Harvard Business Review Reflection Essay

IntroductionThe expression empower Scorched Earth written by Elizabeth Economy ( ranking(prenominal) fellow for Asia with the U.S. Council on contradictory Relations in New York) and Kenneth Lieberthal (William Davidson professor of Corporate Strategy and International occupancy, the china director of Davidson Institute, and the Arthur Thurnau Professor of Political attainment at the University of Michigan in Ann Arbor, senior director of Stonebridge International, a Washington, D.C.based consulting firm, and the co-author, with Geoffrey Lieberthal, of The keen Transition (HBR October 2003)) was published in the Harvard Business check of June 2007 on the pages 88 to 96. The clause deals with the trouble of purlieual degradation in chinaw ar which is of great concern for MNEs that atomic number 18 active in, or be difference to be active in china concerning both future opportunities and risks.SummaryThe authors of this hold read the threat posed by environmental de gradation as the sterling(prenominal) risk of doing trading in china. The bother is that this topic is bargonly discussed within corporations. This is a serious mistake. Multinationals may be reside with other problems, but the Chinese government, NGOs, and the Chinese press name been concentered forthrightly on the countrys no intimacy shortages, soil erosion, lack of water, and contamination problems. The authors see that these problems ar so severe they index constrain gross domestic product growth. Moreover, it is from the MNEs anticipate to bunk a let on role in the aegis of the environment.If that does non happen, multinationals face guide risks to their operations, their workers health, and their reputations. In implementing environmental issues into their strategies, foreign firms claim to be both defensive and proactive. vindicatoryhere meat take stairs to reduce harm and proactive means investing in environmental protection efforts. Finally, this pro blem also brings some opportunities along as MNEs burn down use innovations that are designed for the Chinese market in the rest of the world. This means that mainland China affects the MNEs mental process in other important markets.ReviewWeaknesses and limitations relating to the satisfyFirst of all, the name notwithstanding emphasizes the weaknesses of China regarding environmental issues. Instead of pose the responsibility at the Chinese government, the MNEs are somewhat kept responsible. This is quite unsportsman desire and this way, the authors create a problem that in reality is way less extensive. Secondly, we would like to quote a purpose of the bindDespite the challenges, multinationals cant rifle over not to do the right thing (Economy, Lieberthal, 2007, p.96)We believe that this statement is completely awry(p) as a lot of companies that are active in China, just do not do anything about(predicate) it. They are even encouraged to do the legal injury thing by t he local governments. Thirdly, metre after time, the authors emphasize how big Chinas tempt is on the pollution in the world. However, this is quite logical as China is one of the biggest countries in the world. Therefore, this is real annoying and not really multipurpose in the bind. Fourthly, referring to the challenges described, there is no clear relationship between, for instance, the spill of water by the Chinese population and MNEs. This because MNEs cannot do anything about this issue. Furthermore, it is not really the MNEs responsibility.Therefore we consider this challenge as superfluous. (Economy, Lieberthal, 2007) Finally, the authors do overlook enough time on the idea of using their new innovations for China (concerning environmental degradation etc.) in other key markets. This is really the most important part of the bind and therefore more worry should be paid to this concept. (Economy, Lieberthal, 2007) Strengths of the article relating to the content and structure To begin with, the authors have through with(p) very well in describing the environmental degradation as a problem among a long of other problems in China. The contrast described in the instauration really attracts attention. (Economy, Lieberthal, 2007)Furthermore, the articledescribes that MNEs can actually benefit from these environmental problems as they can use innovations from the Chinese market in other important markets. This is quite a creative consideration we could never depend of. (Economy, Lieberthal, 2007) Another strong organise is that the article gives advice about how to deal with the Chinese semipolitical system. A special segment of the article is dedicated to this heart-to-heart. locomote on with the subject of structure, the article is quite well structured. As a reader, you can clearly hump between an introduction to a problem, a detailed explanation of the problem(s) and finally a part dedicated to the solutions . However, there are a equat e of things that we do not like about the article?s structure. First of all, concerning the discussion of China?s challenges (water, energy, soil erosion etc.), the authors spent in any case much time on the description of these challenges. (Economy, Lieberthal, 2007)These challenges are extensively described along with a lot of specific entropy which is unnecessary as the article does not directly describe how managers should cope with these challenges. Instead, the authors move on with discussion another hatful of risks. Then, eventually, some solutions are given. In superior general this is a good thing. However, we would rather have seen the solution along with the challenges and risks in install to improve the clarity of the article. And as we give tongue to before, the authors could spend less time on describing the challenges as all the specific data has no connection with the solutions given.Relation to the persist IIBThis article concerns environmental problems in C hina and that is a problem for all MNEs because of the point that there is only one environment in the world and we have to set up sure that does not cause unrepairable victimize to that environment. This because it crosses all borders and is not bounded to a certain location. Therefore environmental cost in China can influence business activities in other markets ascribable to, for instance, a shortage of certain barren materials. Moreover, it can limit the possibilities of MNEs in the future. Moreover, the article discusses the opportunities of China-specific innovations that can be applied in other markets. This implies the creation of a FSA. coatingOne of the things that we have learned from this article is the fact that Chinese local governments, along with a part of the population gambol a bigger role than expected in the environmental degradation than expected. We fictive that most pollution derived from MNE activity in China. Another thing that we have learned that you eventually pay a high school price for your, initially cheap business activities. After extensively analysing this article, a couple of question came to mind. First of all, the article forecasts that the environmental damage will have a great impact on China?s GDP. Quoting the article Chinas environmental problems are reaching the point where they could constrain its GDP growth. (Economy, Lieberthal, 2007, p. 90)We would like to populate if the authors, if they had the possibility, would change this statement to let it couple on the current circumstances. We ask this question because, in our eyes, the impact has not been that great. In the media, for instance, there is nothing said about the limiting factors on Chinas GDP growth. Another question that came to mind is the sidelineAccording to the article, the Chinese local governments interpret an important role in the environmental problematic cases. (Economy, Lieberthal, 2007) Doesnt this mean that the focus should lay at these governments rather than the organizations? In our eyes, these governments should be punished by transnational organizations. Such intervention would decrease the MNEs challenges significantly. Moving on to our final question, we would like to hit the sack if the authors expect that this problem will be completely solved, by either the Chinese government or another institutions, in the near future?Full extension phone listEconomy, E. Lieberthal, K. June 2007. Scorched Earth. Harvard Business Review. P. 88-96