One Billion Customers: Lessons From the Front Lines of Doing Business in China
Extra Credit Book Review
Author: James McGregor
ISBN-13: 978-0743258418
By: David Hart
Overview/ Contribution to Knowledge
In his book One Billion Customers, James McGregor takes his readers on an insightful journey through fascinating and detailed stories that illustrate the complex business world in China. McGregor relies on his experiences to convey important principles he learned through his many years spent experiencing China’s business environment.
McGregor’s experience as both a journalist and a businessman in China provides a foundation for this book. His goal is to convey to the readers lessons they should learn before conducting business in China. McGregor intends to “show rather than tell what it is like to do business in China (p. xx).” His stories are loaded with practical advice. He notes that many foreign executives are simply unprepared to come to China (p. xx).” Often times it is a lack of understanding the Chinese business history, culture and environment that makes it challenging to conduct business. With a population well over 1 billion people, China presents incredible business opportunities.
The audience best served by this book includes those doing business in China as well as those considering or preparing to do business in China. Others interested in the Chinese business culture and history will also find this book to be intriguing. Finally, business people located anywhere will find nuggets of wisdom that they can learn from the experiences the author shares. Many of the lessons contained in the book can make people think about the cultural and psychological implications that can be applied to various business situations.
Where McGregor Excels
It is clear by reading this book that James McGregor is a master storyteller. Not only is he a good writer, but he chooses stories that are interesting to the readers. For example, he tells the amazing story of Lai Changxing (p.98). The history of this man captivates the reader. Americans may even somewhat relate to part of his story. Changxing’s riveting journey from being raised in a poor family in a small village to becoming a wealthy businessman is fascinating. He made a fortune smuggling items such as oil, cigarettes, and autos into China (p. 106). Many argue that his business practices crossed ethical boundaries. Later, he then had to flee China to escape prosecution from the government. McGregor’s strength is that he uses this story to make a point. He does not simply tell stories just because they are interesting or entertaining. He uses them to teach principles of doing business in China. He does not just tell the narratives, but he teaches his readers lessons they should learn.
McGregor also uses great detail in this book. As a journalist, he clearly has experience gathering facts from many different sources. A good journalist looks at all sides of an issue from various sources. McGregor appears to have done his homework. For example, he claims that his account of Changxing’s saga is “based on close reading and analysis of these often contradictory materials” (p. 98). He tried to get all sides of the story. He even tracked down Changxing in Canada to hear his personal version of the events that occurred (p. 117). Of course, as is the case with all writers, McGregor has his biases. He admits that he has made judgments about what he believes to be truth versus fiction (p. 98). It does seem as though he researched his facts before coming to his conclusions. I was impressed with the detail that he was able to gather in all of his accounts.
McGregor is very perceptive. He provides insightful commentary, weaving human nature with reality in order to make his points. He is a keen observer of China and its business practices. I was impressed with his ability to understand the events that he and others experienced. He not only understood the implications, but was able to extract lessons that his readers could learn from these events. At the end of each chapter, he has a heading entitled “What This Means For You.” He then explains what it is that he wants the reader to learn from the chapter.
He emphasizes the application of principles from the stories he tells. For example, in the chapter entitled “Eating the Emperor’s Grain,” the author speaks of first the “good”, then the “bad” followed by the “ugly” (p. 118). His advice sections are full of suggestions that cover all angles. He is very realistic in his commentary, not afraid of coming across as somewhat negative in his views. He tells it like it is. In doing so, he helps readers realize that business in China is no cakewalk!
An example of the author’s plainness is found in the fourth chapter. The author notes that “China can be a scary place to do business” (p. 127). However, in this instance he balances the negative tones by providing a hopeful statement. He says that “conditions for doing business are improving as the nation becomes more exposed to global business practices” (p. 127). Furthermore, he notes that “if your business is doing what is right for China, you can win a battle against the most entrenched and ruthless government foes” (p. 127). Throughout the text, the author’s tone is realistic yet hopeful. Yes, business is tough in China. However, if you develop the proper strategy and understand Chinese business and government, then you can become successful. This practical theme humbles the reader by stressing the importance of learning the necessary steps to achieve success in China.
