美国公司如何理解中国文化与国情.ppt

美国公司如何理解中国文化与国情 Still waters run deep.流静水深流静水深,人静心深人静心深 Where there is life,there is hope。有生命必有希望。有生命必有希望Talk Outlinen nChina Opportunityn n6 Ingredients to Success in Chinan nMicrosofts Presence in Chinal lEarly strugglesEarly strugglesl lRecent successesRecent successesn nConclusionChina OpportunityHuge growing market“The single most important thing to happen in our“The single most important thing to happen in our lifetime will be the emergence of China.”lifetime will be the emergence of China.”John Thornton,former President of Goldman Sachs John Thornton,former President of Goldman SachsNow a Professor at Tsinghua UniversityNow a Professor at Tsinghua UniversityGDP growth 9%per year since 1978.GDP growth 9%per year since 1978.Consumers saving$1 trillion per year.Consumers saving$1 trillion per year.2002:China became#1 mobile phone market.2002:China became#1 mobile phone market.2004:China will become#2 PC market.2004:China will become#2 PC market.Next 5 Years:Software&services CAGR=50%!Next 5 Years:Software&services CAGR=50%!China OpportunityWorlds Largest Labor ForceWorlds Largest Labor Force“Through skillful control of residency,Chinas 900 million rural“Through skillful control of residency,Chinas 900 million rural residents will gradually move to cities and take jobs in residents will gradually move to cities and take jobs in manufacturing or information processing,perhaps at 20-30 million manufacturing or information processing,perhaps at 20-30 million per year.This could give China a sustainable supply of low-cost per year.This could give China a sustainable supply of low-cost labor for the next 20-30 years.”labor for the next 20-30 years.”Kenichi Ohmae,Kenichi Ohmae,The China Impact.The China Impact.n nTraditional industriesTraditional industriesl lMany cities with good infrastructureMany cities with good infrastructurel lPeople inflow from rural to citiesPeople inflow from rural to citiesl lExcellent process&know-how in manufacturingExcellent process&know-how in manufacturingn nKnowledge economyKnowledge economyl l150,000 computer graduates/year150,000 computer graduates/yearl lGreat emphasis on educationGreat emphasis on educationl lBut IT&software significantly lag IndiaBut IT&software significantly lag IndiaMarket Opportunity is Lucrativen nVolkswagenl l40%market share in China40%market share in Chinan nMotorolal l20%of global revenue comes from China20%of global revenue comes from Chinan nKodakl lIn 4 years,China went from 17In 4 years,China went from 17thth to 2 to 2ndndn nIntell l$4+billion revenue in China$4+billion revenue in Chinan nLOreall l“Imagine,1.3 billion lips!”“Imagine,1.3 billion lips!”-Lindsay Owen-Jones,CEO,LOreal.-Lindsay Owen-Jones,CEO,LOreal.6 Ingredients to Success in ChinaChallenges&Successful Formulan nBuild strong government relationshipsn nPlay by Chinas market rules n nMake a long-term commitmentn nThe local economy is the top priority n nNurture local people n nBuild trust,not PRBuild Strong Government Relationshipsn nUnique power of governmentUnique power of governmentn nRelationships required at all levelsRelationships required at all levelsn nThe spirit of the law matters more The spirit of the law matters more n nChinas culture is built on trust,relationships,Chinas culture is built on trust,relationships,mutual respect.mutual respect.n nThe concept of face is very important.The concept of face is very important.n nAvoid sensitivities and find every opportunity to Avoid sensitivities and find every opportunity to make China look goodmake China look goodn nNegotiations are bottom-up and informal.Negotiations are bottom-up and informal.“It cannot be overstated the importance of accommodating the government.John Stuttard,the New Silk Road.Play by Chinas Market Rules n nExpect to respect“Chinese market”Expect to respect“Chinese market”n nThe government for their own reasons what The government for their own reasons what rules to apply and who they would like to do rules to apply and who they would like to do business with.business with.n nWhile they value global standard practices,While they value global standard practices,they still expect MNCs to adapt to local rules.they still expect MNCs to adapt to local rules.n nMarket conditions change rapidly and often Market conditions change rapidly and often irrationally due to an immature market irrationally due to an immature market economy.economy.“We take pride in viewing ourselves as a very local company in China”Mike Zafirobski,COO MotorolaMake a Long-Term Commitmentn nContribute First and Benefit Later:Entitlement from power of marketn nMNCs must have long-term commitment.l lJV,investment,training,local partnership,JV,investment,training,local partnership,technology&know-how transfer technology&know-how transfer n nFriends may be given great opportunities“China has discovered its leverage.They now say If you want market access,give us technlogy”Erfei Liu,Chairman of Merrill Lynch China Local Economy is the Top Priority n nLocal companies are always preferredLocal companies are always preferredn nMNCs expected to help nurture local economy in MNCs expected to help nurture local economy in exchange for access to the China market(need exchange for access to the China market(need to move up the value chain)to move up the value chain)n nBonus:help local company build export businessBonus:help local company build export businessn nChina often ignores international standards and China often ignores international standards and attempts to build China standards attempts to build China standards n nIP Protection is weakIP Protection is weakn nLaws to protect local companiesLaws to