These products generate an annual sales of RMB 15 billion.

Problems faced by Sunten:

1. Increase in raw material (e.g. copper, steel) price by 2 to 3 times

When the product is manufactured, usually there will be time delay of around 6 months before the product is sent to the buyers. Hence, the differences in raw material price would affect the cashflow and profit of the company.

2. Competitors

Manufacturing industries in China is well known for its low cost production. Sunten has identified 5 local competitors. These competitors gain their market share by lowering the price of their products which would eventually affect the quality of their products. Sunten believe in superior quality of products to gain trust from the customers.

3. Internal factors

3.1. Fund/capital/cashflow
These difficulty arise mainly from the increase in raw materials price.

3.2. Employees
High turnover result in difficulty for Sunten to retain their talents

The speaker also shared with us the factors to success for MNCs:

1. Culture

1.1. Chinese believe in the concept of 'Guanxi' and 'Mianzi'

1.2. There are basic rules and regulations as well as laws for the company to follow. Be it written or unwritten, companies are expected to know it all.

1.3. Attracting local talents are they are more familiar with the local working environment.

2. Marketing

Company should plan for both short term and long term marketing scheme in order to achieve the best result in marketing the company's brand and products.

3. Market share

2 years ago, 90% of the sales for Sunten was from China itself. Now, there are 40% to 50% of the sales come from Middle East (e.g. Dubai, Iran), Malaysia, Austria and Korea. Hence, it is important to expand the company market share.

Place of visit 2 : Sun Feng San Park

Me and Lao Yao - our tour guide


Salute!!!

Eh. Dont snatch lei..

I got it. It s mine. Lala~

From left to right : Carol, Tiffany, Kezia, Me, Mingli