Tag: Shanghai

“How many of you are married?” asked Dave Averne, LA 92. When most of the EMBA 43 students raised their hands, he continued, “How many of you got married on the first date?” No one.

Seth Patch, Foreign Service Officer and David Averne, Commercial Service Officer discuss “Bringing Business to China.”

In the opening session of the instructional portion of EMBA 43’s International Residency in Shanghai, Averne, a Commercial Service Officer stationed in Shanghai, along with Seth Patch, Foreign Service Officer, explained that matching U.S. companies who want to bring their business to China with Chinese companies who want to partner with them is like arranging a marriage. It takes more than just one meeting to have a strong, productive relationship.

Averne also shared statistics about the healthy and growing Chinese appetite for sending students to the United States for education, Chinese tourism in the U.S., and Chinese investment in the U.S. Patch discussed the inherently brand conscious nature of Chinese consumers, and the growing market for imported alcohol in China.

The “matchmaking” process, is straightforward, said Averne.  “A company contacts our office and says they want to take their business into East China. We work with our local staff and call around in the sector they are interested in. If, for example, it’s consumer goods–toys, we call 5-20 companies in this market that work as agents or distributors in the toy sector and ask if they are interested in meeting with the company. If 20 out of 20 are interested, we tell the company to come over immediately. If we get 5-10 out of 20, we see this as a pretty solid interest, worth having some meetings. If we get no one, that suggests there is no demand, and we don’t encourage the company to come over. ”

Joint Ventures in China: The General Motors Experience

Dennis Shorts, EMBA 43 and his uncle, Henry Yin.

The auto repair business, according to Henry Yin is different in China than the United States. “No one in China,” Yin said, during our second session of the day, “grew up working on the car in the garage with their dad. Everyone wanted to send their cars to the shop.”

Yin is currently China General Manager, SAF-Holland and was one of the key players in establishing the General Motors joint venture in China with Shanghai Automotive Industry Corporation (SAIC) in the 1990s.

Yin emphasized three factors as critical to success in building a Chinese business: Innovation, Relationships, and Discipline. In addition to describing GM’s innovative approach to auto repair, he explained that in China it took two and a half years to establish the relationship with SAIC that would likely have taken one year in the United States. In addition, GM considered nine potential partners during the time they were planning their move into China. In the case of the auto repair business, this process included sending a team of 30 engineers and sales people around China, essentially canvassing the potential territory for the auto repair business.

The joint venture process, Yin explained, cannot be rushed. To this day, the General Motors/SAIC relationship is considered one of the most successful joint ventures in China.

Business Panel Discussion: Cross Cultural Business

Lee Konczak moderates panel discussion. From left Konczak, Laurent Blaevoet, Liang Wang, Jessie Jiang, Frankie Yip, and Brian Ohlrich.

The afternoon session on Monday included a panel of business leaders with a wide variety of expertise in Chinese business. Some of the questions were answered as follows:

How do you see China’s slowing economy affecting your business?

Jessie Jiang, General Manager, Hill-Rom International, Inc, EMBA Shanghai Class 10 said, “Growth is not slowing for Health Care. We sell sophisticated ICU solutions. Although in every hospital in the US, electricity is very reliable, in China, Chinese government has recently invested a lot in hospital infrastructure in big cities and remote areas. Although in the US ICU nurses have to be certified, in China, a lot of the nurses are not certified.  In terms of patient safety, there’s a lot of room for improvement, including the training.” Jiang has extensive expertise in the Healthcare field.

What is it like to lead here?

Frankie Yip, Director, Strategic Planning at Emerson Climate Technologies, EMBA 37 said, “An incentive program can’t just be financial. Life and work balance plays a role. The new generation got financial support from their families due to the one child policy. New couples, new families have two parent families to support them if they need money for housing. There isn’t a lot of financial pressure on them.” Yip has been at Emerson for several years.

China is used to executing other people’s innovations. How are you innovating as opposed to executing other people’s innovations?

Brian Ohlrich, President, Fine Furniture, Shanghai Limited, EMBA Shanghai Class 5, said, “There hasn’t been much innovation in the table and chair design for many years. For me it’s shifting from foreign investment to local investment. In China, consumers are driven by brand. They trust western products because they believe it’s good quality and made with good materials. At my company, everything is made in China.. People see the brand, trust the brand, see our stores in China, and see that it’s a quality product. We are making what is not so much high end US branded furniture but furniture that is more scaled for China, smaller living spaces. The plan is to have a China designed furniture line this year.” Ohlrich has operated a retail furniture business in China for more than 20 years.

Laurent Blaevoet, Managing Director, Chargeurs Protective Films Asia, EMBA Shanghai Class 8 said, “We see a lot of small innovations, we see more and more innovative Chinese products FOR the Chinese market being requested by other markets, more and more Chinese standouts. There is huge investment going on in making more and more Chinese requirements that will be exported outside of China.” Blaevoet has lived in China since 1995.

How are the CFDA (China Food and Drug Administration)’s efforts to improve food safety affecting your business?