One of the most reader-friendly features of this book consists of the end-of-chapter advice sections. McGregor labels each of these sections as part of the “Little Red Book of Business.” In these sections, the author uses bullet points to help the reader focus on the lessons he wants them to learn. These sections summarize the advice the readers should have gleaned as they read the chapter. For example, McGregor gives advice such as “Be tough. The Chinese respect it. Never tremble and obey if doing so will damage or destroy your business in China” (p. 153). He also says, “Frame your arguments to show how your business is good for China, not what is wrong with the Chinese government. You can’t make the system look bad” (p. 153). These particular examples can be explored more in depth when reading the chapter. In this particular case, the author teaches these lessons through his personal experiences with the Chinese government. McGregor negotiated with Chinese officials to help his company, Dow Jones, compete in the Chinese market (p. 127). His personal experiences interwoven with the stories of others provide the reader with a good variety of stories from which one can learn.
One recommendation I would make to someone reading this book would be to read the summary boxes at the end of each chapter before reading the chapter. Reading the boxes first gives the reader an overview of the principles to look for in the real-life stories in the chapters. Then, I would recommend for the reader to review the summary boxes at the end again after the chapters. There is a lot of information contained in this book. By reading an overview of the principles, the reader can get more out of the individual chapters.
McGregor is well qualified to write this book. His experience of living in China allowed him to witness firsthand the rapid expansion of the Chinese economy throughout the past two or three decades. He does an effective job of mixing in the history of business in China throughout the book. He helps the reader understand the many challenges and opportunities that business people have faced as well as continue to face.
Where McGregor Falls Short
The main weakness from my viewpoint in this book is that McGregor focuses mostly on big business examples. He tells fascinating stories of airplane manufacturers, newspaper companies, and other big businesses. However, he generally fails to focus much on small or medium-sized businesses in China. Many of the readers of this book may be considering doing business in China on a smaller scale than the examples discussed. It may be challenging for some readers to relate to the examples given. However, the advice summaries at the end of each chapter provide information that can be applied to anyone doing business in China.
McGregor’s writings also at times seem a little wordy. While detail can be a positive aspect of a book, I felt that there were times when he was too detailed. This was true both in the chapters as well as in some of the summary boxes. I felt that there were times when the author needed to simplify some of the chapters. In addition, although he used headings throughout the book, I felt that he could have added even more headings to help the reader better understand the transitions and the flow.
Interpretations and Summary
Overall, despite its weaknesses, I found this book to be a useful resource in better understanding how the front lines of business work in China. I particularly found the discussion on the future of China to be interesting. McGregor discusses the state of education. For example, he notes that China’s education culture has created a nation of people who cram for exams, learn by imitating, follow role models and absorb prescribed solutions for problems (p. 260). He says that the problem is that in modern China there “are no role models, no prescribed solutions, an no one to imitate” (p. 260). While I don’t know if this statement is completely accurate, I agree that it will be important for China to be willing to evolve in the realm of education.
I particularly found the discussion of Chinese MBA students to be relevant. Calling Chinese MBA students the “most aggressive and impatient in the world” (p. 268), McGregor discusses the recent history of MBA programs in China. He notes that there are some cultural changes that need to occur in order for Chinese managers to find success. For example, Chinese bosses often times give orders and analyze problems without input from workers (p. 269). The author argues that business schools need to transform their cultures by changing the way their students think. He argues that education in China prepares people to be led, not to lead (p. 272).
Does the future belong to China? McGregor believes that the answer to this question will be determined by whether the “Chinese elephant can transform itself from a rampaging sprinter into a methodical marathoner” (p. 295-6). This book does a great job of helping the reader understand that in order to find business success in China, one must understand the culture, government and business environment. In order to take part in this rapidly growing economy, foreigners need to realize that nothing is given. It takes hard work, understanding and relationships to be successful. The author makes this perfectly clear. One thing is certain- business in China is not for the weak or unprepared!
Thursday, May 12, 2011
Sunday, May 1, 2011
The Post-American World
Book Review: The Post-American World
Author: Fareed Zakaria
ISBN: 978-0-393-06235-9
By: David Hart
Introduction/Contribution to Knowledge
Fareed Zakaria’s book The Post-American World takes readers on a journey through history and modern times. He helps his audience to better understand how the current global environment is changing. The book’s title is somewhat misleading. One might deduct from the title that this book will be provide doom and gloom scenarios for the world’s current largest economy. This is not the case. Readers quickly learn that Zakaria has a generally optimistic view of globalization and its effects on America and other nations.
Zakaria, an Indian-American journalist, quickly introduces his readers to his view that America is not in decline. Rather, he argues that other countries are rising to catch up with America. He calls this the “rise of the rest” (p. 2). This book discusses globalization from the vantage point of politics, economics, and culture (p. 1). The author seeks to convince the reader that it is good for the world for other countries to expand economically. He believes the United States needs to be willing to adapt to the surrounding changes that are occurring as the result of globalization. He argues that the United States needs to create coalitions and share power to help both America’s economy and the world’s economy progress.
