1. Kindly write the brief synopsis of the case in your words? Ans.

ASIMCO Technologies Limited was founded in

1994. The Company supplies competitively priced high quality products to both the China and global automotive markets. With Headquarters in Beijing, ASIMCO Technologies makes a wide range of products, including fuel injection systems, a wide range of power train, chassis components, rotating electrics and NVH products. With more demanding and strict government requirement on fuel economy, emission standard and safety and the deep understanding of China market, ASIMCO gives the highest priority to new product development and also upgrades its product profile. Therefore, ASIMCO strengthens the research and development in fuel systems which common rail included, expanded power cylinder components (pistons and piston rings), stop/start starters applied to hybrid electric vehicle, iron block machining capability, air management systems which twin-cylinder air compressors included, engine exhaust after treatment, and engine braking systems. At initial time company face lots of problem related to management issues, At initial foreign investors gets limited Chinas human capital. Political issues Corrupted Chinese managers To be succeeding in China ASIMCO model is adopted by

company as follow: Restructuring: deal with power struggles, effective use of operating control Relation with political parties Growing talent from within: Create unique management culture Create new vision: with 3 component Core values, Core purposes & Goals. Development & implementation of management tools: Incentive compensation: Reward according to increase equity Quarterly general managers meeting Training Performance management The leadership development programme (Acceleration group) Commitment & Trust

2. What are the ASIMCO is facing? Ans.

IHRM

Issues

that

Political skills, rather than management skills, were honed in these SOEs. They were neither trained to market products nor exposed to competitive practices in the global marketplace.

 These managers had wide discretion in running firms and were more willing to take risks. ASIMCO had negative experiences with these entrepreneurs. Those managers whose only experience was with a SOE tended to be highly bureaucratic, while managers of privately owned companies tended to be uncontrollably entrepreneurial and wereless loyal.

3. Can the ASIMCO model be adopted by all MNC companies? Kindly support your answer with reasons. Ans. This ASIMCO model is different than the US, UK or
Japan. ASIOMCO model is only for to develop in China. Some of the factors can be adopted by other MNC. If we talk about other MNC companies in China which have adopted this model shows speed up in localization process. Learning from ASIMCO model mainly is Competitive advantages of group System of fast tracking future leadership

 To take care of problems can arise due to localization are: New leaders might not be enough skilled & able to decision making to respond to quickly to the market. If they did fail, it could be demoralizing for the next generation. Another issue is search for competent people. With the speed & momentum of reform, demand for competent personal is greater than the supply. So success need continues motivation & retention of the employees.

BY: Abhishek Mishra ISBE-A//SS//10-12 SB-4/HR