Wal Mart is Scared, Danone Sells Out, There is a Big Meeting in Beijing, Global Business Dynamics

Sunday, October 21, 2007 3:21
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Danone Sells Stake of Shanghai Bright
While still in the middle of perhaps China’s talked about implosion, Danone has exited from its stake in Shanghai Bright. Much like the Wahaha investment, Danone had a position in Bright’s largest competitor Inner Mongolia based Mengniu. You can read the full details IHT and the Dairy Reporter article. Perhaps Danone has come to understand that while investing in firms that already have captured a large portion of the market, investing in the top 2 is not the best idea. Especially when you are trying to explain why a new product concept is not such a good idea…

The Changing Dynamics of the Global Business Cycle
The world is changing in many ways.. and fast. At Thunderbird, I learned about the history of globalization from a number of different angles, the role of trade, politics, and human movements.. and I found it all fascinating (ok.. International Econ was a bit of a snore). However, when reading the popular press and when speaking with a number of people who I need to interact with, I feel there is a bit of a disconnect.. a lack of appreciation or perhaps a lack of understanding about the process and benefits of globalization, and equally so, where we are headed. Well, for those of you who feel you are a bit behind on your academic theories put out by the IMF, I highly suggest this report. you can download the 28 page PDF here

Deciding China’s Political Future and The Communist Party of China
From CFR comes a couple of articles on the recent party talks in Beijing and China’s Communist Party. One of the leading think tanks on China, I suggest that everyone read the first articles for their take on the opening portion of the conference (Old China Hands may wish to skip over the second one) Try to read between the lines a little bit because what is being said is important to China… to you.. .and changes are coming

For a blogger’s perspective, I highly suggest going through Victor Shih’s blog, an assistant professor at Northwestern, he has put in several excellent articles on the talks… and has some very interesting insights.

Wal-Mart cuts prices on 15,000 items
I was speaking to a couple of reporters this week who were interested in learning about how the recent product safety scandals have affected American manufacturers in China. My answer, and my theory, is that they will see little impact at all. After all, WalMart and other retailers have already ordered/ received the goods.. and as such they are now bearing all the risk. so when I saw the above article, I began to wonder…. Is WalMart getting scared? Are they trying to make sure they clear the shelves…. and therefore their risk?

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