The Post-American World appeals to a variety of audiences. Zakaria’s writing style is easy to follow. Possible audiences include students, politicians, and economists. Those interested in politics may find this book provides helpful insights on what America needs to do to move forward in an increasingly globalized world. This book may not completely satisfy some academics who would prefer a more in-depth analysis of this complex issue. As a student, I found this book to provide fascinating insights into how globalization relates to politics, history and the future.
Strengths
In my view, this book’s biggest strength is its cautiously optimistic tone. I appreciate the author’s perspective that although there are challenges to overcome, globalization is positive for all countries. As long as the United States finds ways to adapt to this changing world, the future is bright for America and the world. I tend to agree with the idea that the future is bright for all of humanity. However, I realize that this attitude is good only when balanced with a willingness to solve and overcome the many great challenges that we face.
Zakaria notes that focusing on gloom too much does not prepare us to face our largest problems. He argues that many of our largest challenges are a result of our successes (p.27). He also notes that America’s relative economic weight may fall in the coming decades. However, his optimism shines through when he says “The decline need not be large-scale…as long as the United States can adapt to new challenges as well as it adapted to those it confronted over the last century (p. 41).” Perhaps this is wishful thinking, but it is refreshing to hear somebody with an optimistic viewpoint compared to the doom and gloom that is so prevalent in media and politics.
I also found Zakaria’s discussion of the history of globalization to be a good overview. His conversation of recent economic history revolves around the rise of the west, the rise of the U.S. after World War II, and now the “rise of the rest” (p.2). This historical context gives the reader the opportunity to put today’s global environment into perspective. It helps the reader understand how we got to where we are today.
Zakaria also effectively uses the limited amount of space he has in the book to proportionately discuss some of the key nations in globalization. He focuses especially on China and India. These two countries deserve significant discussion as they continue to play a major role in the world’s economy. However, he also discusses other parts of the world such as Africa (ie. p. 116).
I thought he was effective in reaching his audience regarding China’s role in the world. In speaking about China, the author effectively drives home the point that China is unique in many different ways. This can make it different to compare it to other world powers. This is important for the reader to understand. The world has never before seen a country like today’s China. It takes an open mind to understand the politics, culture, and economics of China. He notes that China’s main focus is on its growth strategy (p. 105).
Weaknesses
Although I consider this book’s optimistic tone to be its biggest strength, I also can see how some may see it as as a weakness. Some may believe that it is hard to be optimistic when so many challenges exist. Zakaria does talk extensively about many challenges that need to be overcome. However, some may wonder how he can have such a positive tone when many Americans see decline. For example, one may ask how globalization can be positive for the U.S. when unemployed, rural Americans are losing jobs to Chinese or Indian workers abroad. With the U.S. unemployment rate currently so high, and incomes stagnant, some may argue the future is not as bright as he suggests.
In addition, some may argue that the optimistic tone is unrealistic. The book was published in 2008, just as the recession was beginning to wreak havoc across America and the world. Some people may see his positive attitude as naïve. However, to his credit, Zakaria warns of problems within the U.S. political and economic system. He discusses some of the economic problems in the United States such as flat median incomes, high deficits, and low savings rates (p. 199).
Another issue some may have with this book is that the topic is too broad to be covered in less than 300 pages. Globalization involves many complex political and economic topics that require much discussion. Some might say that the book needs more depth in explaining certain concepts.
There are also times the author raises points that may cause the reader to stop and question. For example, he says that biological terror may “lack the dramatic results terrorists crave” (p. 16). In discussing America’s $13 trillion economy, he also notes that “modern civilization may be stronger than we suspect” (p. 17). The author may find that some readers disagree with his seemingly nonchalant attitude towards possible acts of terror or other issues.
Interpretations
I would recommend Zakaria’s book to those looking to better understand the effects of globalization. While some of his points may be debated, he writes in a way that makes the reader think. I found it interesting to note that Zakaria makes the same argument that James Fallows makes in the book Postcards From Tomorrow Square. Both Zakaria and Fallows believe that educating the world in America and keeping those people here will help the U.S. economy (p. 198).
