Farm Equipment Services (FES), the division of tractors Mahindra & Mahindra Ltd (M & M), is considering entering the Chinese industry tractor through a joint venture with Jiangling Tractor Company (JTC), state motor company. M & M was seeded into the Chinese market with the export of tractors and came to the conclusion that the most effective and reasonable way to serve the Chinese market was a tractor through a joint venture with a local partner. JTC was a good brand recognition and a strong position in the market of small tractors. However, due to the lack of interest on the part of the parent company, Jiangling Motor Company Group, JTC face serious operational problems, was working too, have high overhead costs, significant amounts owed to suppliers and dealers were running the company. M & M saw an opportunity to work with the management team, they were happy and attract potential JTC to growth in China and export of tractors and components. The challenge is to determine how management should proceed with the restructuring and integration of joint assets. "Hide
by Jean-Louis Schaan, Ramasastry Chandrasekhar Source: Richard Ivey School of Business Foundation 18 pages. Publication Date: March 15, 2007. Prod. #: 907M35-PDF-ENG
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