Each on-site analysis involved interviews with plastic plant personnel, managers, warehouse workers, customer service, and laboratory workers. Off-site primary interviews involved travel to industry leaders, salespeople, resin and additive suppliers, distributors and customers.
Data supplied included business description, organization chart, product offerings, research and development activity, manufacturing capacity and utilization, and production cost structure. Marketing data included product gross margins, earnings, customer base, market position, sales channels, marketing plan, pricing strategy, logistics, and supply chain partners. Production cost structure involved labor, raw materials, utilities, packaging, maintenance, and other plant overhead costs.
Primary Impact showed the trends towards 100% foreign owned companies in China, detailed the drawbacks of a partnership, suggested starting with a U.S. business manager and leveraging information provided in the detailed site analyses.
U.S. owned Plastic Business in Chinese town
The client started a wholly owned "business" in Southern China and modified their business plan especially in the areas of procurement, logistics, and sales channels. Click to learn more about Primary Impact's plastic industry practice.