Case ID 12-1032
Published 2012
Industry GENERAL CIVIL ENGINEERING WORK AND BUILDING WORK
Industry Code 061
Subject General management


Abstract This case study focuses with the opportunities and challenges of Pacific Consultants Co., LTD (PCKK), the largest construction consulting company and one of the industry leading players worldwide. PCKK as a company that focuses in business ?to- government (B2G) business model and has been proved to be successful in Japan. The case shall illustrate the business strategy of PCKK in attempting to enter Chinese market. This case covers issues like the company strategies and the complex environment of Chinese market take into account the company unique business model, consumer behavior and political power influence in China. In the last 20 years, China has managed to maintain its average 10 percent economic growth every year. Currently China is the world’s second largest economy with large potential growth rate. With the rapid development of China's economy and speedy urbanization, there is large potential revenue in construction business. However, China’s communism political culture and its great influence over the country’s economy and business culture often confuse foreign companies. On the contrary, after 20 years weak economy and excessive urbanization, Japanese market now already saturated. In the face of fierce market competition, PCKK depends on its riskless business model and this model (B2G) has been proved successful in Japan market by far. However, will the company able to duplicate it in the China? Although there are evidence showing that foreign companies in China still has advantage over the local competitors by able to use its unique identity to pandering some officials political base for now; it seems that the days of relying on a foreign design company identity to earn trust of the government to be gone. In addition, because of the historical issues and ongoing territorial disputes between China and Japan, it implied greater challenges for PCKK. What could be the potential risks for the company new venture? In various difficulties and hardships, what should the company do? This case will encourage students to discuss such questions from company manager’s point of view taking into account the limitations of Japanese management culture. Since PCKK is a private company, the case is written from primary sources, interview of key principals. In addition, the reports from newspapers and the information took from company official website are also included in the case as references.
Pages 10
Teaching Note Yes