are the two most significant challenges and the two most significant opportunities facing companies such as Alpha Beta as the company attempts to adjust to the global environment?
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