Contenu connexe Similaire à Doing Biz In China Sme (20) Doing Biz In China Sme1. “Doing Real Business in China”
information for SME’s
Stuart Patton & Lee Styger
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2. About the Team
SOURCING
10 Yrs CHINA EXPERIENCE
SUPPLIER
MANAGEMENT
START UP'S
BIZ DEVELOPMENT
BLUE CHIP
CONNECT2.BIZ US to CHINA
STUART
TECH TRANSFER ASIA
PATTON EURO to CHINA
ESTABLISHING STRATEGIC
PARTNERSHIPS / JV
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3. About the Team
IMPROVING HK COMPANIES
96' GOV.
CONSULTANCY
CHINA THREAT TO HK
INTERNATIONAL
BIZ DEVELOPMENT
START UP
CONNECT2.BIZ LEE
STYGER
GLOBAL PROJECT MANg
GLOBAL SUPPLY CHAIN DEV. TECH TRANSFER
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4. Macro View
MISSION
REPRESENTATION
/ACTIVITY
CONNECT2.BIZ
Connect2
MACRO
view
OBJECTIVE
GOAL
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5. Sectors
EDUCATION
CONNECT2.BIZ
TECHNOLOGY Connect2
sectors of
Business CleanTech
MANUFACTURING
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7. China Touches Us All
You cannot ignore the critical mass of China
CHINA
and
the
CONNECT2.BIZ
fact
it
Touches
all
of
us - directly or indirectly
So if you’re an SME in business what do you do about
CHINA
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8. Don’t ignore your changing environment
Sometimes you need to stop and look around to see
what help is available to you
“No, no, no - I can’t be bothered to see any crazy salesman -
We’ve got a battle to fight!”
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9. Take time to see who can help you
CONNECT2.BIZ
Take some time out to think about what strategy you
may develop, to ensure any effect from China on your business is
managed as a
POSITIVE outcome and not a NEGATIVE outcome
Look around for help and advice, share knowledge and experience
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11. China Macro
Population 1.3 B
250 M
Labour force 800 M
Internet
CONNECT2.BIZ
GDP (PPP) $7.043 trillion
users....
368 M main line GDP 11.4% (07) 9.8% (08)
Internet
phones Inflation 4.7% (07) 7% (08)
infrastructure
480 M Unemployment 4%
continues to
Cell Phones Exports $1.221 trillion
grow at a
Imports $917.4 B
fast pace
75,000 KM of Railway
1,600,000 KM of Roads
467 Airports
1,775 Registered ships
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12. China Macro
GDP by Sector
Agriculture 11.7%
Export Partners Industry 49.2% Import Partners
Services 39.1%
Japan 14.6%
USA 21%
CONNECT2.BIZ
S.Korea 11.3%
HK 16% Labour by Occupation
Taiwan 10.9%
Agriculture 43%
Japan 9.5%
USA 7.5%
Industry 25%
S.Korea 4.6%
Services 32% Germany 4.8%
Germany 4.2%
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13. China Macro
The Natural Evolution from Low Tech to Higher
%
#$
!quot;
Technology
CONNECT2.BIZ
!quot;#$
People Employed in the Process
CHINA unlike any other Asian country can still backfill the
low tech end because of
critical mass of population
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14. China Macro
The Natural Evolution from Low Tech to Higher
%
#$
!quot;
Technology
.
&,
-
CONNECT2.BIZ
+,!
**'
()
'!
%&
$
!quot;#
!quot;#$
People Employed in the Process
CHINA unlike any other Asian country can still backfill the
low tech end because of
critical mass of population
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15. China Macro
The
Coastal
regions
have
been the
first
to develop
Future
Development
inland
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16. China Macro
By way of example
Guangdong, the 1st
region to open up,
now has 21 Cities,
Guangzhou (16M ) and
Shenzhen (13M) being
the largest.