Liang Wang, Co-founder and COO, Pantry’s Best, said, “We try to avoid as much as possible artificial additives and use really natural ingredients. From the perspective of the CFDA, strict temperature control is very important. Although standards are set, reinforcement needs to be improved. Smaller Chinese cities still have  issues to be solved. Also, organic is a very popular concept. From Farm to table, also. People are pursuing this level of eating standards. Pantry’s Best is an e-commerce business specializing in high-quality, innovative desserts.”

On Tuesday, EMBA 43 boarded a high speed train to Suzhou, about 60 miles due west of Shanghai, to experience the Suzhou Industrial Park (SIP) International Trade Zone.  The journey that would normally take 60-90 minutes by car or bus took 30 minutes.

Pictured above: EMBA 43 students Tracy Reiter, Doug Stockton, and Teri Vermillion boarding the bullet train to Suzhou from Shanghai.

The 110 square mile master planned city of Suzhou is home to 3,000 international companies, and has a population of 1 million.

View across Jinji Lake from the Intercontinental Hotel in Suzhou.

Wilson Wong, GM of Caterpillar (Suzhou) Co., Ltd.

Our first stop was Caterpillar (Suzhou) Co., Ltd. Caterpiller broke ground in the SIP in 2008. Wilson Wong, GM, presented the company’s history and outlook before offering us a guided plant tour.

Wong explained that the average age of employees at the plant is 28, and that–as in other industries–it is challenging to keep this age group engaged and interested in this work.

EMBA 43 posing in front of the Caterpillar Plant in Suzhou.

We were not allowed to take photos in the plant itself due to stringent Intellectual Property concerns, but we did observe robots building the enormous earth movers as well as the systematic testing environments established for these giants prior to shipping them out.

Ted Hornbein sharing insights from living and working in China for more than 20 years.

In the afternoon, we heard from Ted Hornbein, a long-time resident of China currently running a company that provides parts for iPhones.

Among Hornbein’s insights was his unique perspective on what the Chinese educational system does not prepare Chinese students to do–innovate and work in teams.

In addition, now that a lot of industry is leaving China due to rising labor costs here, the question is not how you can manufacture in China cheaply to sell outside of China, but “How will you sell into China? It’s a market that demands attention in its own right.”

During Monday’s “Cross Cultural Business” panel discussion, EMBA 43 class member Tim Sims asked Jessie Jiang, General Manager of Hill-Rom International Inc, EMBA Shanghai Class 10, and Liang Wang, Co-founder and COO, Pantry’s Best what it is like to be a female executive in China.

EMBA 43 student Vamsi Narra exchanges business cards with Jessie Jiang

Jiang said, “I don’t really think you want to differentiate female or male. It doesn’t matter, you are the leader.  As a female, you have to find a smart way to achieve that. It doesn’t mean you have to work overtime. When I hear that the greatest people who are leading only sleep 5-6 hours per day, my instinctive feedback is, do you really need to work that hard, or should you be planning better?

“I have a 13 year old boy. I’m not a perfect mom. I’m also not a lousy mom. I moved from a big company GM, for an opportunity in a small firm that gives me more opportunity to have work life balance. I go with my son to do his activities. It’s about how you manage your work, do you have a good plan, from a female leader perspective.

“As far as hiring female team members, I always think that females have the advantages of multitasking. If you have two kids, you are awesome. You are making decisions, running a home like a CEO. If you can do that, it is easy for you to manage a company. I always think female employees, I completely trust them, I know they have to handle a lot of things at the same time. I find them very loyal, hardworking, even when they get married and get pregnant.  They also very appreciate it if you say it’s ok. More often in this case, this person will work very dedicatedly for you when they have children.”

Liang Wang talks to EMBA student Steve Schepman after the panel discussion.

Liang Wang’s perspective is different from Jiang’s. She said, ” I actually sometimes have a dilemma, choosing between a male and female candidate. When you hire from poor families like I do, if a female has a baby, she may have to go back to her home town. In China there is a different level of stress from the family. How supportive the family is will determine how far a woman can go on her career path. In China, work and life balance is even more crucial for females than for males.

“For me, I don’t have a baby yet, so I can focus all my energy on my work, but I really try to tell myself that work and life balance is important for all of my employees, not just the female. Although I have a bad habit of working a 15 hour day, I try not to let employees see it. It’s very intimidating. I try to give people a more balanced impression of my own life, so they don’t feel like if they climb to a high position they won’t have any life. It’s not easy to work as a top tier leader as a female, but it’s not impossible.”

With some class members still traveling, and many of us jet-lagged, the activities planned for Sunday were interesting, optional, and not terribly taxing. The first was a bus ride to  Zhujiajiao, a tourist-oriented village connected by canals and narrow alleys lined with shops selling steaming food and souvenirs of all kinds. From what I understand, there are numerous such villages around Shanghai, but Zhujiajiao is easily accessible from the city center where we are staying. We rode gondolas under arched bridges into the village, grateful that the boats had roofs due to the rain.

Window of Choc Choco fine chocolates at Zhujiajiao water town.

I practiced my negotiating skills and bought a Chinese flute for my stepdaughter. It was initially offered at 280RMB, but I negotiated down to 120RMB (about $20).

