QUESTION FOUR $[25]$ READ THE CASE STUDY BELOW AND ANSWER THE QUESTIONS THAT FOLLOW: Leading technology companies from around the world are entering China to establish research centres, leverage China's unique situation of rapid growth and large manufacturing base, and scooping up talent from China's leading universities. SAP, the world's largest application software company, recently entered China to establish one of its exclusive technology research centres, SAP Research. While this division has been successful at its headquarters in Germany, the Chinese labour market and business environment remain difficult for foreign multinationals to navigate. Foreign companies often experience challenges ranging from difficulty finding innovators in a competitive talent pool to dealing with turnover of employees that have an aggressive focus on compensation. There is concern that locating in Shanghai, far away from the innovative hotbed of universities and other technology research centres that have set up shop in Beijing, was the wrong choice for SAP in China. What would be necessary to win the war for high$-$profile PhDs in the $1$ competitive Chinese labour market? What would be required for SAP Research China to be an integral contributor in SAP's worldwide innovation network?

$4\mathrm{.}1.$ Elaborate on the factors that SAP would have considered when choosing to open a research centre in China. $(10)$