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The Chinese State Environmental Protection Agency

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The Chinese State Environmental Protection Agency
Case Study Report

Introduction
This case study report will explore the company Phase Separation Solutions (PS2) and identify the key problems and alternatives. An analysis and application of models will then be conducted. Specifically, the five models chosen consist of a PESTEL analysis, Porters Five Forces, a SWOT analysis, the VRIN model and the organisational configuration model. An evaluation of alternatives involving advantages and disadvantages for the alternatives are then investigated. Finally, a conclusion and recommendations are presented for PS2.

Identification of Key Problems and Alternatives
Within the case study there are a set of key problems and alternatives presented. The first problem deals with whether PS2 should enter the Chinese market. To investigate this further, economic problems, regulatory problems, and the problem of potential limited markets in Canada and North America may compel PS2 to internationalise. Declining economic markets and volatile industry propensity in Canada and North America display limited sustainable future revenues and weakening PCB-contaminated soil allocation. Regulatory issues prohibit PS2 from transporting soils from the US to Canada in addition to PCBs only providing PS2 with short term momentum as PCB treatment is a declining market in Canada. Currently, in the Canadian market there is a potential limit in regards to the amount of PCB-contaminated soil and unfavourable cost advantages which may require PS2 to look abroad in order to increase their business activities. These factors raise issues of constraints in PS2s existing markets (Canada and North America) which will cause assessment whether PS2 should internationalise into China.

The second problem deals with which of the two opportunities should PS2 pursue. PS2 needs to weigh up the two options. Option one is a joint venture (JV) with Nanjing Institute of Environmental Sciences (NIES) in the remediation POP-contaminated soil while option two is

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