The Growing Tension Between Senior Management At Yushan Bicycles: Global Strategy Personal Reflection, UOL, Ireland

Yushan Bicycles: Learning to Ride Abroad

In March 2016, the growing tension between senior management at Yushan Bicycles (Yushan) and the general manager of its Australian subsidiary came to a head at a management meeting in Taiwan. An unexpectedly large quarterly loss at Yushan Australia (YA) led Chih-hao Zonghan, Yushan’s director of global sales operations, to consider exercising tighter control over YA. Zonghan was even more concerned about the unconventional strategy that YA’s general manager, James Hamilton, was pursuing.

Hamilton, on the other hand, felt he was responding appropriately to Australian consumer preferences and distribution channel prospects and was unhappy with what he saw as interference in his operations. He felt the parent company had contributed significantly to his subsidiary’s setback due to its problems supplying products and transfer pricing issues. He was looking for a quick resolution.

Prepare the Case in Line with the Following Questions:

1. What was the motivation behind Yushan’s expansion abroad?

2. How effectively is Yushan achieving its internationalization strategy?

3. What is your assessment of James Hamilton’s objectives for Yuan Australia (YA)? Do they fit with the company strategy?

4. What are the sources behind the problems for Yushan Australia?

5. What actions should be taken to improve Yushan Australia’s performance?