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July 16 Final Reflections on Our Chindia (China & India) TripWow. What an amazing journey and experience! Having just recently come back from our China
and India trip, I have much to appreciate for.
China and India has opened my eyes and my mind. It has made me realize that I am capable of
doing international business, and although some conditions may take a little
getting used to, I feel I may be able to overcome those obstacles and do
extremely well. The
most striking "best business practice" that I took away from the
Chinese that Westerners could learn from is the concept of ‘guanxi.’ I have read a few books that have stated the
importance of guanxi, in which it is essential to maintain a good relationship
outside of just business. Unlike the
Americans, where the business relationship ends once the deal is done with, the
Chinese likes to continue maintaining a relationship. In the future, this guanxi concept can
actually help you with other future deals or assistance, either with the same
person, or with the help of networking, through someone they know. It was good to learn and confirm the
importance of guanxi through the expatriates we met in China. The
most striking “best business practice” that I took away from the Indians that
Westerners could learn from (which is somewhat related to the concept of
guanxi) is the kind and generous hospitality provided to us when we visited the
companies. At almost every visit, the
companies provided us with meals and snacks, and some even provided thoughtful
gifts. We all felt flattered by the
attention we received from the company, and how much we were treated like
family. I think the Westerners should
learn from this by realizing that guests are important and must be kept
satisfied throughout the way. Again,
Westerners think a business deal is just that – a business deal. Westerners need to realize that we have to
satisfy both the businesspeople we deal with and our customers. For the people we do business with, we must
keep them satisfied from the start, and not just rush to get the deal done as
if that is the only thing that matters.
From Wockhardt Hospital in India, we learned the importance of paying
more attention to the customers and keeping them satisfied. We learned that once their international
patients land at the airport in India, it is Wockhardt’s responsibility to make
sure the patients are safe and satisfied right from the start, until they step
back on the plane to go home. This kind
of comprehensive attention throughout the whole time the patient is in India
deserves some notice from Westerners. We
have to stop thinking business is just business and start adding satisfaction
and relationships into that. As I have mentioned, on this trip I learned that I did have the flexibility I
thought I had because I kept an open mind and tried to do what the locals did
and blend in and adapt, such as taking the subways in China and eating where
the locals eat and shopping where I thought the locals would shop, etc. I think much appreciation has to go to the
expatriates who travel out of their comfort zones to do business. During our trip, we experienced many things
that many expatriates should be expected to encounter when doing international
business, but which may need some getting used to, such as airport delays,
unfamiliar food, etc. A potential
international businessperson would have to have the flexibility and open-mindedness
in order to survive and thrive in other countries. Since our trip in China were mostly to the
more developed parts of the country, I did not feel culture shock or
uncomfortable. However, when we landed
in India, that was a different story.
The airport in Delhi was not as grand as the ones in China, with parts
being under construction, and uncleanliness in others. From looking at the building outside, you
would not even be able to tell it was an airport. Outside on the streets, there were many stray
cows and dogs (sometimes even monkeys!), and there was dirt everywhere with
litter stacked on top of that dirt. In
addition, it seems like everywhere you look, there is someone urinating on the
streets or living in places you wouldn’t expect to find people living. The astonishing thing that I saw from both
China and India that visitors would have to be aware of is the “organized chaos”
which we discussed about during the trip.
