Appropriate manufacturing strategy in China: a case study

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.