Phase Separation Solution (PS2) was incorporated by a group of Canadians, with a view to apply advanced clean technologies and cleaning up the environment. They have good experience in hazardous waste management, technology development and environmental engineering which formed the foundation for PS2 (Peng and Beamish 2012). Presently the company is operating in a domestic market, but now planning to go International by entering in Chinese market, where environmental pollution is a major issue and effecting productivity of the work force. People are dying because of pollution and so the environmental treatment has become a necessity in China. Entering in to Chinese market will both be an opportunity and challenge for PS2 (Peng and Beamish, 2012). The company needs to analyze the situation involving cultural analysis and PESTEL analysis to come to the solution.

The issues identified in the PS2 case are as follows:

1. Whether PS2 should enter into the Chinese market or not?
2. Amongst NIES or Nahai, which option should be pursued by the company?
3. How much feasible is to pursue both the option?
4. What ownership level is need for each option?
5. Staffing in Chinese operation by PS2?
6. Does the company possess the required resources and capabilities for such an expansion?

PS2 needs to undergo detailed internal and external analysis of the company to develop a right strategy for expansion. There is the requirement to develop cultural analysis and PESTEL analysis for the firm to expand.  PS2 requires complete macro and micro level analysis of the industry to judge the opportunities and threat present in the market and also to find solutions to deal with them.

3.  cultural analysis

The cultural analysis of an organization is required to understand existing culture and its effect. The cultural web includes behavioral, b physical and symbolic manifestations of a culture. Culture is something that is taken for granted in a society or the organization (Gerry 2001). The culture mapping is required for any organization for questioning the taken for granted aspect of the organization which is rarely questioned by any one, to investigated the barriers to change and how much the aspects of existing culture are in line with the company’s future strategies, and finally to understand what new changes are required to for delivering of new strategy. So culture mapping is required to understand changes required for fulfilling company’s future strategies. Cultural web is used as a tool for culture mapping which is as follows:

Source: Mind Tools, “The Cultural Web: Aligning your Organization’s Culture with Strategy”, (Ltd 2012)2012.

• Paradigm: the core of the analysis will be the set of assumptions for PS2, and which is taken for granted by PS2. Which are:

1. proper application of clean technologies
2. Safe management
3. Environment cleaner

• Stories: It would involve the aspect of about what is company famous for. About what PS2 is being discussed about? It is the mobile technology which the unique thing about PS2, they don’t have to carry waste from here and there, but their TPS technology could be taken to the site for environment cleaning. Mechanism of technologies is akin (Peng and Beamish 2012).
• Symbols:  Phase Separation Solution, also known as PS2 and TPS Thermal Phase Separation technology. PS2 is known for TPS technology and TPS for PS2.
• Power structures: The CEO of the company Paul Antle, acquires the most powerful position in the company. He is good in networking and building contacts, which is highly beneficial in handling competition.  He is highly experienced and very well recognized leader in Canadian environment and waste management industries also known to be a serial entrepreneur (Peng and Beamish 2012).
• Organizational structures: It is the kind of organizational structure of the firm (Ltd 2012).  The team comprises of CEO- Vice president of business development – CF0. And below them are more 15 employees. It is a flat structure (Peng and Beamish 2012).
• Control systems: Here the company’s strongest and the weakest control systems need to be listed. PS2 has strong control over market, and exists in an oligopoly, that is there is only one competitor in the market. It has its unique TPS technology famous for it mobility in performing. But the capacity of PS@ would be affected by the economic changes as people would not like to spend much on remedial measures if the economy goes down. So PS2 needs other markets to capture to utilize its capacities.
• Routine and rituals: Routines and rituals involve the elements that are being expected from the company by its customers, employees (Ltd 2012). It is the way things are being done around (Gerry 2001) which lubricates the working in the organization.

1. Political: The first issue to be dealt will be political issues involve in the industry. Due government strict rules for hazardous waste management, land disposal restrictions etc has created demand for PS2s technologies. The Chinese government is taking serious measure in cleaning up of environment (Peng and Beamish 2012). The government has regarded environment protection as a basis state policy.  The government of China is also spending high in the removal of hazardous chemicals from the environment, which would be highly beneficial for PS2.
2. Economic: The economic factor would include the currency rates, inflation rates, taxation policies of the country, exchange rates. Inflation may provoke employees to demand for higher wages (Gillespie 2007). If higher interest rates of China, then investment cost would be high. Huge market for oil sludge and POP, pharmaceutical waste, but the country as compared to the other developed countries is not much advanced presently in remitting waste from the environment (Peng and Beamish, 2012). And also rapid economic development of China (Peng and Beamish 2012)
3. Social: The Company is planning to go global, so it will definitely has to face some changed social beliefs and behaviors. The different attitude and behavior of the population in China as compared to that of Canada could lead to staff related issues. PS2 needs to understand the social and cultural beliefs of the country’s population and their working technique is also to be take care of
4. Technological: Chinese market in very innovative, presently there is huge demand for PS2 TPS technology, for remitting hazardous waste from the environment. The mobile technology of TPS is highly beneficial for so many small- small sites in China, as it is not possible to transport bulk amount of contaminated sand from one place to another. The company is having two options either to go JV with NIES, the technical provider which is government agency or cooperate with Zhoushan Nahai Solid Waste Central disposal Co ltd. Both have their plus and minus, and PS2 can opt to go with both or decide to enter with one. But entering with JV with NIES will be safer.
5. Environmental: As PS2 is involved in cleaning of environment, there’s not much environmental issues, but transportation of contaminated mud would not be allowed from one place to the other for clearing hazardous chemicals (Peng and Beamish 2012). The government of China is funding huge amount for environmental cleaning which would be beneficial for PS2.
6. Legal: Legal issues are related to the legal environment where a firm operates. Initiating in to a different country and in a different environment could lead to such issues. But PS@ has an option to avoid such issues by entering with a joint venture with NIES which is government agency and a technical provider for policies, legislation, technical guidelines and action plans, which could make the company’s job easier.

1. Good networking with senior leaders in the industry and political leaders of the state (unknown nd).
2. He should be updated about the market trends of China and rest of the world.
3. Must be aware of technological changes taking place in the industry.
4. The company is required to understand the organizational changes before going international.
5. Both the opportunities in the China market (NIES and Nahai) are highly prospective, but PS2 should not neglect the NIES opportunity as it is safe and involves government in to picture, so PS2 will saved from legal and political issues. As this is the first time for the company to taking a step towards a different step so its need to be alert and careful.
6. The social aspect is also important as two different cultures are going to work together, so the employees are required to be trained about both the cultures, the Chinese and Canadian.

PS2 was a small firm in Canada, but with efforts of Antle is now wide spread in North America. The company has now the opportunity to go global and mark its presence in the international market. Though Chinese market is developed but they don’t have highly advanced technologies to clear environment, and the population is suffering due to the pollution. So, the government there is now active to clean the environment at any cost. PS2 got the opportunity to enter the market and is being preferred for its mobile TPS technology and networking.

Even though the opportunity is great and has growth option but PS2 needs to be prepared before entering. It requires complete macro and micro level analysis of the industry, market and country, to avoid any mishaps.

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