This was evident from our bus rides and taxi rides. Visitors and business travelers there have to
learn to be flexible and innovative, and learn to adapt like the Chinese and
Indians. Somehow, the chaos just
works. Here is a wonderful video clip of
what I mean: Exiting the On Ramp on the Way to Shanghai. An additional example is when the cars in
China or India are able to make a two-lane street into three or four lanes as
they please, and no one seems to find it unordinary, but rather go with the
flow. Unlike in America, pedestrians do
not have the right-of-way in China and India, and must try to avoid the cars to
cross the streets. Expatriates must also
be flexible when it comes to traffic and timing, since in these busy cities
with such a large population, it can take as long as 3 hours just to drive for
15 miles across the city. Another thing expatriates
have to be able to stand is the weather, as a majority of the time in China and
India it was hot and humid, with sudden unexpected showers of rain. To me, China and India means opportunity. With such a large population, there is obviously much opportunity to take advantage of the fact that there are so many people who are able and willing to work for you for a lower wage than what you would have to pay for in certain other parts of the world. These people are not only hard-workers, but also wise businessmen and businesswomen, as you can tell from the sellers in the streets or stores. They are very good at negotiating, and would purposely offer products to you at ridiculously high prices, hoping you would buy them, but of course expecting you to counteroffer with a lower price, and the negotiating continues from there. In the end, the Indians and Chinese usually do pretty well, because they would never sell you something if they didn’t make a profit for it. You would think you got a pretty good deal, but in reality the Indians or Chinese still made a decent amount of profit off of the ‘high’ price you paid. It was surprising to see an astounding number of people being able to speak English. We were able to view that firsthand through speaking to local Chinese at the English Corner in Beijing or just people in the streets who greet you. Another opportunity in these two cities, again due to its large population, is its market. If you are able to come up with something that a majority of these Chinese and Indians would want to buy and can afford, then you can expect your business to be raking in much profit from these two countries. An example is how the Subways in China have strategically located their stores. They are able to locate multiple stores within a close distance of each other without worrying about taking sales from the other. Each store has a different market that it targets, and therefore Subway was able to have multiple stores within close proximity of each other. Overall, Westerners have much to learn from the Chinese and Indians, and we must realize that it is just a (short) matter of time before China and India will immensely affect the world economy, and we must find opportunities to work with them to make our own economies better. The trip was truly an amazing experience of a lifetime – much thanks to Dr. Chris Carr, Dr. Jay Singh, Mrs. Neetu Singh, Mrs. Vicki Walls and everyone who made our trip possible. June 13 Book Review - One Billion CustomersOne Billion Customers Book Review
Author: James McGregor ISBN: 0743258398 Review by: Angie Dip Overview: One Billion Customers was a fascinating read. James McGregor shows readers how to do business in China so readers can get a better picture of what it is like to do business there. He provides situations or stories in the beginning of each chapter, followed by his thoughts on how the situations or stories he just presented affects how we do business in China today, and some solutions were also given. Useful suggestions were offered as found in other books, such as the importance of face in China, and how history affects how China is today (how the foreigners have humiliated China during the past two hundred years, and the Chinese feels the foreigners owe them for causing their poverty), etc. The Chinese feel they should be treated differently – sometimes even superior in negotiations. McGregor questions how much of the stuff he has written about is relevant today, and how much will continue to remain relevant for tomorrow. With the Chinese growing so quickly and the influence by ideas from the West and other parts of the world, who knows how China will be doing business in the future? Some topics of interest from the book were as follows: Negotiations: As in the other two books I have read, One Billion Customers tells readers about how to negotiate, and that the Chinese can make what may seem like the most outrageous demands, just to test if the foreigners would be “stupid enough to agree to it.” Chinese negotiators are also good at leaving impressions with the foreigners that they need the Chinese more than the Chinese need them. As McGregor says, “it’s all about gaining the psychological upper hand.” The Chinese may label you, a foreigner, as a “friend” or “unfriendly.” If you are labeled a friend, that is good because you can then get better access to information and officials, but on the other hand, the Chinese feel you are obligated to give them what they want. McGregor suggests you being friendly but not foolish by telling your Chinese counterparts that you are doing business, although you would do friendly business if it’s a fair deal for both sides. Joint Ventures: Relationships matter – it is what holds the joint ventures together. So does trust. Although the Chinese negotiators may be deceiving and facts must be verified before pursuing the negotiation any further, workers must feel like they trust you. Be sincere with your workers. I think this quote explains it quite well: “The way to succeed in China is to submerge