Posted: April 15th, 2015

taking up an opportunity in RTO in China & Hong Kong

Scenario One –taking up an opportunity in RTO in China & Hong Kong

The board must gather all the facts and make a difficult decision around an opportunity to expand the training side of their business in a global context. (See story in main CASE STUDY Aitkin House.)

The situation /opportunity to take advantage of the collapse of the Australian business in China and HK has been decided and the board is considering all the relevant aspects of taking over the business inside China without previous experience in an international venture. They are aware that the collapsed training business works in partnership with a Chinese business and China has very different governance laws, regulations and ways of operating – to Australia, but needs to explore this further.

A committee of the board has been charged with investigating what are the legal structures/international regulation issues that the board need to take into account and what steps are involved.

They also need to consider their reducing cash flow the risks facing current and future work within Australia and the high volume opportunities for training delivery in Asia – especially given the recent favourable free trade agreement between Tony Abbott Australia’s PM and the Chinese.

The committee will provide a 2 page report back to the board and will discuss their findings at the next board meeting.

The board will need an agenda prepared and ensure they cover off all the appropriate requirements.