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May 17, 2009

book report

The book “Made In China” was written by Donald N. Sull with Yong Wang and public in 2005. The book mainly talks about what western managers can learn from trailblazing Chinese entrepreneurs. There are total of nine chapters in the book contains acknowledge the fog of the future, go for the gold, learning in an unpredictable world and so on. And I am very interested those three chapters that I mention on above.

The concept of acknowledge the fog of the future was on chapter two. A company under in this concept is going to facing several unpredictable variables that are complex, dynamic and interactive. By looking at the unpredictable variable, I realized that a company would be solving problem rather than control those problem in the market. Just like a person walking on the road in a foggy weather. The person cannot predict what would willing to happen but still need to solve out the problem and able to live. It is same for a company who have taking with those unpredictable variables will reduce a company’s operation. So, as a manager in China should be well know how those variables will affect the company and find out a way to lead the company to go through. Although, company will facing a economic cost in the fog of the future, if they operating in a organized way; the company will able to get a economic profit in the long-run.

Second concept of go for a gold, the chapter argued that companies can gain significant advantages from seizing golden opportunities but must generally concentrate their resources to do so. There are three ways can help managers and entrepreneurs evaluate opportunities to increase the odds of getting their timing right when pursuing a golden opportunity. The three windows of opportunity is a framework that focus on question about customs, competitors, and context that help managers evaluate whether the timing is right to bet big on pursuing a golden opportunity.

For the last, the concept of leaning in an unpredictable world, it was like acknowledge the fog of the future. We facing unknown problem and finding answer in new way. So, by reading the whole book, I learn a lot of how to manage a company in china. Problems that we need to think and solve, also we need to face any unpredictable variable that will affect the company. And last, I think I still have a lot need to learn of it.

May 16, 2009

Book Review

I also read the book entitled “One Billion Customers” by James McGregor. Companies from the United States and around the world are interested in entering the Chinese market in some capacity. China offers a place either to buy, sell, or produce goods. Since this is a country with 1.3 billion potential customers and a cheap labor force to be able to manufacture goods it is clear why this country is appealing to countries around the world.

James McGregor lived abroad in Asia and through his experiences was able to write this book. “One Billion Customers” has eight chapters and a summary at the end of each chapter called the little red book, which gives a bullet pointed summary of the main lessons of each chapter. The main point that I gathered is that if you decide to enter into business with China know what you want from this business adventure and also understand that China operates differently and to be prepared.

McGregor begins his book by explaining Chinese history and how they have come to present day China. Then he goes on to give advice from what he thinks are basic survival tips to doing business in China. I believe that this is a great book for people interested in pursuing business abroad. It also helped in my preparation of traveling through the country. I now have a better understanding of the history of China and I am intrigued by what is meant by China moving towards a modernized society instead of westernized society.

International Brand Management of Chinese Companies

The International Brand Management of Chinese Companies, by Sandra Bell, writes this book base on her case studies on the Chinese household appliances and consumer electronics industry entering US and Western European markets. This book introduce three topic of Chinese companies, going international and brand management, and integration which is a new field of research from the study. She points out the three different types of Chinese global brand management.In the book, she also talks how foreign companies try to enter Chinese market and what are the advantages for Chinese companies and their lacks. I strongly recommended to read this book, because it use many effective examples to explain. So is easy to understand what this book is talking about.

Book Review-"China Shakes the World"-James Kynge

“Let China sleep, for when she wakes, she will shake the world”—Napoleon Bonaparte. China Shakes the World, by James Kynge discusses the impact of China’s ever-expanding economy on the environment, the world’s economy, and China, itself. Because China is expanding at a rate never before seen, there are going to be some environmental problems, not only in China, but around the world. China is the second largest producer of greenhouse gases in the world—behind the United States. 16 of the top 20 most polluted cities in the world are located in China. A large majority of China’s largest cities are having water shortages—Kynge states that by the year 2050, two-thirds of China’s ice fields will be depleted, leading to even more water troubles. China’s demand for lumber is causing the world’s rainforests to be logged illegally at an incredible rate. China’s growth and depletion of natural resources in comparable to that of the United States at the turn of the 20th century, except it is occurring at an accelerated rate.