With a Pop. 110 M
Guangdong is
made
up of
80M residents
+
30M migrant
workers
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17. China Macro
EXPERIENCE
UNDERSTANDING HANDS-ON
CONNECT2.BIZ
WHY
CONNECT2
KNOWLEDGE MANUFACTURER
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18. Matchmaking
SUPPLIER MATCHING
TYPICAL APPROACH….
MOST SERVICES WILL COMPARE YOUR NEEDS AGAINST A DATABASE
FIND YOU 3 POSSIBLE SUPPLIERS BY PHONE SEARCH
MAKE THE INTRODUCTION FOR YOU
THEN YOUR ON YOUR OWN………
CONNECT2.BIZ
CONNECT2 APPROACH
WITH Connect2 WE WOULD INITIALLY HOLD A FACE TO FACE BIZ CLINIC
CONFIRM YOUR DETAILED NEEDS
DEVELOP A SHORT LIST OF SUITABLE SUPPLIERS
VISIT THE SUPPLIERS AND PROVIDE YOU WITH A VISIT REPORT
ESTABLISH AN AGREED TIMETABLE FOR VISITING THE COMPANIES
ISSUES TO CONSIDER:
SIZE OF COMPANY - You need to be relevant
MANAGEMENT CULTURE - Style and communication
SKILLS BASE – what level, are they gaps, tacit knowledge
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19. Cost vs Price (Basic rule of thumb as guide only)
!,*-(% ./#$%
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(!!/0$(1)/%
CONNECT2.BIZ
2/3+%0quot;quot;3%
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!,*-(%*#%8quot;3/%!quot;80/$($*2/%quot;-%quot;2/3,/(9%:%)(1quot;'3%:%/-/37+;%<%1'$%-quot;$%8($/3*()#%
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21. What to Look For
WHERE TO LOOK
USE YOUR INTUITION
CONNECT2.BIZ WHAT TO
LOOK FOR
THE DON'Ts THE DO's
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22. Where to Look
CHECK OUT ALL YOU CAN
BACKGROUND SEARCHES
WHERE TO
CONNECT2.BIZ LOOK
ESTABLISH A SHORT LIST
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23. The Do’s
INVOLVE A LOCAL YOU CAN TRUST
PHOTOGRAPH WHAT YOU SEE
READ ABOUT THE CULTURE
CONNECT2.BIZ
ASK QUESTIONS
THE DO'S
LEARN TO SAY HELLO
STEP BY STEP
SHOW RESPECT
BE PATIENT
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24. The Dont’s
EXPECT MAGIC ASSUME ANYTHING
YES DOES NOT ALWAYS
MEAN YES MAKE INSTANT DECISIONS
CONNECT2.BIZ THE DONT'S
LEAVE YOUR COMMONSENSE
AT HOME SEDUCED BY PRICE
WORK OVER THE
JUST VISIT AN EXHIBITION
INTERNET ONLY
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25. Intuition
MAKE SURE WHAT YOU SEE
=
WHAT YOU ARE TOLD
CONNECT2.BIZ
USE YOUR
INTUITION
LOOK WITH YOUR BRAIN / EXPERIENCE
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26. Culture
“Despite popular beliefs to the contrary, the single greatest barrier
to business success is the one erected by culture”
Edward T Hall & Mildred Reed Hall
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27. Culture
red
• If you write their name in ____ colour, it is extremely bad luck
and people feel upset (Japan, China)
• People appreciate if you call their [first name/ surname ]
CONNECT2.BIZ
(Japan, China)
a clock
• Sending _______as a gift, means that you want to end the
friendship or relationship with them (China)
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28. Culture
Poor cultural
12
understanding
can kill a potentially
good relationship
CONNECT2.BIZ without you ever
9 3
knowing......
Take time to
understand key
6 cultural
differences
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29. Culture
“In an organizational and cultural context more can be gained by
seeking to leverage rather then subdue opposite forces.