your ego, be secure in yourself and your position, be prepared to be a coach rather than a boss. The successful people in China are the ones who can attract, train, and retain senior Chinese employees. These people will walk through a wall for you if you help them.” The last sentence from the quote was too ‘explicit’ to put on this book review, but it was basically saying if you mess the Chinese people up, they will mess you up many times more or worst. Of course, it is better if the foreign companies try to get a majority ownership and management control. Joint ventures with government entities is more of a partnership where the Chinese is aiming to obtain your technology, know-how, and capital while maintaining control over the company, instead of trying to aim for a common goal with the foreign company. Bribes: Keep in mind that not all Chinese people are corrupt and that bribes will not always work. This book explains what bribes are considered okay and which ones are not. For example, it is still an accepted and ethical practice to “arrange overseas tours for Chinese business and government counterparts, mixing facility tours, business seminars, and training courses with generous opportunities for tourism and relaxation.” McGregor says that the procurement process in China is usually corrupt at every level, and kickbacks are necessary. However, it is illegal under the Foreign Corrupt Practices Act, and therefore must be done somehow ‘under-the-table,’ or following a “don’t ask, don’t tell policy.” McGregor is not recommending bribery, but is merely stating what goes on in doing business in China. Relevance of One Billion Customers: This was another great book for businesspeople to read. The way McGregor presents the situations and solutions provides a useful tool for businesspeople to apply in doing business in China. With China being such a huge potential market, this is a must read for businesspeople so they would not make the same mistakes that previous foreigners have made in the past when attempting to do business in China. Strengths of One Billion Customers: This was a very well-written book. The way the book was written made it easy for readers to picture the situations described, and the section titled ‘What This Means For You’ that provided details on how the situations or stories affected businesspeople working in China is perfect for businesspeople to learn more about the right way to do business in China, especially with China growing so fast and having all these foreigners rushing to make some money out of China. Another helpful feature of the book was “The Little Red Book of Business” after every chapter, which summarizes McGregor’s observations. Also, with McGregor having lived in China for almost two decades helps readers get a better picture from someone who has seen how China really does business, and it makes his suggestions more reliable to give it a try. Weaknesses of One Billion Customers: I couldn’t think of many weaknesses with the book. One weakness may be its relevance for doing business in China today, as China is becoming such a huge and fast growing market globally, and there is much influence from countries outside of China. However, McGregor has already mentioned that ‘weakness’ in the book, saying that what he has written may we relevant today but not sure about tomorrow. Another weakness may be one of McGregor’s suggestions under The Little Red Book of Business, in which he states “You can’t do too much due diligence on prospective partners. Understanding your partner’s political and family connections is essential. Forget “face,” get the facts.” McGregor also mentions that guanxi is “overrated, temporary, nontransferable, and resides in the individual who has it.” Although I agree that it is important to get the facts before agreeing to some sort of partnership, I have read constantly over and over again how important ‘face’ and ‘guanxi,’ or relationships, are. I believe that guanxi is very deeply ingrained in the Chinese minds, and if you don’t have good relationships, the Chinese very well can and will find someone else who has good relationships with them to do business with. If you forget ‘face’ as McGregor suggests, you may just end up having a messy relationship and business will most likely only go bad from there. My suggestion is just to be careful and verify facts, but remember the importance of ‘face’ and ‘guanxi’ in doing business in China. My Recommendation & Closing Thoughts: Great read for anyone intending to do business in China – especially foreign businesses who are interested in learning more about how China does business and why they do it the way they do. Readers – possibly especially Chinese readers – would enjoy reading all the Chinese proverbs with meaningful translations that McGregor uses to explain the situations and applying them to doing business in China. This book is very helpful in an attempt to be successful in doing business in China, and is highly recommended. Book Review - One Billion CustomersOne Billion Customers Book Review