China is having a profound impact on the world’s economy. Kynge gives this example: In 2004, China’s demand for steel caused the price of scrap metal to rise to record levels. As a result, thieves around the world had the same idea—find scrap metal, sell it to merchants, who will in turn cut it up and sell it to China. Where did they get all this scrap metal? The thieves stole manhole covers from Taiwan to Chicago. The rise in oil prices over the past decade can be linked directly to China. They have 40 cities with populations over 1 million people; another 50-plus cities have populations of over 500,000 people. The city of Chongking is growing by 300,000 people every year! Obviously, economies around the world are going to be impacted by the urbanization of China’s population.

Aside from the environment and other country’s economies, China’s self-image is changing. They are in the midst of changing from a rural country to an urban country. Kynge states that by 2050, 700 million people will live in urban areas—compared to 300 million people in 2005. They are using cutting edge technology to expand. Their workers are skilled; however, the minimum wage is about $0.50 per hour. This makes it impossible for other developed countries to keep domestic jobs because they can outsource and pay about a tenth of the wage. Kynge talks about the corruption in China’s government that seems to be normal to its’ citizens. They do not let their citizens have the freedoms other developed countries allow their citizens; they have very strict censorship for television, movies, and the internet.

China Shakes the World is a very well written book that thoroughly discusses the ever-expanding China. James Kynge goes into great detail about problems with the environment, the impact of China’s growth on the economies of countries around the world, and the way China is changing within its’ own boarders.

Book Review: The New Silk Road

The New Silk Road, by John B. Stuttard ,draws upon his five years of experience living in china as the executive chairman of PricewaterhouseCoopers. His book combines his own perspectives with other professionals that have experienced both great success and failure. This book provided a great insight into the background and culture of China, while simultaneously identifying common mistakes made by American professionals new to the area. The book takes a more biographical approach to conveying the information. The book uses real people from a corporation and their experiences to exemplify every lesson the book has to teach. Some of the well known companies the book draws experience from are AIG, Novartis, ASIMCO, Johnson & Johnson, and many more. The book uses the firsthand accounts of the managers in charge in China and their accounts of the pitfalls and success stories to enlighten the reader. They discuss what they did right and what they learned from their failures. One reoccurring theme is “guanxi” which means connections or relationships. Over and over again guanxi is stressed as the most important aspect of doing business in China. While China is referred to as the wild west of the business community, open to those brave enough to attempt to achieve success; there are important lesions to be learned from previous ventures. This book does a great job at capturing and presenting that knowledge.

May 14, 2009

One Billion Customers Lessons from the Front Lines of Doing Business in China

“One Billion Customers” is a first hand account of James McGregor who spent a portion of his life in China. He first was introduced to Asia when he was 18 and spent time as a infantry soldier during Vietnam. He later went back in 1985 and backpacked around China to learn Mandarin and focus extensively on journalism. In 1993, McGregor became the chief executive of Dow Jones & Co. in China and a vice-president in the Dow Jones International Group until 2000. With his knowledge about the Chinese business world, he wrote this book and has been called the bible of learning how to do business in China. "This is a defining book on how to, and how not to, do business in China. Jim McGregor brings to life the stories of the pioneering American entrepreneurs who, through their efforts, expertise and errors, blazed the trails for the broader business community in one of the world's most important markets. I strongly recommend it as must-reading for anyone with a stake, an interest or a dream in China." (Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce)

Book Review China Inc.

In the book China Inc. by Ted Fishmen, Talks about how China’s economic strengths in and how there growth will change the world. One example that he gives it’s the fact that China is going to be a huge influence on world economics. They are able to use techniques that cut the prices so low that the rest of the world cannot keep up with. The book talks about how many of the Chinese workers can work up to 12 hours a day seven days a week. The Chinese labor is also very cheap and also very efficient. Many of the Chinese factories are very efficient and they can lower the price dramatically because many of the workers only get paid a dollar an hour. Even with America having top of the line equipment they cannot match the price because they have to pay their employees so much more. China Also doesn’t have copyright laws so many of the factories copy the designs of the equipment so they too can make there machines for cheep and still have good equipment to produce high quality goods. He also states that China has one of the fastest growth rates at about 9%. Many developing countries can’t even imagine coming close to the growth rate. He also touches on the fact in like 5 years there will be a huge concern for automakers because they will be able to make cars that are very nice at a price that competitors will not be able to match. This book focuses on mainly the fact that many other countries including the US will not be able to keep up with industrial super power of China.

