Subject category:
Human Resource Management / Organisational Behaviour
Published by:
China Europe International Business School
Length: 14 pages
Data source: Published sources
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Abstract
In 1985, Peugeot established a joint venture in South China. Peugeot introduced its management system into the joint venture, controlled key decisions and helped Chinese employees learn French and Peugeot culture. Before 1992, the joint venture enjoyed glorious days. With the increase of competition, however, many problems emerged including unsuitable car designs, outdated car models, high prices, bad quality and poor service. Its production dropped so quickly that it almost ceased operation by 1996. Moreover, the serious cultural conflicts and interest fights dimmed the future of the joint venture. Finally, the Chinese partner lost patience.
About
Abstract
In 1985, Peugeot established a joint venture in South China. Peugeot introduced its management system into the joint venture, controlled key decisions and helped Chinese employees learn French and Peugeot culture. Before 1992, the joint venture enjoyed glorious days. With the increase of competition, however, many problems emerged including unsuitable car designs, outdated car models, high prices, bad quality and poor service. Its production dropped so quickly that it almost ceased operation by 1996. Moreover, the serious cultural conflicts and interest fights dimmed the future of the joint venture. Finally, the Chinese partner lost patience.