Manufacturing Mardi Gras Beads in China

Manufacturing Mardi Gras Beads in China

Abstract

This paper is about manufacturing Mardi Gras beads in China.  Furthermore, in the paper, you will find the description of the business STERN LLC, our entry strategy into China, the alliance and the legal status of the business, how our business will be operated HR and Financial management strategies as well as cultural, local and ethical considerations.  

Manufacturing Mardi Gras Beads in China

Mardi Gras or Fat Tuesday refers to events of the Carnival celebrations, which begin on or after the Christian feasts of Epiphany, and ends on the day before Ash Wednesday. Mardi Gras is one of the biggest parades in the United States bringing together more than 135,000 participants, 1,061 floats, 588 marching bands, 3750 total parade units and it generates more than $ 1 billion dollars in annual spending (New Orleans). Participants line the streets as floats pass by throwing beads to onlookers.  The more intricate the beads are, the more valuable they are perceived to participants.  One of the draws of Mardi Gras is to collect as many beads as possible. "Each year we send $500 million to China to manufacture the throws and products that enable us to put on the greatest free show" Estimates show that the bead manufacturing industry is about $500,000,000 worldwide," said Jade Brown Russell, a member of the Welcome Table New Orleans (Warren), In order to cash in on Mardi Gras STERN LLC has decided to manufacture and distribute Mardi Gras beads.  

Description of the business:

 STERN LLC is a limited liability corporation headquartered in New Orleans, Louisiana, whose sole purpose is manufacturing and distribution of Madri Gras beads and costume jewelry. We have decided to partner (Joint Venture) with Tony Wong, who is the general manager of Reform Plastic & Metal Factory Ltd, in the southern China city of Dongguan. With his expertise in manufacturing beads, as well as the 1,000 different varieties to choose from we feel this will be a good match for our new business. With the help of Mr. Wong, STERN LLC will provide three products to clients, which include generic Mardi Gras beads, Custom Mardi Gras beads, and costume jewelry.  STERN LLC will take care of dealing with customers as well as placing clients orders to Mr. Wong.

The entry strategy:

China is a very attractive market for foreign investors to manufacture and produce goods; along with a strong workforce and abundant amount of resources and materials, this allows foreign investors to keep their overheads low while maintaining healthy profit margins. STERN LLC has chosen the southern city of Dongguan, China to manufacture and produce Mardi Gras beads. The reason for choosing Dongguan, China is that our partner Mr. Wong already has an established factory, workforce and infrastructure in place to produce our beads. This allows us to focus on marketing, sales and, distributing our beads throughout the New Orleans area.  Dongguan also has its own port, which makes it possible to ship our beads with ease, keeping cost low since our factory is relatively close to the port.