Strategic Partnership Analysis: Shuanghui International and Smithfield Foods

PART A

1. With reference to the academic literature and using your analysis of relevant environmental factors, suggest the most important external issues and trends driving the partnership of Shuanghui International with Smithfield Foods. In which areas are the expected internal benefits and synergies for both companies? Why are the Chinese and the US governments involved?

(20 marks)

2. With reference to the academic literature, how would you describe this partnership? Explain the risks associated with this choice of partnership. Compare and contrast this choice with Smithfield Foods previous partnership with Jorge Mazon and Fernando Hernandez of Mexico. Justify your view.

 (20 marks)

3. By applying appropriate theory and using evidence from your research of these companies, analyse the national and corporate cultures involved. Speculate on the impact of both on this ‘partnership’ between Shuanghui International with Smithfield Foods.

(20 marks)

4. Drawing upon academic literature and theory, critically discuss the possible effects, both positive and negative, of exchange rate movements on the deal.