Review of "The Chinese Economy Transitions and Growth" by Barry Naughto

"The Chinese Economy Transitions and Growth" gives an extensive look at the Chinese economy. Barry Naughton begins the book with a look back at the older Chinese economy, and then transitions to the time past 1949 for the rest of the book. The book gives great insight to the political, social, and economics changes that have taken place, and allowed for such rapid growth of the Chinese economy. The author focuses on such aspects as the one child policy, population growth, urban and rural area growth, and the effects that they have had on the economy at large. The book also examines fiscal policies, the financial system policies, and the economic trends that have resulted from different policies being enacted. For the conclusion, the book addresses the questions of the sustainability of China's growth, as well as the environmental quality that must be present to sustain future growth.

The content of this book was exhaustively researched, it examined both macro and micro trends in the Chinese economy in a very rigorous manner. This book helps open your eyes and see the immense growth that China has achieved in recent history, and the efforts that must be done to sustain such rapid growth. The book describes the vastness of China as a country and the immense economic power it has become. If you want an extensive look at the recent Chinese economy I highly recommend this book.

Book Review

For my book I read China, Inc by Roderick Macleod. The author begins the book by stating how one can merely gaze upon the surface of Chinese tradition in business and non-business scenarios and think he/she may know the in's and out's, wrongs and rights about the cultural norms in a foreign country. But these subtle differences do not even begin to scratch the surface of the cultural variances between such contrasting-in-context cultures. Macleod tends to focus on why we, as humans, act the way we do. When I say humans I mean a specific culture, I mean every human who inhabits this earth. The author looks at various facets to cross-cultural relationships and communications such as ethnocentrism, judgments, norms, ethics, and stereotypes. This book carries a lot of valuable information with it that would be vitally important in starting your own international business, more specifically with branches in China. The gem that the author throws your way in this book is that if you get passed over-analyzing the differences between the cultures and stop trying to correct them, by merely just understanding them, you will be further in the game that many other people, leading you and your business to a large deal of success.

Book Review

The book that i have been reading is called, Chinese Etiquette and Ethics in business. This book provides an analysis of moreal and values that shape the Chines business personality. Some of the topics covered include a historical perspective, living in a beehive society, working in a beehive society, rules/guidelines, and eating and drinking etiquette. I would like to focus on what i have thought to be the more interesting topeics of eating and drinking etiqutte. The first topic i found interesting was the Yin/Yang Principle, the chinese beilieve that everything in the universe is either positive or negative, wet or dry, cold or hot and so on. Foods that would be considered Yin foods are thin, bland, cooling, and low in calories. Foods considered to be yang foods are rich, spicy, warming, and high in calories. Also boiling foods makes them yin and deep frying makes them yang. Another note on the yin or yang principle is that is appled to individuals as well there are three types of people positive, negative, and nervous. The second tope is the ways of Chinese cooking. The special character of their food derives from the manner of preparation, the methods of cooking, the timing, the sauces used, and of course the ingredients. One of the first principle is a large share of chinese cooking is to chop, mince, crush, shred, grind, score, dice, or slice all indgredients in to paper thin pieces. Next food should be cooked quickly over a very hot fire. The third principle is that a a wide variety of spices and other taste enhancers such as sesame, oyster juice, and soy are used. The last two things i found interesting were the styles of eating and seeting etiquette. There are generally two styles of Chinese meals which are family style and banquet style. Family style everyone helps thereself from a number of communal dishes and this is follewed in both homes and resturants. Banquet style dining most often occurs in resturants, usually involving quests, is more formal, and typically takes place in a private room. What is served at banquet meals varies according to the nature of the event. Seating arrangements are very important at meetings with Chinese. The chief quest is always seated at the head of the room, facing the door, and the host with there back to the door. Other guests are seated to the left and right of the chief guest in a descending order of their rank or importance. This helps give the host a direct view of the main guest and only a slight view of least important people who are seating on the ends. Reading this book i feel has helped gain some insight on how it might possibly be like in China. It provided basic information on a varitey of topics which was very beneficial. I also thought it was an easy ready and will ultimately help me when im in China.

