SAP: Establishing a Research Centre in China Description
Leading technology companies from around the world are entering China to establish research centres, leverage China's unique situation of rapid growth and large manufacturing base, and scooping up talent from China's leading universities. SAP, the world's largest application software company, recently entered China to establish one of its exclusive technology research centres, SAP Research. While this division has been successful at its headquarters in Germany, the Chinese labor market and business environment remain difficult for foreign multinationals to navigate. Foreign companies often experience challenges ranging from difficulty finding innovators in a competitive talent pool to dealing with turnover of employees that have an aggressive focus on compensation. There is concern that locating in Shanghai, far away from the innovative hotbed of universities and other technology research centres that have set up shop in Beijing, was the wrong choice for SAP in China. What would be necessary to win the war for high-profile PhDs in the competitive Chinese labor market? What would be required for SAP Research China to be an integral contributor in SAP's worldwide innovation network? This case illustrates the opportunities and challenges of research and development ("R&D") globalization and familiarizes students with the unique challenges of R&D strategy, new-market entry strategies, human resource management, innovation, clustering and intellectual property protection in rapidly developing countries. In particular, this case is relevant to studies in R&D globalization, business in China and talent management.
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Case Analysis of SAP: Establishing a Research Centre in China
SAP: Establishing a Research Centre in China is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. SAP: Establishing a Research Centre in China is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. SAP: Establishing a Research Centre in China case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. SAP: Establishing a Research Centre in China will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
SAP: Establishing a Research Centre in China
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of SAP: Establishing a Research Centre in China, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The SAP: Establishing a Research Centre in China case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Global Business Solutions
In the Texas Business School, SAP: Establishing a Research Centre in China case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – SAP: Establishing a Research Centre in China
Step 1 – Problem Identification of SAP: Establishing a Research Centre in China - Harvard Business School Case Study
The first step to solve HBR SAP: Establishing a Research Centre in China case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Sap Research is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Sap Research, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the SAP: Establishing a Research Centre in China.
The external environment analysis of SAP: Establishing a Research Centre in China will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in SAP: Establishing a Research Centre in China case study. PESTEL analysis of " SAP: Establishing a Research Centre in China" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with SAP: Establishing a Research Centre in China macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for SAP: Establishing a Research Centre in China
To do comprehensive PESTEL analysis of case study – SAP: Establishing a Research Centre in China , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact SAP: Establishing a Research Centre in China
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on SAP: Establishing a Research Centre in China
Government policies have significant impact on the business environment of any country. The firm in “ SAP: Establishing a Research Centre in China ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Sap Research is operating, firms are required to store customer data within the premises of the country. Sap Research needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. SAP: Establishing a Research Centre in China has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Sap Research in case study SAP: Establishing a Research Centre in China" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Sap Research in case study “ SAP: Establishing a Research Centre in China ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Sap Research in case study “ SAP: Establishing a Research Centre in China ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on SAP: Establishing a Research Centre in China
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ SAP: Establishing a Research Centre in China ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Sap Research can compete against other competitors.
Government Scheme & Subsidies Impact on SAP: Establishing a Research Centre in China
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at SAP: Establishing a Research Centre in China case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on SAP: Establishing a Research Centre in China
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Sap Research needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact SAP: Establishing a Research Centre in China
Social Factors that Impact SAP: Establishing a Research Centre in China
Technological Factors that Impact SAP: Establishing a Research Centre in China
Environmental Factors that Impact SAP: Establishing a Research Centre in China
Legal Factors that Impact SAP: Establishing a Research Centre in China
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in SAP: Establishing a Research Centre in China case study. PESTEL analysis of " SAP: Establishing a Research Centre in China" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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