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Engaging in Humanities

Question 1

These questions pertain to the case study entitled, “Reinventing the Business

to Succeed in China,” by Doug Devos, published in Harvard Business Review,

April 2013, pages 41-44, in the hand out on pages 4-7 that accompanies this

examination paper.

Please answer all of the following questions in relation to the case study:

a) Identify the reasons why China outlawed direct selling in 1998. Do you

think this action was justified?

b) Discuss the differences between adopting the conventional wholesaleretail

approach of opening stores versus the direct selling approach.

What are the issues of cost, control and commitment involved for each


c) How did Amway change the “entire distribution compensation system”

(Page 43)? Did this action impact on its global corporate positioning?

d) What key lessons are to be learnt from Amway’s entry and continued

presence in China? Consider your response using Hofstede’s cultural



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