Case Study
Background
A company made a multi-million dollar investment in one of the major cities in China in the mid 1990s. The business was successful. In 2002, the company was noticed by the city to reallocate its plant to another site due to city planning. The company found it difficult to allocate to another site under the given reallocation budget. Meanwhile, it found its Chinese Joint Venture partner had sold the land used for the plant without approved by the board of the joint venture company. The bank told the company that the bank loan was not approved any more to fuel its working capital due to lack of collateral.
Analysis and Teamwork
We were asked to provide an in-depth analysis of the situation and provide a strategy on resolving the pending issue. We started our work by investigating the facts and government procedures. We uncovered that the parties that the client was negotiating with over the years did not have authority to make decisions. The client had tough time to meet with city officials at right level to resolve the issue. We developed a set of strategies to resolve the problem for the client.
Result
With our help, the client was able to meet right level officials in the city. The issues were eventually resolved.
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