Author: James McGregor ISBN: 0743258398 Review by: Angie Dip Overview: One Billion Customers was a fascinating read. James McGregor shows readers how to do business in China so readers can get a better picture of what it is like to do business there. He provides situations or stories in the beginning of each chapter, followed by his thoughts on how the situations or stories he just presented affects how we do business in China today, and some solutions were also given. Useful suggestions were offered as found in other books, such as the importance of face in China, and how history affects how China is today (how the foreigners have humiliated China during the past two hundred years, and the Chinese feels the foreigners owe them for causing their poverty), etc. The Chinese feel they should be treated differently – sometimes even superior in negotiations. McGregor questions how much of the stuff he has written about is relevant today, and how much will continue to remain relevant for tomorrow. With the Chinese growing so quickly and the influence by ideas from the West and other parts of the world, who knows how China will be doing business in the future? Some topics of interest from the book were as follows: Negotiations: As in the other two books I have read, One Billion Customers tells readers about how to negotiate, and that the Chinese can make what may seem like the most outrageous demands, just to test if the foreigners would be “stupid enough to agree to it.” Chinese negotiators are also good at leaving impressions with the foreigners that they need the Chinese more than the Chinese need them. As McGregor says, “it’s all about gaining the psychological upper hand.” The Chinese may label you, a foreigner, as a “friend” or “unfriendly.” If you are labeled a friend, that is good because you can then get better access to information and officials, but on the other hand, the Chinese feel you are obligated to give them what they want. McGregor suggests you being friendly but not foolish by telling your Chinese counterparts that you are doing business, although you would do friendly business if it’s a fair deal for both sides. Joint Ventures: Relationships matter – it is what holds the joint ventures together. So does trust. Although the Chinese negotiators may be deceiving and facts must be verified before pursuing the negotiation any further, workers must feel like they trust you. Be sincere with your workers. I think this quote explains it quite well: “The way to succeed in China is to submerge your ego, be secure in yourself and your position, be prepared to be a coach rather than a boss. The successful people in China are the ones who can attract, train, and retain senior Chinese employees. These people will walk through a wall for you if you help them.” The last sentence from the quote was too ‘explicit’ to put on this book review, but it was basically saying if you mess the Chinese people up, they will mess you up many times more or worst. Of course, it is better if the foreign companies try to get a majority ownership and management control. Joint ventures with government entities is more of a partnership where the Chinese is aiming to obtain your technology, know-how, and capital while maintaining control over the company, instead of trying to aim for a common goal with the foreign company. Bribes: Keep in mind that not all Chinese people are corrupt and that bribes will not always work. This book explains what bribes are considered okay and which ones are not. For example, it is still an accepted and ethical practice to “arrange overseas tours for Chinese business and government counterparts, mixing facility tours, business seminars, and training courses with generous opportunities for tourism and relaxation.” McGregor says that the procurement process in China is usually corrupt at every level, and kickbacks are necessary. However, it is illegal under the Foreign Corrupt Practices Act, and therefore must be done somehow ‘under-the-table,’ or following a “don’t ask, don’t tell policy.” McGregor is not recommending bribery, but is merely stating what goes on in doing business in China. Relevance of One Billion Customers: This was another great book for businesspeople to read. The way McGregor presents the situations and solutions provides a useful tool for businesspeople to apply in doing business in China. With China being such a huge potential market, this is a must read for businesspeople so they would not make the same mistakes that previous foreigners have made in the past when attempting to do business in China. Strengths of One Billion Customers: This was a very well-written book. The way the book was written made it easy for readers to picture the situations described, and the section titled ‘What This Means For You’ that provided details on how the situations or stories affected businesspeople working in China is perfect for businesspeople to learn more about the right way to do business in China, especially with China growing so fast and having all these foreigners rushing to make some money out of China. Another helpful feature of the book was “The Little Red Book of Business” after every chapter, which summarizes McGregor’s observations. Also, with McGregor having lived in China for almost two decades helps readers get a better picture from someone who has seen how China really does business, and it makes his suggestions more reliable to give it a try. Weaknesses of One Billion Customers: I couldn’t think of many weaknesses with the book. One weakness may be its relevance for doing business in China today, as China is becoming such a huge and fast growing market globally, and there is much influence from countries outside of China. However, McGregor has already mentioned that ‘weakness’ in the book, saying that what he has written may we relevant today but not sure about tomorrow. Another weakness may be one of McGregor’s suggestions under The Little Red Book of Business, in which he states “You can’t do too much due diligence on prospective partners. Understanding your partner’s political and family connections is essential. Forget “face,” get the facts.” McGregor also mentions that guanxi is “overrated, temporary, nontransferable, and resides in the individual who has it.” Although I agree that it is important to get the facts before agreeing to some sort of partnership, I have read constantly over and over again how important ‘face’ and ‘guanxi,’ or relationships, are. I believe that guanxi is very deeply ingrained in the Chinese minds, and if you don’t have good relationships, the Chinese very well can and will find someone else who has good relationships with them to do business with. If you forget ‘face’ as McGregor suggests, you may just end up having a messy