Risk analysis and prevention in international production and marketing strategic alliance between China and ASEAN companies: From the perspective of China companies

Abstract

From the perspective of China companies, this paper researches the risks of international production and marketing strategic alliances (IPMSAs) between China and ASEAN companies (CACs). Based on the perspective of project management, the Grid Method is used to break down the risks of IPMSAs between CACs. The risks of IPMSAs between CACs are broken down into decision-making risks, formation risks, and operation risks from horizon; internal risks and external risks from longitude. Besides, the Modular Method is used to identify the risks of IPMSAs between CACs, and the Back Propagation (BP) neural network is used to analyze and evaluate the risks of IPMSAs between CACs. The risks of IPMSAs between CACs can be divided into five levels: high, medium high, medium, medium low, and low. Based on these levels, the risk prevention guidelines are proposed: (1) Based on the risk level, the appropriate prevention strategies are formulated; (2) For internal risk, the changes of internal key risk factors need to be eliminated, controlled or mitigated as much as possible. For external risks, the changes of external key risk factors need to be strictly monitored, and to develop corresponding solutions. Finally, for each type of risk, the specific prevention strategies are put forward.