ChinaConferencePrese ntationMaster2

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James P. Gilbert Professor of Operations Management & Quantitative Analysis Rollins College The Globalization of Chinese Enterprises: The Advent of a New Age Multinational Enterprise November 30 & December 1, 2006

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Internationalization of WuLiangYe Distillery: China’s Leading Manufacturer and Seller of Spirits and Wine

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Internationalization of WuLiangYe Distillery: China’s Leading Manufacturer and Seller of Spirits and Wine Pronounced woo-leoang-ye

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Figure 1 Map of Yibin, China Area Yangtze River and the concourse of the Jinsa and Min Rivers in Sichuan Province Yibin, China

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Figure 2 The Fenjin Tower on the garden campus of Wuliangye Distillery

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Shinning steel horse symbolizes the Enterprising Spirit of the managers.

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Figure 3 Wuliangye Spirits Manufacturers 4 types of distilled spirits, in 18 varieties1 with 50 specifications. [1 world-famous brand, 9 national brands, 8 regional brands] Entered the wine business by investing US $25 million in new plant. Ranked #1 as Best Chinese Liquor 1Reduced from 26 to strength market position.

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Figure 3 Wuliangye Spirits Toasting – The Chinese Ganbei (as in bottoms up) may go for several “rounds.” Chinese Proverb “Frequent drinking makes friends surrounding.”

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Figure 4 1996 Olympic Wuliangye Cheering Squad

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Figure 5 Logo & Flag of Wuliangye Distillery Registered in the People’s Republic of China and Taiwan.

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Company Organization

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Table 1 Summary of Past 3 years in China Adapted from: Wang, Jianmao (2006) ‘Next Five Years down the Road of China’s Long March,’ presentation at the International Meeting of the Production & Operations Management Society (POMS), China Europe International Business School (CEIBS), Shanghai, The People’s Republic of China, June.

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Table 1 Summary of Past 3 years in China

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Table 2 Largest Producers of Distilled Spirits: 2004 Sales (million 9-litre cases) Source: International Wine & Spirit Record (IWSR), 2005

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Table 3 Wuliangye Yibin Co., Ltd. Key Ratios Source: Google Finance at http;//google.com/finance/cid+68752

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Table 4 Main Business Indicators for the First Half of 2006 (all values in yuan) Source: Xinhua News Agency—Xinhua Economic News Service (2006) Wuliangye Yibin (August 9). ≈ $102 million ≈ $73.5 million

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Figure 6 Wuliangye’s Response within the Holistic Organizational Management Interface (HOMI) Adapted from: Alon, Ilan and J. Mark Muñoz, “Proposed Model for Holistic Management Interface (HOMI) in Transition Economies: The Case of China,” Working Paper, 2006.

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James P. Gilbert Professor of Operations Management & Quantitative Analysis Rollins College The Globalization of Chinese Enterprises: The Advent of a New Age Multinational Enterprise November 30 & December 1, 2006