Study On The Feasibilities Of The China Project Of The South Africa A Power Technology Group

The A Power Technology Group is rooted in the power and electricity industry in South Africa. The A Power Technology Group China Project was formerly known as ABC Cable PTY Ltd., China Branch for cable business and the contact point between China and the group, but it has losses for three consecutive years. The implementation of the China Project is in trouble. In April 2011, South Africa joined the traditional BRIC countries, which were formed by China, Brazil, Russia, and India, thus becoming the closer cooperation BRICS. South Africa uses the removal of trade barriers, tariff adjustments and other measures in order to further deepen the trade and investment activities with China and other four countries. Under the above background and the guidance of the Group's strategic, the strategic decision-making on whether the China Project will be maintained or not is very important.In order to solve the above problem, this paper analyzes the conditions of the A Power Technology Group and its operating conditions in China internally; from the macro-market environment and micro-power industry conditions, analyses the market feasibility of the project; based on the historical data and estimated reasonable statistics, analyzes the financial viability of the project.The paper is according to the documentary research method and the field research method to the power and electronics market in China to do the study as following steps. Firstly, by analyzing the conditions of the A Power Technology Group and its operating conditions in China internally, highlight the strengths, address weaknesses, and looking for the approaches. Secondly, by using PEST model, from the political and legal, economic, social, cultural and technological environment, these four aspects and the Chinese power industry, and Chinese power industry suppliers'ability, analyzes the market feasibility. Finally, by reasonable forecasting per the market conditions as basic parameters, calculating the return on investment rate, and then setting a reasonable degree of loss indicators of the China Project for the Group, analyzes the financial viability. Under the Group's strategic guidance, this study provides a direction for the adjustment of the China Project positioning and identifies the feasibilities of the follow-up decision-making on maintaining the China project.