Hofer / Ebel Business Success in China

1. Auflage 2006
ISBN: 978-3-540-34615-9
Verlag: Springer Berlin Heidelberg
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 272 Seiten

China is the world's largest power region, achieving economic growth rates that exceed those of most industrialized countries. In this book practitioners of international companies are offered valuable insights and lessons from established and successful managers, academics and consultants. The book is divided into three parts: 'Opportunities and Challenges in China', 'Strategies for Market Entry and Business Success' and 'Practical Insights from China'. It covers a variety of topics such as business strategies, branding, pricing, market research, legal constraints and successful business relations.

Autoren/Hrsg.

Hofer, Markus B.

Ebel, Bernhard

Inhaltsverzeichnis

1;Preface;5
2;Contents;7
3;Part One Opportunities and Challenges in China;9
3.1;The Rise of the Dragon;11
3.1.1;1 A Giant in a Rising Region;11
3.1.2;2 The Chinese Business Approach;14
3.1.3;3 Barriers for Business Success;16
3.1.4;4 Challenges and Opportunities in China;17
3.2;The Chinese Consumer Puzzle - Placing Branded FMCG in the Chinese Market;19
3.2.1;1 Who Is the Chinese Consumer?;19
3.2.2;2 Brand Perceptions and Preferences;22
3.2.3;3 Branded FMCG – The Retail Sector as Gatekeeper;28
3.2.4;4 Management Implications;33
3.3;After the Hype: Investment in China?;37
3.3.1;1 From Delight to Disenchantment;37
3.3.2;2 Why Is So Little Money Being Made in China?;39
3.3.3;3 Conclusion: Investment in China?;44
3.4;The China Boom - What’s Left for Us?;47
3.4.1;1 The Yellow Peril?;47
3.4.2;2 China is Well Attuned to Globalization;48
3.4.3;3 China is Fortunate to Have No Competition;49
3.4.4;4 Opportunities for the West;50
3.4.5;5 The Demands of Globalization;51
3.4.6;6 The Concubine Economy;51
3.4.7;7 The Globalization Trap;52
3.4.8;8 What’s Left for Us?;53
3.4.9;9 China Creating a More Just World – At Our Expense;54
3.5;Tao, Strategy and Li;57
4;Part Two Strategies for Market Entry and Business Success;61
4.1;Conquering the Dragon – Entry Strategies for the Chinese Market;63
4.1.1;1 Does the Earth Tremble?;63
4.1.2;2 Should You Conquer the Giant?;64
4.1.3;3 How Can You Conquer the Giant?;67
4.1.4;4 Where Should You Conquer the Giant?;71
4.1.5;5 Conclusions;74
4.2;Competing in the Dragon’s Den: Strategies for a Changed China;77
4.2.1;1 Introduction;77
4.2.2;2 The Challenge of Local Competition;78
4.2.3;3 Rethinking Competition in China;80
4.2.4;4 Winning in the Dragon’s Den;86
4.2.5;5 China and Beyond: Preparing for Tomorrow’s Global Battle;92
4.3;Business Strategy in China’s Transformation;95
4.3.1;1 The Party-state’s Transformation is Open-ended;95
4.3.2;2 China’s Business Conditions;98
4.3.3;3 Managerial Implications of China’s Transformation;100
4.3.4;4 Conclusion;107
4.4;A Guide to Business Success in China for Foreign Enterprises;109
4.4.1;1 Introduction;109
4.4.2;2 China’s Macro-Economy;112
4.4.3;3 China’s Market Characteristics;116
4.4.4;4 The Influence of Chinese Culture in Enterprises;120
4.4.5;5 The Uncertainties;124
4.5;Effective Pricing Strategies for Foreign and Chinese Companies;127
4.5.1;1 Introduction;127
4.5.2;2 Pricing Basics;127
4.5.3;3 Pricing of Chinese Companies in China;132
4.5.4;4 Pricing of Chinese Companies in Foreign Countries;133
4.5.5;5 Pricing of Foreign Companies in China;136
4.5.6;6 Conclusion;138
4.6;The Run to China – and the Need of Better Information and Analysis;139
4.6.1;1 China’s New Role As a Global Player;139
4.6.2;2 Positive Developments in the Economy;143
4.6.3;3 The Structural Problems in the Economy – Benign or Malign Neglect of the Foreign Corporate Sector?;147
4.6.4;4 A Probable Chinese Strategy and Its Impact on Foreign Companies;151
4.6.5;5 Foreign Companies and Psychology;154
4.6.6;6 Summary;157
4.7;Market Research as a Module in Market Strategies in China;159
4.7.1;1 Introduction;159
4.7.2;2 History of Market Research in China;161
4.7.3;3 The Industry;162
4.7.4;4 Reasons for a Detailed Market Research;164
4.7.5;5 Types of Studies;168
4.7.6;6 Methods of Research;170
4.7.7;7 Challenges of Market Research in China;173
4.7.8;8 Conclusions;175
4.8;Legal Constraints on Business in China;177
4.8.1;1 The Chinese Legal System;177
4.8.2;2 The Foreign Investment Regime;181
4.8.3;3 Law in China – Restriction or Opportunity?;185
4.9;Successful Business Relations with China –To-Dos and Taboos;187
4.9.1;1 Getting in Touch and Starting Business;187
4.9.2;2 Gifts;189
4.9.3;3 Business Cards;189
4.9.4;4 Communication Style;190
4.9.5;5 Separation of Facts and Person;194
4.9.6;6 Setting up Business Connections;194
4.9.7;7 Keeping Business Relations Alive;195
4.9.8;8 Leadership Culture;195
4.9.9;9 The Six Faces2;196
4.9.10;10 Negotiations;198
4.9.11;11 Conflicts and Conflict Management;199
4.9.12;12 Dos and Taboos for Restaurant Visits;200
5;Part Three Practical Insights from China;205
5.1;The Insurance and Banking Sectors in China;207
5.1.1;1 China – a Growth Market;207
5.1.2;2 Barriers to Financial Services Providers;209
5.1.3;3 Causes of the Barriers;211
5.1.4;4 Getting Past the Barriers;214
5.1.5;5 Strategic Options;216
5.1.6;6 Prospects for the Future;218
5.2;Automotive Dragon Power in China;219
5.2.1;1 Market and Growth;219
5.2.2;2 The Automotive Industry in China;221
5.2.3;3 Strategies of the Chinese and Multinational OEMs;224
5.2.4;4 Conclusion and Outlook;227
5.3;Business Development in China: Volkswagen’s Involvement in this Emerging Market;231
5.3.1;1 Introduction: China’s role in the Context of Internationalization of Companies;231
5.3.2;2 China’s Diversity and its Magnetic Effect on Investors as well as the World Wide Importance of the Chinese Automobile Market;232
5.3.3;3 Volkswagen's Involvement in China;237
5.3.4;4 Chances and Risks of a Foreign Involvement in China and Joint Ventures As a Successful Form of Cooperation in the Market;242
5.3.5;5 Conclusion – China: A Rapidly Developing Market With Great Potential;248
5.4;Engineering Business in China;251
5.4.1;1 Introduction;251
5.4.2;2 Engineering Education in China;252
5.4.3;3 R&D Activities in China;253
5.4.4;4 Competitive Intelligence;255
5.4.5;5 Development of the Chinese Machine Tool Market;257
5.4.6;6 The Shenyang Machine Tool Group – An Engineering Success Story;259
5.4.7;7 Conclusion;260
5.5;Market Entry and Business Success in PR China– The Case of MAN Roland;263
5.5.1;1 Introduction;263
5.5.2;2 Nearly 50 Years of Presence in China;264
5.5.3;3 Market Leader in Newspaper Presses;266
5.5.4;4 Strong Position in Packaging Printing;267
5.5.5;5 China – Printing Market with a Future;268
5.6;Invest in China – How to Find the Right Location;271
5.6.1;1 Introduction;271
5.6.2;2 Analyses of Location Criteria;273
5.6.3;3 Evaluation of Location Criteria;277
5.6.4;4 Conclusion;279
6;Authors;280