relationship and business will most likely only go bad from there. My suggestion is just to be careful and verify facts, but remember the importance of ‘face’ and ‘guanxi’ in doing business in China. My Recommendation & Closing Thoughts: Great read for anyone intending to do business in China – especially foreign businesses who are interested in learning more about how China does business and why they do it the way they do. Readers – possibly especially Chinese readers – would enjoy reading all the Chinese proverbs with meaningful translations that McGregor uses to explain the situations and applying them to doing business in China. This book is very helpful in an attempt to be successful in doing business in China, and is highly recommended. March 21 Book Review - China, Inc.China, Inc. Book Review China, Inc. Author: Ted C. Fishman ISBN: 0743257529 Review by: Angie Dip Overview: Ted S. Fishman does a very good job in providing much detail of China for a person who is unaware or has no idea how China is or looks like. Not only does he go in depth with setting up how cities like Shanghai look, with all the skyscrapers and constant changes, but the details he provide makes it much easier for readers to picture and follow. The book begins with how China is seen everywhere these days and affecting the world, such as seeing many products sold in stores made by China. It also tells us how numbers are unreliable in the books China provides, as it usually is much bigger than what they claim to be. For one thing, GDP is only measured in the legal economy, and there is much activity going underground that is unaccounted for. As for other numbers, such as population, many people are not reporting that they exist or where they are living for fear of one thing or another. This ‘one thing or another’ may be, for example, that farmers owe money to private lenders and do not have the money to pay for it, so they have gone to another city to hide and can’t report it, or another example may be that many people from the rural areas are moving to the urban areas, and they need permits to be working there. Many of these migrants do not have the permit, and therefore they also cannot report to officials that they are living there. Throughout most of the book, Fishman explains how different industries and different countries, and just about everyone in general, gets affected by China, whether they are affected because China is seen as a competitor, supplier, or customer. Finally, in the last section of the book, Fishman explains some expectations for the future that he sees happening or will happen in China. Relevance of China, Inc.: This book is perfect for anyone interested in learning more about China’s economy or anyone who is interested in doing some kind of business with China. It gives you a brief history of why China is the way it is (for example, how China can’t completely be blamed for counterfeiting or robbing “the rest of the world of wealth it has spent generations accumulating.” (Page 252) That is because “China is merely acting as other nations do when presented with the chance to increase their wealth and power.” (Page 252)) The book also explains, as I have mentioned, how different industries and different countries are being affected by China, such as how manufacturing jobs are being shifted from developed countries such as the United States to China or how Wal-Mart, with the help of China’s low prices, are influencing their suppliers to also bring their production to China and lower costs for Wal-Mart. Since this book affects almost anyone in general, this book would definitely benefit everyone who chooses to read this book. Strengths of China, Inc.: This book was very well written. Many numbers and facts were provided in much detail, with many sources to back it up. There was a wide range of topics that Fishman provided, with stories about people to engage readers more into the book. I found some interesting facts in the book, such as “until recently it was all but illegal to lend to private businesses in China, and yet the scope of the informal finance network rivals the banking systems of other countries.” (Page 59) Another interesting fact I found was that “while the rest of the world worries about the power of China’s best factories to kill off jobs, the Chinese themselves must worry about how competition in their own country is spiking unemployment.” (Page 75) I have never thought of that. I, and I am sure along with many other people, have always thought that maybe the rest of the world should fear China as a competitor, but not China fearing itself. In the last section of the book, when Fishman tells what is happening in China or what he expects to happen in China, I thought that could be very useful to help readers predict what will happen in the future and try to find ways to prepare themselves for China’s booming economy, such as how it may be useful to learn Chinese, how the yuan will eventually strengthen against the dollar, or how manufacturing jobs (and also other industrialized markets) will continue to shift toward China. China is becoming more powerful because of this shift, but it is also helping countries pay lower prices for products and helping keep interest rates down for America, which actually helps keep interest rates low worldwide. In addition, China’s loss in arable land may “be the rest of the agricultural world’s gain. The World Bank predicts the country’s global food imports will more than double by 2020.” (Page 140) Surprisingly, the world may actually gain and be able to supply China. Weaknesses of China, Inc.: There really wasn’t any weaknesses I noticed in this book, other than it needs to be updated with new information, since the book was published in 2005 and since China is constantly changing, the book would have to be updated to reflect the constant changes, but I would not consider this as a weakness. My