Readings: Local Institutions and Global Strategy (HBS)
Playing the differences: The AAA Triangle (HBS)
Country Analysis: A Framework to Identify and Evaluate the National Business Environment (HBS)
Assignment: Be prepared to make a formal 5-minute presentation on your assessment of JAFCO in China using the two questions below. Use the other questions below to help you in preparing. Be ready to hand in your presentation by Sunday afternoon via email.
Questions for your presentation:
1. Applying the Country Analysis Framework, determine what are the “resources”, who are the organizations and what are the rules of the game in the venture capital/private equity market in China?
2. Which of the AAA strategies is JAFCO using in its business model?3.
Use these following questions to broaden your analysis for discussion in class;1. According to Managing Director Vincent Chan “JAFCO is the bridge between Japan and China.” Do you agree or disagree with this statement? Give the reasons (using evidence from the case) for your opinion. (Hint) Be sure to examine what role that “institutional voids” play.
2. What are the main risks for foreign venture capitalist (VC) and private equity investors in China? How would you characterize the formal and informal rule of the game? (Hint) Examine, among other issues, the SAFE circulars and the lobbying efforts of CVCA and entry vs. exit.
3. Why isn’t JAFCO Asia more worried about anti-Japanese sentiment in China? Should they be?
4. What role will VC and private equity play in China’s future economic development?
5. The JAFCO Asia executives seem confident in their business model (including entry mode) in China out performing Western investors. What is your assessment?
