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PDF Open with Google Docs Doing business with Chinese companies is not simple. nor does it happen quickly. Take Harbour Air, a Vancouver-based float plante company that has undertaken a strategic partnership with a large Chinese firm to pro vide float plane services and knowledge in a new venture. The firm will help Zongshen Industrial Group set up the first float-plane operation in China. Given the 1.4 billion people in China and the many waterways. It is hard to imagine that there are no planes in operation. The expertise Harbour Air brings to the relationship will provide a solid launching pad for services in Shanghai and other South Asian places. Part of the deal allows for the purchase of 49% of shares of Harbour Air from its current owner and CEO, Greg McDougall. McDougall indicated that he had been approached for a number of years to export the expertise but resisted for fear of bureaucracy and lethargy as regulators dealt with expansion of low-flying aircraft. However, he felt the time was now to move into another market. There is a need to have fast and efficient transportation services along China's coastal routes, and Zongshen indicated that local governments are strongly supporting the new endeavour. Besides the expertise and knowledge Harbour Air will bring the new company will be called Harbour Air China. Another reason for utilizing this approach is to generally introduce more aviation into China. Part of the long-term plan is to build its own seaplanes as the busi- ness expands into Malaysia and Vietnam. This relationship will also allow Harbour Air to expand into the northern area of British Columbia, where oil and gas development is creating more demand for coastal plane services. CRITICAL THINKING QUESTIONS: 1. Besides expertise, what other advantages might Harbour Air have in partnering with Zongshen? 2. What might be some disadvantages for Harbour Air in the future with the current ownership arrangement? Scanned with CamScanner Tesco, Britain's largest supermarket chain, provided incorrect compensation to almost 140,000 employees due to errors in its payroll system. Almost 10m is owed to current and former workers after a system error led to them being paid less than the national living wage. The company found that calculation errors were made when staff made voluntary contributions from their wages to benefits such as pensions, childcare vouchers, and cycle to work schemes. Chief Execu tive Matt Davies noted that as soon as the errors were discovered, action was taken to correct the underpay. ments, and apologies were issued. Tesco is not denying these errors and going forward, is working to ensure that fair and appropriate compensation is provided to all employees. Employees are anxious to receive money owed to them as they need to meet their own financial obli- gations. As well, employees want to know that their employer is paying them fairly and accurately CRITICAL THINKING QUESTIONS: 1. What other actions should Tesco take to rectify this situation? 2. Beyond legal obligations, why should a company ensure that employees are being paid properly? Scanned with CamScanner Page 1 / 2 + a