Recommendation & Closing Thoughts: Overall, this was a very good book with many facts with sources to prove they are reliable, and with many stories of actual people to engage readers. I learned many interesting facts, and know now that China constantly tries to be best, and that it affects everyone – whether directly or indirectly as a supplier, a competitor, or a customer. I also like how Fishman had tried to back China up by explaining why China does certain things that it does, such as counterfeiting or always aiming to be the best. I think anyone who is interested in learning about China’s economy or a brief history should read this book – especially if you are a businessman or businesswoman planning to do some kind of business with China. December 07 Book Review - China StreetsmartChina Streetsmart: What You MUST Know to Be Effective and Profitable in China Author: John L. Chan ISBN: 0130474886 Review by: Angie Dip Overview: John L. Chan attempts to teach people how to be effective and profitable in China in the book, China Streetsmart. His definition of being China Streetsmart is simply “possessing and exercising the knowledge and ability to survive in a hostile” China environment. (Page 1.) The book begins by telling readers what the challenges were for foreign companies trying to do business in the 80s and the 90s, and how we can learn from the mistakes those companies make to become effective in doing business in China. The book provides “six universally applicable common-sense action steps the most successful executives and companies practice to be effective in China, including 1. Maintain management consistency – own up to mistakes and manage expectations. 2. Be flexible and adaptable – develop based on local needs. 3. Be patient and thorough – wait for the right moment to strike. 4. Think win-win – but develop respect and trust first. 5. Be detailed – clarity prevents problems. 6. Maintain a healthy attitude – choose your battles carefully.” (Pages 15-16.) For a major portion of the book, it then provides the action steps in detail and gives a case study of how a company, Shanghai Portola Packaging Co., Ltd. had first started off as a joint venture with a Chinese company, and eventually became a wholly owned foreign enterprise, with examples on how the company had succeeded and is continuing its success in China. The last part of the book presents other issues that may affect investments in China in the long term, such as political and economic issues. Relevance of China Streetsmart: This book is relevant for any company or person interested in doing business in China. It doesn’t matter if you don’t intend on opening a company there. This book is still useful to those who go to China to do any business. This book provides you information about guanxi, which is good relationships with people, and other useful tools such as the negotiation process or how the Chinese people need “face” and for you to show respect. Even if you were not in China to do business but for travelling purposes, this is still a useful book to read, because it gives you insight on Chinese culture and how they are different/similar to the United States or other countries. Strengths of China Streetsmart: China Streetsmart was a well-written book. It provided many real-world easy-to-understand examples, from examples drawn from companies to even the author’s mother-in-law negotiating for a fair price on vegetables in the market (an example of how negotiating works and how locals build up respect and trust – the Chinese way) on page 60. The book also included the case study of the Shanghai Portola Packaging Co., Ltd., which was useful to see how a real company applied the action steps that Chan had provided. I also enjoyed the humor used in the book. By listing out the six action steps and then describing each in detail, any person who reads this book and wants to form a company would know almost exactly what to do and how to go about doing so. Weaknesses of China Streetsmart: There weren’t many weaknesses in this book. The only thing I found was that it was repetitive in presenting the details of the case study. He would first briefly go over a little detail about the Shanghai Portola Packaging Co., Ltd., such as the preliminary steps they took, or negotiating the deal, and then basically repeat what was said but in further details in the sections labeled as “A China Streetsmart Analysis.” Although it was understandable to separate the case study section with the China Streetsmart Analysis section, I thought it could have been reduced and still provide the same useful information the author had intended. My Recommendation and Closing Thoughts: Overall, I thought the China Streetsmart is a very useful tool for anyone travelling to China, whether for business or other purposes. It not only provides detailed action steps a company can take to be effective in China, but it also provides valuable insights on the culture of China. When I first read the title of this book, China Streetsmart, I thought it would provide me tips on how to be in China and not let the Chinese people trick me while I am there and how to be more aware, but obviously I was wrong. It is much more than that. I learned how the negotiation process works (in which the Chinese tends to throw out an outrageous offer just to test your limits, and which will be useful for when I go on the China trip), how important guanxi is in China (that short-term briberies are not considered guanxi but it is more of a matter of mutual trust, respect, and understanding), and how Mandarin is not the most important thing a business person must learn to be effective in China (as long as you can find a trusted lieutenant who can guide you and who can speak Mandarin). This is definitely a good read, and I recommend it to anyone interested in learning more about China.
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