Chrysanthemum and Dragon JAFCO Asia in China Case Solution

Case Solution

Within Nov 2002, JAFCO Asia, a subsidiary of JAFCO Co., Ltd., increased being the initial foreign equity finance firm to start a place of work in Beijing's Haidian Science Park. JAFCO was really the only Japanese equity finance firm operating in China. Consequently, Controlling Director Vincent Chan observed, JAFCO might be the bridge between China and japan. Yet, under that bridge the waters came out progressively uneven. Because the economic relationship between China and japan had grown progressively close, their political relations had not and several Japanese firms had began to mirror on their own persistence for China. Would capital-wealthy Japan and capital-poor China attempt to transcend their troubled history? Could JAFCO Asia be described as a catalyst for cooperation, or would its managers find their particular methods influenced by competition between Asia's two most critical nations? This mix of formal rules and informal practices that governed foreign private equity finance traders in China was complex. Opening a place of work in Beijing signified a renewal of JAFCO Asia's efforts to know these challenges and coincided by getting an acceleration in the firm's possibilities. But JAFCO's first years of engagement with China wasn't particularly effective, and without some elementary changes, there's little reason to consider that adding a real presence there'd yield better results now.

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Questions Covered

1.       General Overview of the Case

2.       Supporting Facts

3.       SWOT Analysis

4.       Alternative Solutions

5.       Stated Conclusion of the Case

6.       Recommendation