protect local companies“Dont think Chinese companies deserve to lose to foreign companies when foreign companies have a better product.It is different that a foreigner is making money and not a Chinese.The downfall of Chinese companies will come back to hurt all citizens of China”Professor Tan Haoqiang,IT Influential in China Nurture Local Employees n nChina prefers MNCs that develop local talent to make them more competitive internationally.n nLocal talent is high potential,but inexperiencedn nSend overqualified,senior leaders who intend to repatriate“My boss asked me how to expand the IBM business in China.I answered first we had to grow the local people”Wilson Wong,first Chief Representative,IBM China Build Trust,not PRn nCorporate image requires much more than PR.Corporate image requires much more than PR.l lGood citizen in China helping local companiesGood citizen in China helping local companiesl lSingle message(like Chinas own)=unified org.Single message(like Chinas own)=unified org.n n“Boasting PR”is very negative in Chinese culture“Boasting PR”is very negative in Chinese culturel lLow-profile&humility is much betterLow-profile&humility is much bettern nPublic media is immature,powerful,manipulated Public media is immature,powerful,manipulated l lWhile positive PR may not help a companys image,While positive PR may not help a companys image,negative PR can damage a companys image.negative PR can damage a companys image.Microsoft In ChinaCommercial Sales&Commercial Sales&MarketingMarketing1992:Setup Beijing Office1992:Setup Beijing Office1995:Setup Microsoft China Ltd1995:Setup Microsoft China Ltd1996:Setup Shanghai&Guangzhou Offices1996:Setup Shanghai&Guangzhou Offices2003:300 employees 2003:300 employees Global Technical Global Technical Engineering CenterEngineering Center1998:established1998:established2004:300 employees2004:300 employeesMS IT Innovation MS IT Innovation Center/R&D/ATCCenter/R&D/ATC2004:300 employees2004:300 employeesMSR AsiaMSR Asia1998:established1998:established2003:150 researchers+200 interns2003:150 researchers+200 internsJoint VenturesJoint Ventures2004:2 corporations established2004:2 corporations establishedMicrosoft Lowlights in Chinan nMistakes on“respect”&“commitment”n nGovernment procurement lawn nPiracy&anti-Piracy measuresn n“Good enough”softwaren nManagement turnovern nCenter of media attentionn nSeveral strong but persuasive criticsMicrosofts Recent Successesn nBuild strong government relationshipsn nPlay by Chinas market rules n nMake a long-term commitmentn nThe local economy is the top priority n nNurture local people n nBuild trust,not PRBuild Strong Government RelationshipsMicrosoft and China AnnounceGovernment Security Program Agreement Beijing,China,Feb.28,2003 Steve Ballmer signs“Great Wall”collaboration with the Ministry of Education REDMOND,Wash.-June 27,2002 Microsoft shares Windows Source:Microsoft and China Ministry of Security Officially Opens Joint Information Security Technology LabBeijing,China,July 7,2003 Play by Chinas Market Rules n nTwo joint venturesTwo joint venturesn nSupport training centerSupport training centern nPartner with local Partner with local companies to comply with companies to comply with Government Procurement Government Procurement LawLawn nMSR Annual Conference MSR Annual Conference largest in China.largest in China.n nPartner plans:free end-to-Partner plans:free end-to-end support,channels,end support,channels,MVP Asia Summit MVP Asia Summit Make a Long-Term Commitmentn nMicrosoft Research helps Chinese universitiesMicrosoft Research helps Chinese universitiesl lResearch funding,scholarships,internships.Research funding,scholarships,internships.l lArticles&courses by Microsoft researchers on own initiative.Articles&courses by Microsoft researchers on own initiative.n nAddress digital divideAddress digital dividel lTechnical job training:thousands of unemployed workers Technical job training:thousands of unemployed workers l l5 million RMB donation to help handicapped Chinese learning5 million RMB donation to help handicapped Chinese learning n nDonationsDonationsl lProject hope schools,infrastructures,networking.Project hope schools,infrastructures,networking.l lSARS donations(company and employees)to ChinaSARS donations(company and employees)to ChinaLocal Economy is the Top Priority n nTraining Training l lSoftware colleges(MS Software colleges(MS employee is dean)employee is dean)n nAdding Chinese Adding Chinese partners to GISVs:partners to GISVs:l lElevating companies Elevating companies like CS&S to same like CS&S to same level as Accenturelevel as Accenturel lHelping to train,Helping to train,partner,develop partner,develop Chinese Sis and ISVs.Chinese Sis and ISVs.n nJVs&investmentsJVs&investmentsl lSteve Ballmer Steve Ballmer commitment to Cmitment to China.University Collaboration&Software CollegesUniversity Collaboration&Software CollegesJV PartnershipsJV PartnershipsNurture Local Employees n nIn Microsoft Researchl l2 Microsoft China employees 2 Microsoft China employees Corporate VPs Corporate VPsl lSeveral local employees now senior managersSeveral local employees now senior managersl lGrowth of many local employeesGrowth of many local employeesn nIn SalesIn Salesl lMicrosoft Greater China MSN Director from ChinaMicrosoft Greater China MSN Director from ChinaBuild Trust,not PRnChina elevated at same level as US and EuropenUnified China organization led by Corp VPnUnified China strategy to support local ecosystemlConsistent articulation of strategylLow profile leadership teamConclusionn nChina is a huge opportunityn nChina is uniquen nFlexible,sincere,committed companies will succeed in China