How To Manage A Successful Business In China

by Johan Bjorksten, Anders Hagglund

Overview

This unique book discusses how to manage an organization in China. It is based on the invaluable practical experience of entrepreneur Johan Björkstén, who successfully built a local consulting business with over 100 employees, and Anders Hägglund, a seasoned manager who set up high-growth and highly profitable operations in China for a major industrial multinational. The book provides widely applicable advice based on experiences from different industries, including but not limited to those of the authors.Most books about business in China belong to one of two categories: autobiographical “success stories” or academic treatises. Managing in China goes beyond these genres to provide highly relevant, practical advice and checklists, as well as concrete and illustrative examples from the authors' own experience. Managing in China succinctly explains how historical, cultural and social factors influence today's Chinese business environment, and how managers should take this into account in day-to-day operations.The book focuses on managing in a rapid-growth environment, but also provides advice on how to ensure sustainable operations and profitability in mature industries or a temporary downturn.

Product Details

ISBN-13:	9789814287821
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	01/22/2010
Pages:	236
Product dimensions:	6.20(w) x 9.00(h) x 0.80(d)

Table of Contents

Acknowledgements v

Preface Jöerg Wuttke xi

Introduction: Why We Wrote This Book 1

1 Understanding and Managing China-Specific Issues 2

2 China Holds Lessons for a Globalized World 3

Chapter 1 Chinese Business Climate 7

1.1 Land of Golden Opportunity or Corporate Quagmire? 7

1.2 From Manufacturing Base to Competitive Market 9

1.3 More Demanding Head Offices 9

1.4 A Welcoming Business Climate… 9

1.5 …Or the Heavy Hand of the State? 10

1.6 The Wild East 11

1.7 What You as a Manager can Influence 12

Chapter 2 Differences and Similarities 15

2.1 Sources of Some Differences from Other Markets 16

2.2 Some “China” Factors with Global Relevance 17

2.3 Common Myths about China 19

2.4 A Diverse and Heterogeneous Market 19

2.5 Do You Really Need to be in China? 21

2.6 Common Sense Solutions 21

Chapter 3 Key Concepts of Chinese Business Culture 23

3.1 Face — Making Other People Look Good 23

3.2 Giving, and Saving, Face 23

3.3 Guanxi — Business Relationships 25

3.4 Government Relations 34

3.5 Business Etiquette 39

3.6 Negotiating in China 42

Chapter 4 The Language Challenge 53

4.1 Language is and will Remain an Issue 54

4.2 Make Sure Your Interpreter Understands the Business 55

4.3 Beware of the “Confidant Trap” 56

4.4 Checklist for Non-Chinese Speakers 58

Chapter 5 Qualities of the Right Expatriate Manager 61

5.1 Send Your Best People 61

5.2 Professional Qualities 63

5.3 Personal Qualities 64

5.4 Long-Term Commitment 65

Chapter 6 Company Setup 67

6.1 Geographic Considerations 67

6.2 Development Zones 73

6.3 Legal Structure 73

6.4 Finding and Managing Business Partner Relationships 82

6.5 Due Diligence 86

6.6 Consultants 91

Chapter 7 A Winning Local Team 95

7.1 A Human Resource-Scarce Environment 96

7.2 Characteristics of the Chinese Workforce 104

7.3 Find the Best Candidates, Trust Them, Train Them, and Promote Them 120

Chapter 8 The Right Corporate Culture 135

8.1 You Cannot Fake It 135

8.2 Culture is Especially Important in China 137

8.3 Invest Heavily Upfront 141

8.4 Actively Develop the Culture 143

8.5 Do Not Rush Localization 144

8.6 Guard Against Corruption 146

8.7 Culture and Corporate Brand 155

8.8 Security 157

8.9 IPR Protection 158

Chapter 9 Right Business Focus 163

9.1 Clear Business Focus Drives a Strong Corporate Culture 164

9.2 Market Size and Maturity 164

9.3 Speed of Change — Peter's Story 165

9.4 Distribution is a Major Bottleneck 167

Chapter 10 Support Your Frontline Sales Organization 171

10.1 Production With or Without Local Sales? 171

10.2 Establishing a Sales Organization 173

10.3 Recruiting Frontline Sales People 175

10.4 Training, Developing, and Retaining Sales People 178

10.5 Point-of-Sales Promoters 181

10.6 Motivating the Sales Organization 182

10.7 Getting Paid 183

10.8 Checklist for Collecting Payments 186

Chapter 11 Marketing to China 189

11.1 The Ear to the Ground — Understanding Chinese Customers 191

11.2 Product Portfolio 196

11.3 “Very Cheap, Very Cheap” — Pricing Strategies 198

11.4 Why Brand is So Important 199

11.5 PR and Advertising 200

11.6 Public Relations 201

11.7 Guanxi and Marketing in China 206

11.8 Branding with Chinese Characters 207

11.9 Brand Names Make a Difference 208

11.10 Chinese is Unique 209

11.11 Mainland China, Taiwan, and HK 209

11.12 A Few Steps to Successful Marketing in China 210

Chapter 12 Successful Execution Demands Top Management Attention 213

12.1 Execution Requires High-Level, Hands-on Senior Management Attention, and Follow-Up 213

12.2 You Need to Create a Trusting and Accepting Culture 215

12.3 Attaining Hands-Off 216

12.4 Managing in Downturns 217

Chapter 13 Dealing with Head Office 219

13.1 Managing Expectations 219

13.2 Ensuring Support 221

13.3 Communicating and Educating 221