Business Case Study: Shenzhou International's Global Operations

This case study analyzes Shenzhou International, a leading apparel manufacturer, examining its evolution, strategies, and responses to global market dynamics. The study explores the company's adaptation to changes in the textile industry, including value chain management, bargaining power, geographical location, and institutional roles. It details Shenzhou's operational successes, including direct action plans, improved socializing practices, and management leadership. The analysis incorporates Vernon's product life cycle and transaction cost minimizing approaches to understand the company's growth. Furthermore, it discusses the rationale behind Shenzhou's expansion into the US market and the impacts of the COVID-19 pandemic on the global economy and the company's operations, including fiscal and monetary policy responses. This case study offers insights into the company's business model and strategic decisions within a dynamic global environment.

Case study of Shenzhou
International

Table of Contents
PART A...........................................................................................................................................3
Review the case of Shenzhou International............................................................................3
Answer to Question 1.............................................................................................................3
Answer to Question 2.............................................................................................................4
Answer to Question 3.............................................................................................................5
Answer to Question 4 ............................................................................................................6
PART B............................................................................................................................................7
Global economy and its impacts of the Covid-19 pandemic.................................................7
Answer to Question 1.............................................................................................................7
Answer to Question 2.............................................................................................................7
References........................................................................................................................................9

PART A
Review the case of Shenzhou International
Answer to Question 1
In the textile and apparel industry, the changes are happened from the last few years, this
industry has been changes as per the aspect of both financial and technological aspect. This has
been changes as per the view of social and political scenario of global economy at high level. In
the apparel and textile industry main beneficiaries countries were China, Bangladesh, Vietnam,
India etc. The changing global trend of the company are related to various factors which are
related to value chain and cost, bargaining power of player, Spatial and Geographical location,
and many of the institutional role of the country (Barua, 2020). All of these factors get the
impact on the apparel industry. Some of them are explained below:
 Value chain and cost: Global value chain and cost of the organisation within apparel
industry will be make a strong impact. This will analyse the impact of all activities which
are relatable for apparel conception, different stages of designing the material, various
raw material, marketing and distribution of final consumption. The need of large value
chain make an impact on the textile industry as they are buyer driven industry and work
as per the concept of buyer that contain three type of lead firms which are retailers,
marketers, and branded manufacturer. For example, in Shenzhou International, they
spend more than one and a half month, for sourcing the fabric, which indirectly increase
the sales revenue of the company within global market.
 Bargaining power of players: While working in the global trends there are various
sources which get high impact on the bargaining power. Bargaining power of the supplier
and buyers are able to conduct for assuring the concept of improving production china
base within china. China is ready to export their apparel exports within United state and
many of European countries (Bian and Zhao, 2020). This will actually depends on the
trade restrictive measures where the chosen company make their decision on the basis of
their buyer and sellers production units. In shenzhou international organisation, they try
to expand different organisational behaviour in order to provide relevant growth and
success in apparel market.

 Spatial or geographical location: The geographical location of the production in textile
and apparel industry. This industry is changes as per last 25 years and make lots of
employment opportunities within textile industry. There are large spatial and
geographical location within all over the world (Zhang and et.al., 2020). The shenzhou
international organisation spread their geographical location within an area of US, Europe
and whole south-eastern Cambodia. They are spreading their business at the global level
as per the recent trend working within society. In 2013, with the 10,000 staff it become
the world largest Chinese apparel manufacturing industry.
 Institutional role: Another development which are arises due to major governmental and
legal structure. Their are lots of government and legal interference within an organisation
which are expanding at the global level. So it become a trend for the company to work in
the institutional role which are somehow beneficiaries are sometimes create issues within
an organisation. In shenzhou international organisation, this is important to use trade
relationship among different countries (Haleem, Javaid and Vaishya, 2020). They are
using Tarns-pacific partnership, which make a significance influence of the company in
china. TPP was a duty free agreement, which make a benefit for the company. With the
help of TPP agreement, company can easily create the job opportunities and make more
productivity through the state of partial or geographical location: authorised level.
All of these are relatable and appropriate for the growth of company which make suitable
success within an organisation. All of these are relatable for developing sector within an
organised manner.
Answer to Question 2
From the finding in 1990, shenzhou international group with small clothing manufacturer
for the world of leading apparel supplier. There are lots of thing which are used and manage by
the organisation in order to work in an different offering services. They are related to some major
electronic and sustainable approaches, which are related to engineering in the from of
electronics. Their main success is mainly related to proper training, development which are
related to business's life cycle (He and Harris, 2020). They will further make some appropriate
approaches during some training and relevant issues. The main factors which are used by

