The CEO of Tianjin Factory in China, Brown Mills, worries about rising wages and strikes in China recently. Tianjin Factory is a manufacturing and exporting firm of those aero composite parts and a international joint venture. The minimum wage of line workers has been rosen by about 20% and labor disputes have suddenly increased 2 times in 2010. The China government has a silent policy to increase the worker’s wage 2 times until the year 2015 and push forward with the policy. He has completed the second factory this year after successfully managing the line worker’s violation of production procedures and cover-up incident occurred in 2004. After the factory completion, he has a plan to hire about 500 line workers within 2-3 years additionally. So the rising wages and strikes could give a heavy blow to BTC’s business through a price hike and a shipment delay. How does he manage these difficult challenges for Tianjin Factory’s survival and sustainable growth if the wages would be increased more than 15% annually?