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Pages:
2 pages/≈550 words
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Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
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Topic:

Gobi Partners and DMG in Internet Technology

Case Study Instructions:

(1) the primary question(s) asked in the case, (2) the factors relevant to evaluating the case and reaching a conclusion/recommendation, and (3) your recommendation to the case problem/issue(s). Your recommendation should take a position or suggest a path of action. You should be able to defend your recommendation based upon the information provided in the case.

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Gobi Partners and DMG
Gobi Partners had an idea of introducing an internet technology company to provide for networking and digital services (Hardynom et al. 1). Their motivation was from the increasing use of mobile phones, the rising freedom of information in China, and the availability of reliable opportunities. The growing Chinese economy was beginning to embrace digital technology in their jobs. One of the advantages they relied on was the subway advertisements using different techniques like sub-soaps lasting for 30 minutes. Linking up with the local authorities was an advantage, as they planned on taking up new subway lines for their targetted audience. These led to an increase in their human resource due to the volume of work. But, there was a pending problem in management and expansion formula.
Relevant factors leading to the evaluation of the case include the coarse relationship between the company and the municipality authorities, the low pricing arising from their new CFO, lack of proper preparation on the process of hiring a valuable CEO to steer the company ambition, and giving a more westernized approach to business than what the Chinese market was ready for. These factors were derailing the success of the company by reducing their command of the business opportunities, lower returns, not grabbing any more chances and business partners, and losing clients to other companies that offered familiar business models to what Chinese knew (Hardynom et al., 17). As a result, the company needed to change these aspects that were negatively influencing their business to change their fate and continue with profit-making trading structure.
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