Shenzhen Special Zone Daily: Chinese enterprises are good at cost control, many business leaders have said should be "low cost" advantage with the past, in order to help the profitability of foreign enterprises in the acquisition of foreign enterprises.
Ding Yuan: low-cost model of many Chinese enterprises, the cultural and institutional factors. In the country, and upstream and downstream partners, communication costs low, some companies will occupy the dealer funds become low-cost source of funds. We have a "tacit agreement", which is based on the unique cultural and institutional background. Entrepreneurs will often complain that the government, but has encountered a problem, the Government will help "iron out". The problem is that some entrepreneurs gradually this with the government's "understanding" as the core competitiveness abroad, "two of a smear. China Railway Construction in Saudi Arabia, the construction of railways, encountered the problem of labor disputes and the progress of the project, people do not help you, things become increasingly complicated.
Apple why almost all product lines are built in China, cheap labor is just one of the factors, is more important is the "flexibility" of the Chinese employees. In 2007, Steve Jobs found defective iPhone screen factory in Shenzhen in the middle of the night emergency collection 8000 workers within half an hour job 12 hours a class for the iPhone screen for. "China miracle" in the United States let alone in other developing countries may not be done. Culture and institutions created by the so-called low-cost, overseas may "failure". The two core competence is to buy the lowest Shenzhen Special Zone Daily: If you want Chinese enterprises' overseas M & A Weapon, would first think of what strategy?
Ding Yuan: first of course is to buy cheap. I have recently written the case of four-dimensional Johnson. Its armored car is very well known, has acquired an English armored car companies and a German high-end ambulance manufacturers. CEOs of companies claiming to "guilty of all overseas mergers and acquisitions of Chinese enterprises is easy mistakes." For example, the airborne two "returnees" can not be qualified for senior positions, the locally recruited executives corruption, and so on. Bad thing, but mergers and acquisitions last to be successful, because the acquired company to buy the lowest, room for maneuver. Chinese enterprises in overseas mergers and acquisitions do not make mistakes is impossible, but getting a low price is possible.
Two factors affect the purchase price, one time, one state of mind. I an EMBA students' acquisition of a German machine tool plant. Dealing with German over 10 years, http://www.cheapnfljerseysebay.com