May 13, 2009

China - Book Review

My book was titled "China Competing in the Global Economy." I found this book somewhat hard to read because it was filled with lots of graphs, jargon, and mathematical equations. But, none-the-less it did talk about some very relevant issues.
The first portion of the book discussed the rapid growth that China has had over the past couple of decades. We have all seen it, so this shouldn't come as a surprise. The book states that the growth should continue, however, at a slower pace, leveling off at around 7 percent per year. Using many graphical and mathematical representations, the book insists that with this growth the provinces will converge to a middle ground when it comes to wealth. Right now the wealth is not balanced, but progress is being made. The book then goes into the macroeconomic viability of China and talks about the “State-owned enterprises” and banks, discussing the vulnerability of China in these areas and the need for policies to manage the vulnerability going forward. The banks are very weak and unable to sustain themselves. This weakness in finance could cause major problems, so China is looking to reform to help control it. Lastly, the book talks about the global environment and exchange rate flexibility in China. It discusses foreign direct investment and a market economy and how the exchange rate needs to be more flexible to move China into the global economy. China is spuring development and looking forward to merging successfully into the global economy.

May 12, 2009

Book Review for Douglas Charley

The book that I read is called, " China in Focus: Economic, Political and Educational Issues," by Ernest P. Nolan. This book was very interesting and gave me a really good understanding of the issues that China encompasses every day. The book has 11 chapters and describes in detail their economic, political, and educational issues. It provides an in-depth analysis of issues such as foreign policy, FDI, military plans, school reform, currency policies, and overall economic developments. Chapter 1 talks about the the relationship between the Chinese and the Japanese. With China on the rise it provides a threat to Japan. In the past they have had some problems with each other mostly on military issues. The author believes that their will be no threat of these two becoming very angry at each other in the new century. Chapter 2 talks about the Policy of Assurance. Some countries have concerns over the increases in it's international presence. Mostly, because they are a communist party that is backed unlimited economic potential that would challenge the western way of life. Chapter 3 starts talking about their Foreign Direct Investment. China has a very export-orientated FDI and also has massive predominance of FDI from Hong Kong. This country uses FDI for economic growth and it does this very well because of its huge country size, effective strategies, and a strong central government. Chapter 4 deals with administrative barriers to FDI. It is in a transition from closed economy to an open one. They have lots of investment restriction that is greatly regulated.. It has been a major issue for foreign investors. Chapter 5 talks about the civil organizations. He describes them as underdeveloped and weak because the government fails to get people into the organizations. It is basically a semi-civil society as he says. Chapter 6 talks about the expansion of Chinese students into the global schools around the country, especially in the UK. It says that with all of these students study in different countries it causes serious implications for student provision and education in the new countries these students study in. Chapter 7 deals with the schools in China itself. It has undergone major development. China really wanted to have a good school system so they started taking lots of money and put it into their education budget. It also has increased the social status of teachers. Chapter deals with school improvements in Taiwan. He says the world is changing fast and it puts pressure on the people who work within the society. Taiwan has succeeded in doing so by lifting martial law and making education more conservative. It is also decentralized and is deregulated as well. Chapter 9 starts dealing with China's currency. People believe the Chinese Yuan is undervalued and it manipulates its currency to make its exports cheaper than imports, instead of it being more free. They also believe it is hurting the U.S. manufacturing jobs because many of the manufacturing jobs have moved to china. Chapter 10 focuses on its economic conditions. It's GDP has grown at 9.7% on an annual rate. They believe it could be the largest exporting country and could have the largest economy. It must first though work on improving their state-owned enterprises and banking system. They also must work pollution, and the growing income inequality. Chapter 11 basically goes into greater depth about the Chinese Yuan and how it is undervalued. Chinese believe it provides economic stability to the country. Many countries would like to do more to encourage the Chinese to raise their currency so they stop hurting everyone else. They have let the United States be the leader in doing this and the U.S. has many options of providing the pressure.

