Managing strategic risk in China’s unpredictable automotive market

The saga of Tian River Motors

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Strategic long-term planning is invariably hampered by uncertainty. Strategies with the greatest possibility of success also have the highest probability of failure. Automotive companies operating in China are not immune to such uncertainty. In fact, they face a number of questions when trying to craft a strategic plan for the long term:

Will alternative fuels replace petroleum usage in the future?
How long can China sustain its unprecedented economic growth?
Is government protectionism increasing or will China become more liberalized?

In a hypothetical case study, Tian River Motors (TRM) devises a strategy to mitigate long-term risk and provide strategic flexibility. By reallocating decision-making responsibility and embracing an innovative approach to strategic planning, the executives at TRM take the inside lane and position their company to move from middle of the pack to leader.

Deloitte provides this practical case study with real-life application for companies wanting to minimize strategic risk in China's unpredictable automotive market. Learn more from the full report, attached below in PDF format, and read Michael Raynor’s thought-provoking book The Strategy Paradox for a unique view of strategic long-term planning in an uncertain world.

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Managing strategic risk in China’s unpredictable automotive market: The saga of Tian River Motors (381.31 KB)

Published September 2007; 17 pages; A Deloitte Research Global Manufacturing study.