1 Executive Summary
This report is regarding How a foreign company; Uniqlo institution which is subsidiary company of Uniqlo Ltd, can approach to poverty in China on the basis of a Prahalad’s approach. First of all, to cover all of the rural area in order to provide the services as much poverty as possible for the reason of the effectiveness, efficiency and economics of scale to maximaize the benefit and reduce the cost. In order to accomplish it, small and medium size of schools and factories need to be established and teacher are appointed from the factory workers who have a certification of education so that effectively and efficiently and also affordable for rural people to join school. ...view middle of the document...
This is latest and novel business model whose purpose is that the firm can properly can employ the desired staffs effectively and efficiently in the future.
2.2 The services information & the reasons of investment into China
The total population of China is approximately 1.3 Billion which is distributed 0.55 Billions in the major cities located mainly east coast and 0.75 Billions is in rural, isolated areas. Usually people in rural and isolated areas seek work in major cities all the seasons but especially during winter season. However, majority of them hardly find a job and cannot afford to even travel to the nearest major cities.
This report expresses that if Uniqlo Ltd can provide the education not only to people who want to work in the industry field in the future but also to people who is at the bottom of the Pyramid as well as training and fostering them as future Uniqlo’s manufacturing and collaborated companies staffs and managers. However it raises some of the questions.
1: Are Affordability, Access, Availability taken into account?
2: Economic scale, innovation, efficiency and effectiveness need to be taken into consideration.
3: How can it generate benefits as well as improving poverty’s life support?
My idea of this new approach is that the organization offers mainly two majors. One is for the students who want to learn the business and another is for the students who want to work at Uniqlo Ltd, Uniqlo factory and/or at the collaborated companies in the future. The latter offers very specific subjects such as what is Uniqlo Ltd and how it work, what the business in and so on so that when graduating, the students can work as industry staffs as future team leader and managers. It is also possible that Uniqlo Ltd collaborate with competitors for the purpose of training and fostering the students for the future employee of competitors’ companies.
The further detail will be discussed later on in C.K. Prahalad approach section.
3 Country factor analysis
Various country factors need to be taken into account in order for the investment to the establishing new business in China; Economic, Legal, Political, Cultural, Religious and Education environment /factor. The followings are regarding Chinese country factors as well as the possibility how it would affect to the new business in China.
3.1 Political System
First of all, the political system in China should be elaborated on because its system shapes the economic and legal systems and so forth.
There are some discussion whether purely totalitarianism or not. In my opinion, Chinese political system would be not purely totalitarianism but still mostly leaning on totalitarianism. However, having said this, nowadays its political system has been changing very slightly and changing would be necessity to become the developed county.
If Chinese political system was purely totalitarianism, the investment of the new business for...