Survey on Activities of Swiss Manufacturing Companies in China with special focus on M&A

Diploma Thesis from the year 2003 in the subject Business economics - Investment and Finance, grade: 1,0, University of Applied Sciences Northwestern Switzerland (Wirtschaft), language: English, abstract: Inhaltsangabe:Summary:§Throughout the past three years, China has become the number one country for investment, attracting more foreign direct investment than the USA. New laws allow foreign companies to acquire Chinese enterprises.§Through telephone interviews the authors collected information on the current activities and future plans of 37 Swiss manufacturing companies in China. How do traditionally export-oriented manufacturing companies see this situation? What are their strategies? Do they consider Mergers & Acquistion (M&A) as a strategic option?§The paper shows the results of a survey on the China activities of Swiss manufacturing companies up to 4000 employees, conducted by two students of the University of Applied Sciences Northwestern Switzerland in 2003.§Inhaltsverzeichnis:Table of Contents:§LIST OF GRAPHSI§ACRONYMS AND ABBREVIATIONSII§ACKNOWLEDGEMENTSIII§EXECUTIVE SUMMARYIV§INTRODUCTION1§1.Goal of the survey1§2.Structure of the paper1§I.GENERAL PART3§1.Foreign Investment Forms in China3§2.FDI - New way to introduce Foreign fund in China5§3.Definition of Mergers & Acquisition (M&A)6§4.Competitiveness of Manufacturing Industry7§4.1Home base - Switzerland7§4.2Manufacturing Industry in China8§4.3Trade of the Swiss manufacturing industry with China9§II.SURVEY PART12§1.Methodology12§2.Sample Profile of Swiss Manufacturing Companies14§2.1How we defined our sample14§2.2Definition our sample companies15§2.3Profile of the interviewed companies15§SURVEY A - INDUSTRY OVERVIEW23§1.Legal forms23§2.Importance of the business in China25§3.Business activities in China25§4.Years active in China26§5.Profitability of investment in China28§6.Expansion plan in China for the coming 5 years28§7.Summary of Survey A - Industry overview31§SURVEY B - CHINA STRATEGY32§1.Consulting32§2.Market entrance34§3.China Strategy34§4.Overall corporate strategy: IR-Grids47§5.Business experiences in China53§6.Summary of Survey B - China Strategy56§M&A AS A STRATEGIC TOOL IN CHINA58§1.Attractive manufacturing industries for M&A58§2.Worldwide M&A experience59§3.Reasons against M&A in China60§4.Reasons for M&A in China62§5.Requirements for M&A in China64§6.China strategy of M&A experienced companies66§7.Recommendations for M&A in China70§8.Summary of the M&A focus part72§III.COMPARISON TO SOUTHERN GERMANY74§IV.CONCLUSION77§BIBLIOGRAPHY80§ABOUT THE AUTHORS81§APPENDIXV§1.Questionnaire sample: Survey AV§2.Questionnaire sample: Survey BVI§3.Aggregate Sector IR-GridsVII§4.Profile of an optimal consultant for Swiss companiesX§5.Profile of a China managerX§6.Recommended negotiation tactics with Chinese partnersX§7.Recommendations for Swiss SME when entering the Chinese marketXII§8.Interviews of companies with M&A experienceXV