Leseproben

A Guide to Business Success in China for Foreign Enterprises (S. 101-102)

Kang Gang Hu

GE-AS Co. Ltd., Shanghai

1 Introduction

China‘s fame as one of the four ancient civilized cultures is well known, and people are also familiar with China’s achievements after 1978 when the country opened to the outside world. Many foreigners believe themselves to be sinologists, or „China Experts", after they have made several trips to China. This assumption is a big mistake. In fact, even native Chinese cannot claim to be totally familiar with this country, particularly in these rapidly changing times. A Chinese proverb states „only study can make people aware of their ignorance", and this proverb is important both to individuals interested in China and to enterprises that want to succeed in China.

1.1 China’s Age-old Tradition

The first difficulty for foreigners is, of course, language. Firstly, the Chinese characters are pictographs and Chinese also differs from Western languages in that it is a monosyllable language. Secondly, foreigners will find it hard to communicate with Chinese, because most Chinese receive a more limited education than westerners and have little proficiency in foreign languages. Even after foreigners have stayed for a long time in this country and have mastered Chinese sufficiently to be able to communicate without a translator, however, they are still likely to meet obstacles when talking with Chinese people.

This cultural obstacle stems from a lack of unvoiced understanding of the different culture and is by no means a phenomenon unique to China. Everyone can experience it when meeting foreigners in one’s hometown, but this lack of unvoiced understanding will become more obvious, if the history and culture of the country are long and rich. China is a country with a 5,000-year old civilization. The Han Nationality has ruled this country for more than 2,000 years. Therefore China’s profound cultural influence can never be underestimated. Since the Han Dynasty, Chinese culture began to evolve with Confucianism at its core.

This culture was not spread or extended through schools, but took root in the people’s minds by social ethics through the people’s self-regulation. This cultural influence can be found everywhere, and a failure to understand it will create obstacles. This is why foreigners will still find difficulties in communicating with Chinese even after they have mastered the language. Understanding a foreign culture and forming an unvoiced understanding of this culture will take more time and be harder than just learning the local language, and for some it will even be an insurmountable task.

Conclusion 1: Mastering a language is only the beginning: understanding a culture constitutes the basis for communication.