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The secrets for MNCs to succeed in China

Apr 18-2013   



 

----a discussion with the LBS MBA delegation

By Zhang Xiao

A MBA delegation from London Business School (LBS) visited the National School of Development and received warm reception from BiMBA representatives on Dec.10th.

 

     Set up in 1965,the  London   Business   School  is a international graduate school with expertise in business and management. Through the visit to BiMBA, the LBS delegation wishes to share some insights about how business should be operated in  China .

 

     Prof. John Yang,the International Dean of BiMBA, delivered a presentation on “Success Factors for MNCs in  China ” to the LBS guests. The punch line of the presentation is that, the core issue affecting the performance of MNCs in  China  is the issue of “people”. By notifying the fact that many MNCs failed their ambition as a result of their insufficient knowledge of the Chinese business environment, Yang stressed the importance of understanding the environment and understanding the people. Speaking of the high employee turn-over rate that bothered most MNCs in China, Yang said that people’s pursuit of short-term material gain, the insufficient space for promotion offered in MNCs, the distrust and dissatisfaction towards the foreign leader are all explanations. He posted a point that the most popular leadership style in  China  is the style inherited from the Confucianism, a leadership that keeps balance between the emphasis on performance & competition and the personal contact & amiability with the employees.

 

      In a following panel discussion, CEO of China Crest Professionals Consultancy, Ms. Nicole M. Bernard shared her experience of running businesses in  China . Ms. Nicole highlighted the importance of understanding the business environment, notifying that the management culture in  China  has shown a phenomenon of generation dis-continuum and the current trend of entrepreneurship is to be ambitious, effective and innovative. Another two features of the Chinese business model, as Ms. Nicole illustrated, are the considerable impact of government policies on businesses and the impact of traditional Chinese values on individual business behavior.

 

      CEO of Super 8 Hotels ( China ) Co. Ltd., Mr. Mitchell A. Presnick was the next speaker. He shared the story of Super 8’ s development in  China . Mr. Mitchell mentioned one common bug for MNCs in  China ---their positioning is overly high and the Chinese market doesn’t buy it. He owned the success of Super 8 in   China  to its solid penetration strategy----going local and target on a small group. On how to manage a business after penetration, Mitchell suggested that hiring more local Chinese as employees and allowing more profits to go to the local distributors ,can help a MNC to build a highly motivated and sustainable market,

 

The third panelist is Mr. William Valentino, General Manager for Corporate Communications at Bayer Corporation. Mr. William put forward the importance of CSR (Corporate Social Responsibility) for MNCs to pursue development in  China . He explained that the key success factor of Bayer in  China  is a close watch on the dynamics of the society, and its CSR strategy captured the urgency to construct a stable and sustainable society after the Chinese government advocated the harmonious society conception. Mr. William introduced Bayer’s actions to help build the medical insurance system in  China  and the immediate donation and aids for disaster relief after the 512 Sichuan  earthquake. He emphasized that, for MNCs to success in  China , they need to offer what the society really needs and focus on the long-term recognition of the market rather than the short-term return.

 

    After the panel, the LBS MBA delegation enjoyed a social at  Wanzhong   Building  with BiMBA student representatives. On behalf of BiMBA, Ms. XieYi from the international department expressed the pleasures to have the LBS guests and sincere hopes for LBS MBA program and BiMBA to have great co-operations in the future.

 

The secrets for MNCs to succeed in China

Apr 18-2013   



 

----a discussion with the LBS MBA delegation

By Zhang Xiao

A MBA delegation from London Business School (LBS) visited the National School of Development and received warm reception from BiMBA representatives on Dec.10th.

 

     Set up in 1965,the  London   Business   School  is a international graduate school with expertise in business and management. Through the visit to BiMBA, the LBS delegation wishes to share some insights about how business should be operated in  China .

 

     Prof. John Yang,the International Dean of BiMBA, delivered a presentation on “Success Factors for MNCs in  China ” to the LBS guests. The punch line of the presentation is that, the core issue affecting the performance of MNCs in  China  is the issue of “people”. By notifying the fact that many MNCs failed their ambition as a result of their insufficient knowledge of the Chinese business environment, Yang stressed the importance of understanding the environment and understanding the people. Speaking of the high employee turn-over rate that bothered most MNCs in China, Yang said that people’s pursuit of short-term material gain, the insufficient space for promotion offered in MNCs, the distrust and dissatisfaction towards the foreign leader are all explanations. He posted a point that the most popular leadership style in  China  is the style inherited from the Confucianism, a leadership that keeps balance between the emphasis on performance & competition and the personal contact & amiability with the employees.

 

      In a following panel discussion, CEO of China Crest Professionals Consultancy, Ms. Nicole M. Bernard shared her experience of running businesses in  China . Ms. Nicole highlighted the importance of understanding the business environment, notifying that the management culture in  China  has shown a phenomenon of generation dis-continuum and the current trend of entrepreneurship is to be ambitious, effective and innovative. Another two features of the Chinese business model, as Ms. Nicole illustrated, are the considerable impact of government policies on businesses and the impact of traditional Chinese values on individual business behavior.

 

      CEO of Super 8 Hotels ( China ) Co. Ltd., Mr. Mitchell A. Presnick was the next speaker. He shared the story of Super 8’ s development in  China . Mr. Mitchell mentioned one common bug for MNCs in  China ---their positioning is overly high and the Chinese market doesn’t buy it. He owned the success of Super 8 in   China  to its solid penetration strategy----going local and target on a small group. On how to manage a business after penetration, Mitchell suggested that hiring more local Chinese as employees and allowing more profits to go to the local distributors ,can help a MNC to build a highly motivated and sustainable market,

 

The third panelist is Mr. William Valentino, General Manager for Corporate Communications at Bayer Corporation. Mr. William put forward the importance of CSR (Corporate Social Responsibility) for MNCs to pursue development in  China . He explained that the key success factor of Bayer in  China  is a close watch on the dynamics of the society, and its CSR strategy captured the urgency to construct a stable and sustainable society after the Chinese government advocated the harmonious society conception. Mr. William introduced Bayer’s actions to help build the medical insurance system in  China  and the immediate donation and aids for disaster relief after the 512 Sichuan  earthquake. He emphasized that, for MNCs to success in  China , they need to offer what the society really needs and focus on the long-term recognition of the market rather than the short-term return.

 

    After the panel, the LBS MBA delegation enjoyed a social at  Wanzhong   Building  with BiMBA student representatives. On behalf of BiMBA, Ms. XieYi from the international department expressed the pleasures to have the LBS guests and sincere hopes for LBS MBA program and BiMBA to have great co-operations in the future.