company for completing major success role with the area of successful. Some of the factors
which are described below:
 Direct and possible action plan: It is discover that they are use direct plans which are
helpful for the company to make possible action plan and work according to that. This is
again important for the shenzou international markets is to make appropriate steps for
measuring success. They will need to complete the need of customer, as per the goal of
marketing team and needed to make sustainable growth in minimal the time rate.
 Improvement in socializing practices: This is one of the important source of the
company, as this are needed for improving communication and motivation for assessing
the growth of company within market (Shen and et.al., 2020). They are trying to solve the
basic problem and management of on board solution, one-to-one discussion, and proper
meeting organised for some major growth of company.
 Manage leadership: In the chosen organisation, it is important for the prospect of
accomplishing the major concept which is related to their management system. Their
management team will be work as the major factor which are needed to be accomplished
due to some created management leadership (GU and WANG, 2020). There are different
majors which are work in an operating success of company. Further some market level
opportunities are reliable for the growth and need for completing their employee's
effectiveness and performance for increasing success within market growth.
Answer to Question 3
For the growth of company they are trying to use best approaches which are suitable for
the growth of company at reliable approaches. Mainly two main theories are conducted for
completion of the project. Which are Vernon's product life cycle and transaction minimising cost
approaches. These two approaches relatable for the growth and increase efficiencies of the
company.
International product life cycle which was developed by Raymond Vernon in the year
1966 this is the model which is related to the economic and marketing concept of shenzou
international marketing relation. There are mainly three stages which has been used by company,
as introduction, growth, maturity and decline (Sułkowski, 2020). First stage is introduction stage,
where the respected company introduced their products successfully and create the demand in

the market of china and other overall sectors. Second stage show the demand of the products
and increase the sale related to high demand and profits. Their are lots of competitor of the
respected company big textile industry. Third stage is the maturity stage where the company are
trying to be secure and manage their applications and widely serve their production within the
market. Here the price of their products to supplier and customer is as low as possible. Fifth
stage is decline stage; this is the stage which is facing by the organisation (The Three Stages of
the International Product Life Cycle Theory, 2021). As company face downwards but at the same
time their impact and strategies are reliable for major growth and success.
In the transaction cost minimising approach company are using different strategies which
are related to substantial cost approaches (Xu and et.al., 2018). They are using minimising waste
reduction, sustainable approaches for the long period of time. Further they are using, search and
information cost, bargaining and reduction cost and mainly different policies and enforcement
cost. That may affect the growth of company with the sustainable and reliable approaches.
Answer to Question 4
Although the shenzou international company are established within various market. And
areas, but the new venture which are established by them in US are one of the important concept.
The main reason for expanding their venture within the market is related to establishing cost of
building in US is not as much higher as compare to china (Lu, and Bouey, 2020). Most of the
economist found that the china's manufacturing cost is 96% more than the US manufacturing
cost. Another reason for choosing US is to use their legal structure which is solid and stable.
With the main concerned of employment, US government makes high growth impact on the
growth and job opportunities within their local areas. Third and last reason is to US co-operation
with shenzou internation create more key accounts which are related and contributing to
branding and strategic planning approach (Yang, 2021). Further there are some potential obstacle
which are related to US market. Their legal structure, business area, labour and employees are
related to different standards. This is related to make overall strategic courses which are suitable
for the growth of company and its venture planning.

PART B
Global economy and its impacts of the Covid-19 pandemic
Answer to Question 1
The major outbreak of Covid-19 is related to the particularly international trade, while the
infection is arises in china and global coronavirus which are related to first quarter of 2020. the
impact of covid-19 will make a strong impact on society and that was relatable to the aggregate
demand and supply of country (Wu and Olson, 2020). The relevant meaning of aggregate
demand and supply of china is subsequently related to consumption, investment, government
expenditure and the net export. This major impact on lowering the growth of GDP which are
related to 2020 for approx. 5.4% (PricewaterhouseCoopers: Macroeconomic Impact of the
COVID-19 in China and Policy Suggestions, 2020). In terms of consumption of china, the
outbreak comes before spring festival and this will make the huge impact on growth of
consumption. Here the national retail industry will be make a high reach on the sites, so it will
make an impact on china's GDP and Growth rate. In terms of investment china was unable to
make production on the time and on going production order for their cancellation. Investment
was suffered as the consumption of the country which has main reason for overcapacity
prevalent within china and their manufacturing company.
Due to the major impact on growth and development of different outbreaks that are
related to different implementation (Zhao, Qiu and Wang, 2019). This is related to first phase of
Sino-US trade war, as it will related to the impact of foreign direct investment and suffered a lot.
All of these are related to aggregate demand and supply of the china which are related to some
major theories and applicability of the country that had been affected through the covid-19
impact in 2020.
Answer to Question 2
This is very important for the country that may use different type of fiscal and monetary
policies. These theories help the country to work effectively in order to recover from the
devastating effect of this pandemic (Rose-Redwood and et.al., 2020). The fiscal policy that
measure and announced for increasing spending on epidemic prevention and control, different
production of medical equipment and many tax relief which are related to many migrant

workers. Further they are using many equipment which are helpful and relevant for the growth of
budget support within the country. Due to major outbreak of company related to additional
guarantee which are used for roads, ports and electricity department of their own support (Policy
Tracker, 2021).
When it comes to major monetary policies this has been related to the concept of major
policy support of country with some major market stability. This would be include major
liquidity injections into the china's banking system. Expansion of re-lending and re-discounting
facilities which are reliable for increasing medium term facilities (Zhang, Hu and Ji, 2020). The
china's government is also related to multiple steps while tightening the financial condition of
the country. All of these facilities are applicable and reliable for increasing IMF funds and
MDBs bank, major allocation of special drawing rights, and many more which are related to the
major potential investment of the country that may reduce the impact of pandemic impact of
covid-19.

References
Books and Journals
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production and countermeasures from an agricultural insurance perspective. Journal of
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Online
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The Three Stages of the International Product Life Cycle Theory, 2021. [Online]. Available
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