Research Paper on:
STS MANUFACTURING IN CHINA: A CASE STUDY

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manufactured components for automotive steering assemblies, and was also a supplier to Volkswagens joint ventures with the Shanghai Automotive Industry Corp. and First Auto Works.  In this paper, well analyze the challenges faced by Mark Hanson, a young manager working with STS and the issues he faced in dealing with the Chinese.  Environmental Analysis In describing the environment of China in which to do business, the case study first described Chinese history. On the  one hand, the Chinese have had a wonderful history of technological advances (including paper money, fertilizer and the printing press). On the other, China is a country characterized by feudalism,  civil war and frequent takeovers by outside forces. During the latter half of the 20th century, China has been under a communist regime, rife with state-owned enterprises and strict government  controls. Also characterizing the Chinese environment is a definite suspicion (stretching centuries back) of anything Western, from trade to businesses. During the  later part of the 20th century, the Chinese government has begun opening borders (albeit reluctantly) to technologies and skills from the West. For one thing, restrictions on products to be  produced relaxed a great deal. The move toward a "market economy" from one that has been state-run has been slow, however -  and the Chinese have been cautious about immediately taking on and adopting Westernized business practices and thinking. As a result, by 1997, privatization continued to lag behind (though incentives in  business were starting to be introduced), with certain business decisions remaining in the hands of government planning authorities, and factories remaining under control of ministries at the local, provincial and