The changing environment faced by Hong Kong-based entrepreneurs undertaking production in southern China provides the broad context for the Wah Hoi case. Since starting production in Guangdong province in 1988, Wah Hoi has grown rapidly. However, in the mid-1990s, the founder and owner of Wah Hoi, Mr. Fred Mok, has to address a number of problems. These include a need to re-evaluate several joint venture agreements; pressures from cost inflation and regulatory changes in China; a tough competitive environment in overseas markets; and policy issues relating to Wah Hoi's international marketing strategy.
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