Integrating potentially conflicting opposites into a harmonized
whole rather than sidelining them as inconsistencies, can unleash
great opportunity”
Nick Dallas
Dallas N: How to Do Business in China, McGraw Hill, 2007, ISBN 9780070138094
Copyright © Eur. Ing., Dr Lee E J Styger
30. Communication
MAKE IT SIMPLE
MAKE IT OFTEN MAKE IT RELEVANT
CONNECT2.BIZ COMMUNICATION
SAY IT IN MANY DIFFERENT WAYS
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31. Communication
COMMUNICATION IS A 2 WAY PROCESS……….
Which requires transmitting……….
and............receiving
listening to what is not said is sometimes
CONNECT2.BIZ more important that what is said
Anyone in the transmit only style will never
be successful in China - or anywhere else
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32. Communication
Bad communication screws up the best teams….every time
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33. Communication
Saying the same thing a different way can make a
big difference to the understanding
CONNECT2.BIZ
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34. The Honeymoon....well at the start
The first quotes
Exchange business cards
look great,
at an exhibition, Time to order that Yacht !
samples are top
“Love at first PRICE “!
quality
Turn off
9'4567 existing
CONNECT2.BIZ
suppliers
3'45678
Quality problems.....
How come all our savings
Customers are loosing confidence Delivery problems.....
have disappeared in travel
in our ability to resolve the problems, Services levels fallen.....
costs for staff going out to
ours and theirs.!!! Customer complaints...
resolve supplier issues....
Who’s going to pay !
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35. Communication.....see, do, hear.
You can do all the desk research you
want
-
attend as many functions as there are
-
but to gain knowledge you must
walk the walk ..and talk the talk
CONNECT2.BIZ
You MUST visit suppliers and see for
yourself, you should look to get local
support and you MUST ensure you can
manage the supplier, be prepared to
transfer appropriate knowledge.
Make sure you have a strategy that
works for YOU, work on a step by step
basis, its the only way to gain
confidence and trust....both ways.
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36. Communication....see, do, hear.
On the surface the same, but underneath there is a difference -
depth of knowledge is important if the environment is changing
Make sure what you see
is in line with what you are told...
If not dig below the surface.
CONNECT2.BIZ Never assume everyone has your
experience and knowledge,
especially on your products and
processes...even if they say so.
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38. When in a Hole
Sometimes is not possible to
dig yourself out without help
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39. What to Do
BIZ STRATEGY
CONFIRM
CONNECT2.BIZ
THE TRIP
GETTING
STARTED
PREPARE
CLEAR THE FOG
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40. On Strategy & Success
“He who knows the art of the direct and indirect approach will be
victorious. Such is the art of maneuvering”
Sun-tzu
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41. A Strategy for Competing in a global world..
How to compete with the big fish, and remain a successful SME.....
CONNECT2.BIZ
Become part of a knowledge-based Connect2 business cluster, work with others your size, but
together create a much bigger opportunity.............................
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42. On Strategy & Success
“Sometimes it is better not to take a straight road to your
destination”
Old Chinese Proverb
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44. The Art of the Possible - Positive Change
Sometimes we need to look at things from a different perspective to
see the opportunity
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45. What is a Chinese SME looking for from a Western SME
TECHNOLOGY TRANSFER
2 WAY LEARNING PROCESS
WHAT IS A
CONNECT2.BIZ
TRAINING AND DEVELOPMENT
CHINESE
SME
LOOKING
FOR
LONG TERM PARTNERSHIP
SHARE COSTS SHARE REWARDS
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46. A Safe Bridge
For SME’s, Connect2 provides you with a safe bridge to China West to East, and
East to West.
CONNECT2.BIZ
EURO
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47. The Long-haul
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Our objective is to……
CONNECT2.BIZ Provide you with a unique
Make sure you are not Make sure you meet
China footprint representing
trying to juggle with all your deadlines…..
your business needs…..
issues …..
Ensure you have no Get the balance right
unwanted surprises.. for your business…..
Copyright © Eur. Ing., Dr Lee E J Styger
48. Old Chinese Proverb
“If you don’t find the right partner you could be lying in the same
bed but dreaming different dreams”
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49. thank you for your time
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