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G20 London Summit > From the Forum
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Chinese businesses in the future(bbs.chinadaily.com.cn)
Updated: 2009-03-27 15:36 From zglobal No longer will Chinese Companies be able to operate as they have in the past. I feel that the rules for success have changed forever. Countries will react to the current problems and protect their own interests. Only those Companies that move with the times will survive. So, let's look at China's strengths and weaknesses... STRENGTHS. 1. A Nation of hard workers. Chinese people are amongst the hardest workers in the world. At least the proportion of hard workers is high. 2. An unspoiled Nation. Chinese people are not spoiled by excessive welfare and do not expect the government to provide handouts in times of trouble. 3. China has about the best access to the cheapest raw materials in the world. The west finds it difficult to compete when raw materials are more expensive. 4. Chinese Companies operate on lower margins. Western Companies tend to be greedier with margins than the Chinese who concentrate on volumes. 5. A cheap labour pool. Chinese Companies have access to a vast pool of labour. 6. Chinese are great at improvising to find a cheaper solution. 7. Chinese people generally have the opportunity to react faster to market changes. 8. The Chinese government is in a better fiscal position to support economic revival. 9. China has cleverly began investing in key resources. 10. Chinese has a unique and natural safety net for the unemployed where they can return to their village if need be. WEAKNESSES: 1. Chinese business are amongst the world's worst marketers and have a very poor record in developing brand names. 2. There is some evidence that the previous golden years have left some sections of Chinese society with unreal expectations. 3. China needs to transport goods to market in competition with local suppliers. 4. Chinese government is less efficient and streamlined than most in the west. Compliance can be a nightmare in China. 5. Much of the Chinese labour pool is untrained 6. Access to technology is much lower in China. 7. China is lost many foreign experts due to recent untimely visa changes. 8. Chinese business people are somewhat trapped in traditional thinking that restricts success in tough times. 9. Chinese business people are not generally trusted as much by the west, particularly in tough times. 10. China are the lowest spenders in the world and are unlikely to recover by local spending alone. What other factors can you think of? What do you see as the main positive or negative? How would you get things moving? For me personally, I believe that only a huge shift in culture and ideology would see China recover quickly. I see the traditional manner of Chinese businessmen and the lack of importance they place on marketing as the biggest issue. Overcoming this would take a massive change in thinking from the government all the way down. I feel that each of the inner circle of Chinese leaders should have a foreign personal assistant along with any Chinese assistance. I do mean an overseas Chinese, I mean a foreigner with an understanding of the problems China faces. If the inner circle do not understand the west such changes will never filter down. If China can open its mind to the west, I feel the future is quite unbelievable. For More Talks, Please Click Here! |
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