Supply Chain

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|Case Study 2 |

|Trade document |

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|Ishwinder Singh 7332133 |

|8/1/2015 |

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1. Using the information provided in the case study, perform a brief PEST analysis for Helius when considering Chinese suppliers and manufacturers?

A very effective method of reviewing and evaluating the impact of external environment is to perform a PEST analysis. PEST analysis helps to analyze the Political, Economical, Social, and Technological aspects of any case. In this case, it helps Helius provide with rationale of considering Chinese suppliers and manufacturers.

Political aspects:

• China has a stable political environment domestically

• Discretionary copying of the proprietary information because of weak Intellectual Property (IP) protection laws

• China is opening up for foreign investments by maintaining good relationships with other nations

• The development of the industry is not planned by the government but it is based on the market demand

• Free competition and development with in the industry is encouraged by the government

Economic aspects:

• China’s economy is growing at a rapid pace

• China has become one of the highest GDP producing nations in the world

• Low cost labor is one of the key factors for its economic development

• Surging buying power of China’s growing middle class

• Increasing income levels and growing living standards...