May 10, 2009

The China Executive

The book that I read was entitled "The China Executive-Marrying Western and Chinese Strengths to Generate Profitability from Your Investment in China." This was a fascinating read for someone like myself that is limited in exposure the Chinese business environment. We all know what a global superpower China is now and will become in the future. This book prepares you to conduct business with Chinese corporations as well as businesses that have locales in China. The aim of the book is to orchestrate effective Sino-Western relations by developing four key skills:
1) Effective communication-many communication gaps exist in such ventures, including the clash Western "contract" and Chinese relationship orientations.
2) Explore the effective ways of training the Chinese in the face of the human resource challeng in China.
3) Lead the Chinese the Chinese way, given the Chinese criterion for human relationships; i.e. feelings, reasons and rules and to manage oneself in the uncertain China business environment.
4) Drop the myth of Western management techniques' inapplicability to China and learn to balance managing and leading according to relevant circumstances.
The author, Wei Wang, explores many other different avenues of bringing Westerners to a more thorough understanding of the business environment in China. There is a great emphasis on building and embracing personal relationships and collectivism and networking vs. individualism in Western societies.

May 7, 2009

How China Grows

The book I’m reading is called How China Grows: Investment, Finance and Reform by James Riedel, Jing Jin, and Jian Gao. It talks about how China has developed and grown over the past 30 years or so to become a major economic player in the global market today. It starts off with the economic reforms which began in 1979, which created “incentives and institutions” which were not present in their former socialist economy. The reform was gradual, starting off with an industrial reform from 1978-1993, an agricultural reform from 1979-1985, and finally a transition to a market economy from 1994-2003. It then gets into things such as foreign trade and investment, and how the Chinese began to save money and invest in Chinese companies and also various other investors who invested in the Chinese market from other parts of the world. The fifth chapter gets into the banking industry reform because the financial market was majorly controlled by the banking industry, and the banking industry was mostly in control of the government. The next two chapters speak about the bond markets and stock markets and how the developments in these areas have helped with the success of the Chinese industry. Finally it examines the performance of the macroeconomic policies and how China had developed and expanded throughout their reform period. It also ties together a lot of the previous chapters into explaining how the economy and Chinese market had changed for the better or for the worse during various intervals throughout 1978-2005. The one child policy is also examined and they state that China has become an ageing country long before it was due to be, since the population is starting to peak and beginning to decline and the percentage of elderly (80+) is beginning to dominate the population.

May 4, 2009

Business Guide to China

The Book “Business Guide to China” goes over many different topics related to Chinese Businesses, and relocating businesses to China. There are many important ideas highlighted in this book. First off the management style used most often in China, and is considered to work everywhere, is the matrix management style. A reason for many businesses to relocate their operation to china is highly due to attaining low operating costs. Also China is a big country with a big population, which can only lead to one thing which is a big demand. The biggest barrier for relocating companies is the language. English is not well received by the majority of people in China, as compared to other Asian Countries. Also, competition in China is fierce, many businesses have similar ideas when bringing their businesses to China, and they are competing with one another and original Chinese Businesses. The author of the book, Frankie Chan, does not believe it will lead to a ‘bloodthirsty’ stage as it has done so in many other countries. Some important keys to getting ahead in Chinese Businesses are patience and persistence, both of which are on opposite ends of the continuum can lead to great things. And last but not least, as advertising is important in many countries especially here in America, advertising is the King in China. More and more businesses are increasing their budget to increase different kinds of adverting and promotions.

April 30, 2009

China & Globalization

In its quarter-century-long shift from communism to capitalism, China has transformed itself from a desperately poor nation into a country with one of the fastest-growing and largest economies in the world. Many reforms are the causing factor that is driving the economic genesis. The author, Doug Guthrie, highlights the social, cultural and political factors fostering this revolutionary change. It focuses primarily on how economic structural change is driving the processes, but discusses many other issues as well politics, social change, reform, international economics, and cultural change. Doug Guthrie covers the social, economic, and political factors responsible for the revolutionary changes, and interweaves this broader structural analysis with a consideration of social changes at the micro and macro levels. The book also considers the potential for further change for China.