vol. XVI no. 1

				James Senn Senn, professor of computer information systems, has been working with a number of multinational companies in Europe, Asia and North America as they develop business in China. He is helping the companies, with whom he has worked for a number of years, address one or all of the following issues: creation and implementation of corporate strategy; market development strategies and practices; management development, focusing on operating managers, managers identified for executive positions and sales account teams; and identification of new product and service opportunities for Chinese markets. Based upon your visits, what are your impressions of China? My first trip was actually to Taipei, Taiwan some 35 years ago, and I first visited mainland China in the early '90s. At both times I was impressed with the ingenuity that I saw in the Chinese people, who were very hard-working and extremely proud of their country and city. I've also had the opportunity to see the countryside, away from the big cities. There you see a dramatically different standard of living and definitely a much different income level. Still, the people are smart and hard-working. I also spent one week in a People's Liberation Army conference center at the edge of Beijing province (about an hour and a half out of Beijing city). We used the center to work with the Chinese executives and the sales and marketing team of a well-known multinational high-tech firm. The entire complex was walled and guarded by the army, which also handled all facility and meal arrangements. It was an interesting and productive experience, and I had the chance to see activities from another viewpoint. I also had a number of discussions with various military officers and enlisted men and women (through a translator - none of the military personnel spoke English). It was truly a two-way learning experience, as they wanted to learn as much from me about the United States as I did from them about China. What cultural differences have you noticed the most in business and nonbusiness situations? The Chinese people have a long and deep history that influences many things they do. It really is true that they think in terms of decades and centuries while people in the United States think in terms of years. When visiting the Forbidden City (one of the biggest tourist sites in the country) the first time, I was struck that there were many, many more Chinese people visiting the city than there were European, Australian or American visitors. It has been that way on all my subsequent visits. It is very evident that life for both individuals and businesses in China is characterized by a great deal of uncertainty. When assembling business strategies for companies, whether focusing on competitive strategy or market development, it is always understood that the rules of operating could change tomorrow. Ordinary people recognize this as well. You accept it as part of the reality and as something that is unlikely to change anytime soon. What sort of changes have you seen developing in China? The speed at which things are happening in China is very rapid and still accelerating. Also, when the government seeks to implement a policy or facilitate business development, it can move very quickly. For example, in Shanghai, large sections of the city have been identified as development areas. When that occurs, existing buildings are cleared, new infrastructure is constructed and new structures are raised. Economic development is something we are familiar with in any major city. However, in China, the size of the area and the speed at which the development occurs can be quite rapid. Investment in infrastructure in China is also substantial. The widely discussed Three Gorges Dam and the construction of hundreds of miles of superhighway and new subway systems in a number of cities are all indications that the government is willing and able to undertake and complete huge infrastructure projects. On the other hand, even in major cities, you usually cannot drink the tap water (not even in top hotels). Bottled water is the name of the game. Water quality and air pollution are serious environmental issues. What do you think lies in China's economic and business future? China is without a doubt the largest market in the world, and yet only a fraction of the potential market for most products and services within China is currently being served. Hence, the expansion potential is huge, and the country has an extremely bright future. We will soon see products being designed in China rather than merely manufactured there. Also, the brand names of Chinese products will appear in global markets as early as this year. As successful and well-known Chinese companies increase their manufacturing and distribution capacity, they will seek to serve international markets. China is climbing the same economic and productivity ladder that we've seen in Japan, Korea, Taiwan, and Singapore. However, it is doing so much more quickly and on a vastly broader scale. At the same time, the government must pay attention to the banking and financial systems. They could be the Achilles heel in China just as they have been in Japan. Top | Back | Back to the beginning

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