My team’s project for the global theme is fine chocolate in China, so I was happy to sample and do market research at Choc Choco located near the gondola dock. A few of us went into one of the waterside tea-houses to warm up.

South Bund Soft Spinning Materials Market

A wall of buttons at the South Bund Soft Spinning Material Market.

In the afternoon, we headed to the fabric market on the edge of what is referred to as the Old City of Shanghai. Daunted by the weather, a number of classmates returned to the hotel. Those of us who decided to check it out were delighted that it was a three-story building rather than an open air market.

Negotiations went into high gear at this raw materials warehouse where a mindboggling array of fabric and samples covered the walls and ceilings of all three stories of the building.

Ron Sparks buying a belt.

A fabric salesperson measuring Julie Thiessen for a dress.

Laura Tellman negotiating her order for a black trenchcoat.

Among others, Ron Sparks bought a belt, Laura Tellman ordered a trenchcoat, Jason English ordered a cashmere coat (after considering several options), and Julie Thiessen ordered a dress. All the orders will be ready for pick up on Wednesday!

Dinner with Fudan University EMBA 13

The final activity of the day took us to restaurant 365 near Fudan University, where our Chinese counterparts from Fudan University EMBA 13 joined us for a traditional Chinese meal.

Setting at the table at 365 restaurant, including doll-sized glass for “fire water” .

It started with appetizers, beer, and a liquor referred to as “fire water” that is so potent that it is served in tiny, doll sized classes.

Once restaurant staff began putting dishes on the enormous lazy susans on our round tables it was impossible to keep up. Beef, chicken, fish, lobster, vegetables, rice, tofu…and it just kept coming.

No one went to bed hungry.

Dinner with Fudan 13 at 365 Restaurant. Jason Corman, EMBA 43 (Center) and Mark Hernandez (Right) and xx (Left) visit with our hosts.

When I was packing to leave for my Executive MBA Class trip to China, I started to feel a good amount of foreign travel anxiety. As a grownup who has taken international business and pleasure trips on my own, I was mentally preparing for one of those trips–where you do all the navigating, planning, and getting to the hotel on your own. That anxiety disappeared when I encountered a half dozen of my fellow students waving and cheering in the Starbuck’s seating area at Lambert Airport.  I had forgotten I wasn’t going alone!

When we arrived at the Shanghai Airport, Frank Wong and Mr. Chin, our World Strides tour guides, were carrying “Washington University in St. Louis” signs. We couldn’t miss them, despite a gauntlet of taxi drivers eager to take us downtown.

The whole class of about 50 are coming from  multiple directions–the Denver cohort on their routes, some of the St. Louis cohort on different routes, some arrived before today, some are coming tomorrow–but it turned out that my United flight from Chicago combined with a second United flight that left minutes after ours included about 20 of my fellow EMBA classmates, plus a couple of spouses. We got to the hotel about an hour ago.

Vamsi Inkollu, EMBA Class 43, getting on the bus at Shanghai Airport.

We took a bus chartered for our group from the airport to the Shanghai Marriott Hotel City Center.

It took a surprising amount of time to get to our hotel–about two hours. On the way, Frank provided some Chinese and Shanghai history as well as an overview of the agenda for the week.

I was relieved to reach my room in the hotel. We’ve been warned numerous times not to drink water from the tap, not to eat foods washed with local water, to beware of pickpockets and kidnappers.

It felt wonderful to walk into a lovely, well-appointed room. There are unopened bottles of water, western electric plugs, and TV in English.

I didn’t need to bring my robe or slippers–both were provided! When my room-mate Lindsay arrives, however, I think we’ll need to lower the bathroom blind.

On the long ride to Shanghai.

In April, the partnership between Shailesh J. Mehta School of Management (SJMSOM) at the Indian Institute of Technology in Bombay and Washington University in St. Louis will officially launch its Executive MBA program, the only one in the world to confer a degree from both an Indian and an American university.

In preparation for the launch, Kurt Dirks, Bank of America Professor of Leadership and Olin Business School Senior Associate Dean of Programs, and Angie Bauman, Director of Admissions Operations traveled to India to engage with prospective students, conduct interviews and continue preparations for the inaugural cohort.

In addition, Professor Dirks, hosted an interactive and engaging seminar titled “Trust: A Leader’s Key to Success” on the Indian Institute of Technology Bombay campus.

Thirty guests, including  corporate friends, SJMSOM faculty and Executive MBA candidates joined the hour-long sessions where they walked away with several key takeaways from Professor Dirks’ research, including:

• Trust plays a pivotal role in a leader’s success
• Three elements of trust are competence, character and caring
• You can develop trust in a leader through behavior and orientatio
• You can develop a culture of trust through leader behavior and structural factors
• And, your orientation is pivotal – trust is a self-fulfilling prophecy

Following the presentation of his research, the audience engaged in an active Q&A session, which generated excitement for the soon to launch EMBA program. Over the next several months, key leaders from the Olin team, including Dean Mahendra Gupta and Professor Stuart Bunderson, will visit Mumbai to finalize preparation and continue the interview process.

Classes in Mumbai begin with orientation residency on April 22, 2015.