Palliser Furniture Ltd.: The China Question
(9 pages of text)
Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?
- To analyse industry competition in a complex international market.
- To learn more about making foreign direct investment decisions.
This case is suitable for courses in international business and strategic management, as it allows students to formulate and evaluate international strategies.
Canada/Mexico/China, Medium, 2003
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