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  1. The Lucky Dragon – Hong Kong, Special Administrative Region, China    


    Which option would they choose and why?

    a) Keep both the retail store in Hong Kong and the sourcing business in China, using the Chinese connection to source herbs for the United States parent company.

    b) Sell the retail store, but keep and expand the Chinese sourcing for the United States parent company.

    c) The business is too foreign, too risky and too fragmented to make it work. Sell it and admit that buying it was a mistake.



Subject Business Pages 2 Style APA


The Lucky Dragon – Hong Kong, Special Administrative Region, China


It requires extensive research for a company to venture into the frenzy of international business. Although current global characteristics associated with the expansion and utilization of technology in business provide leverage for corporates in mergers and acquisitions, understanding the details of foreign laws and regulations, communication and cultural differences, political risks, supply chain complexity and risks of labor exploitation are imperative (Verbeke et al., 2019). There is a need for enterprises to consider all the possible outcomes before indulging in mergers and acquisitions. The presenting case scenario gives an excellent example of the necessity of adequately evaluating business feasibility when venturing into the international markets. Based on the case’s observation, this essay supports option 3: The business is too foreign, too risky, and too fragmented to make it work. Sell it and admit that buying it was a mistake.

The success of the international business is vested in understanding and aligning to differences to cultural requirements. It is essential to understand that Anderson Products LLC’s acquisition of the Lucky Dragon carries significant cultural ramifications. That can provide limitations in terms of how Anderson Products establishes itself in the Chinese market niche. Anderson Products may have challenges in trying to meet the cultural demands of customers in Hong Kong. The analysis of the case suggests the existence of significant differences between cultural values and norms between Hong Kong and the United States. For instance, in Hong Kong, the lower rating of individualistic culture is likely to hurt Anderson Products’ position. The fact that cultural values in Hong Kong value loyalty to groups implies that working with suppliers and customers will present challenges (Eliason et al., 2016). The culture does not allow deviations towards courses that promote optimal profitability, which will harm feasibility of the acquisition.

Foreign laws and regulations are deemed as significant impediments to businesses seeking to penetrate the international market. An enterprise needs to gain a comprehensive understanding of the local laws and regulations, ranging from tax implications to trading laws. Navigating the requisites of the law is imperative to the success of a firm. Considering Anderson Products’ position and the acquisition of the Lucky Dragon, several issues emerge in terms of how the company will navigate the relatively rigid regulations in Hong Kong. In this case, it is possible to establish a reference for possible difficulties in running the business in Hong Kong due to the influence of rigid mainland Chinese trade laws (Eliason et al., 2016). Although Hong ranks high in the Global Competitiveness Index, cultural dimensions of leadership that tilts towards the elderly are likely to hurt LLC venture into market. The elderly offer limitations in navigating the technology world and it will be important for LLC to engage the young people but the aspects of culture would offer barriers. It means LLC will find it challenging to leverage on technology with the investment at Lucky Dragon.

Issues stemming from corruption are critical in defining the scope and performance of a business. Based on evaluations in Hong Kong, it is for the best interest of Anderson Products to abandons Lucky Dragon. Ed observes that corruption is a significant obstacle in Hong Kong. This means that, for Anderson Products to survive in Hong Kong, it will have to contend with a culture of corruption, which can prove costly to the overall business performance (Eliason et al., 2016). As such, corruption will eat into the firm’s profit and contribute to business unsustainable, supporting the idea of selling Lucky Dragon.




Eliason, R. G., Pargas, F. A., & Yankey, M. D. (2016). The Lucky Dragon 幸运的龙–Hong Kong, Special Administrative Region, China. Journal of Business Case Studies (JBCS)12(1), 29-34.

Verbeke, A., Roberts, R. E., Delaney, D., Zámborský, P., Enderwick, P., & Nagar, S. (2019). Contemporary international business in the Asia-Pacific Region. Cambridge University Press.

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