Case ID 12-1033
Published 2012
Industry Code 269
Subject General management

Abstract Partner Subcontracting Corporation (PSC) is a mechanical engineering industry subcontractor which has its' main operations in Finland and Estonia with several smaller factories in Eastern Europe. With some sourcing activity from China since early 2000's they have been looking into a way to start their own production in China. Deciding to proceed with a fully owned subsidiary, PSC founded its own production company and opened its factory in the Anhui province in June 2012. The current country manager plans to retire in late 2013 and it still waiting the company to appoint the next manager. The challenge to grow the factory to meet the financial goals and corporate standards - all while making sure there is a smooth succession in 2013. Now in the early August, production has yet to start with different challenges at every turn. Machines with insufficient specifications, difficulty to find the right personnel and long material supply times. Local officials and companies are eager to make contact with the new company, but for what gain?
Pages 15
Teaching Note Yes