Jupiter Incs dairy processor business Kiewa Milk Ltd which operates a factory in the famous Kiewa and Mitta Valley dairy region in North East Victoria and produces a range of premium yoghurt products has purchased the ChinaSouth DairyCo, a large dairy distributor network based in Shanghai with wholesale outlets and networks throughout South East China. Whilst the world-wide market for premium yoghurt products is increasing steadily, the opening up of the Chinese market through the purchase of this wholly owned Chinese subsidiary represents an opportunity for exponential growth.

The Kiewa Milk Ltd General Manager Jo Dunstan is travelling to Hong Kong to hold meetings with Mr Zhang who manages the newly acquired subsidiary and his management team. Ahead of her trip Jo has requested that you provide her with a briefing regarding the following:

i) the perceived differences and advantages of Kiewa Valley dairy products in China and how this should be reflected in manufacturing practices of the export product

ii) any potential differences between Chinese and Western approaches to management accounting and budgeting that Jo may encounter; and in particular

iii) Jo also wishes to understand how the concepts of guanxi and power distance will impact on her interactions with the current ChinaSouth DairyCo managers

what part is unclear?