In this edition of our IMAG global automotive fairs newsletter we want to introduce you to a very interesting study from Deloitte: Managing strategic risk in China’s unpredictable automotive market. Strategic long-term planning is invariably hampered by uncertainty. Strategies with the greatest possibility of success also have the highest probability of failure. Automotive companies operating in China are not immune to such uncertainty. In fact, they face a number of questions when trying to craft a strategic plan for the long term: Will alternative fuels replace petroleum usage in the future? How long can China sustain its unprecedented economic growth? Is government protectionism increasing or will China become more liberalized? In a hypothetical case study, Tian River Motors (TRM) devises a strategy to mitigate long-term risk and provide strategic flexibility. By reallocating decision-making responsibility and embracing an innovative approach to strategic planning, the executives at TRM take the inside lane and position their company to move from middle of the pack to leader.

Download the whole study from: www.deloitte.com/dtt/cda/doc/content/dtt_mfg_tianriver090407.pdf