It was interesting to note that a large percentage of America’s graduate science and engineering students come from foreign countries. One of the areas that really struck me in this book was the immigration policy discussion. Zakaria argues that in order to keep its edge in technology, America needs to make policies that allow immigrants to stay. Otherwise, he argues, immigrants will take their innovation skills home with them (p. 198). Of course, the topic of immigration is a broad one that includes many different types of immigrants. Zakaria and Fallows speak mainly about immigrants who come here to study and do research. Immigration policies are a heated political topic in the United States. People have strong opinions on both sides of the argument. Before reading Fallows and Zakaria, I had never thought of this interesting perspective.
Another theme that I thought was important in this book was that Americans need to become more open minded. As I have read various articles in preparation for my upcoming China trip, I have found this theme to be consistent with many of the readings. This book was no exception.
Zakaria notes that Americans are often naive to the world outside their country’s borders. He notes that “Americans rarely benchmark to global standards because they are sure that their way must be the best and most advanced (p. 46). He also notes that Washington needs to adjust and embrace a world with a “diversity of views and viewpoints (p. 214). I think these points deserve fair consideration. However, I also recognize that it is important to realize that Americans are not the only ones who may think like this. Human nature dictates that people in many countries are unaware of what the global picture looks like. I believe that this will get better as the world becomes smaller and more people are educated, but we still have a long ways to go.
Another issue the author says will affect America’s policies concerning a global future is politics. He notes that in order for the U.S. to progress, politicians from both sides of the aisle will need to compromise (p. 213). It is important for American politicians to make decisions that will help America benefit from globalization and competition from other countries. Politicians should not just look to the next election, but have a long-term outlook. Zakaria believes this long-term outlook is “highly unlikely” (p. 213). I agree that government officials need to focus more on compromising and focusing on the long run. Unfortunately, this is not the type of culture Washington D.C. has right now. Hopefully this will change in the future.
Zakaria also notes that America should evolve from its traditional superpower role. He believes that America should move from a top-down hierarchy into more of a role involving “consultation, cooperation, and even compromise” (p. 233). I agree with this, as long as other countries have the same type of attitude. It certainly takes two sides to be able to cooperate on complex problems.
Summary
My overall impressions of the book are positive. Although some may find the book to be lacking in depth, I believe the author is effective in communicating his message. The author certainly has his opinions, some of which are debatable. However, he engages his readers with his efficient and to-the-point writing style.
I especially found his thoughts on China to be insightful. As Napoleon said concerning China’s awakening, “when China wakes, she will shake the world” (pp. 87-88). Perhaps today we could expand the meaning of this quote to include many other countries. Having an understanding of China, India, and other developing countries is crucial for both politicians and businessmen. The world is truly becoming smaller, and other countries are rising.
As America seeks to continue its success in the modern world of globalization, it would do well to take into account some of the lessons learned in books such as this. I would recommend for decision makers to not only read this book, but to also read other books on the subject. The more America’s policy makers understand this complex world in which we live, the more likely they are to make better decisions. These decisions will help America find continued success and better adapt to an increasingly globalized world.
Author: Fareed Zakaria
ISBN: 978-0-393-06235-9
By: David Hart
Introduction/Contribution to Knowledge
Fareed Zakaria’s book The Post-American World takes readers on a journey through history and modern times. He helps his audience to better understand how the current global environment is changing. The book’s title is somewhat misleading. One might deduct from the title that this book will be provide doom and gloom scenarios for the world’s current largest economy. This is not the case. Readers quickly learn that Zakaria has a generally optimistic view of globalization and its effects on America and other nations.
Zakaria, an Indian-American journalist, quickly introduces his readers to his view that America is not in decline. Rather, he argues that other countries are rising to catch up with America. He calls this the “rise of the rest” (p. 2). This book discusses globalization from the vantage point of politics, economics, and culture (p. 1). The author seeks to convince the reader that it is good for the world for other countries to expand economically. He believes the United States needs to be willing to adapt to the surrounding changes that are occurring as the result of globalization. He argues that the United States needs to create coalitions and share power to help both America’s economy and the world’s economy progress.
The Post-American World appeals to a variety of audiences. Zakaria’s writing style is easy to follow. Possible audiences include students, politicians, and economists. Those interested in politics may find this book provides helpful insights on what America needs to do to move forward in an increasingly globalized world. This book may not completely satisfy some academics who would prefer a more in-depth analysis of this complex issue. As a student, I found this book to provide fascinating insights into how globalization relates to politics, history and the future.
Strengths
In my view, this book’s biggest strength is its cautiously optimistic tone. I appreciate the author’s perspective that although there are challenges to overcome, globalization is positive for all countries. As long as the United States finds ways to adapt to this changing world, the future is bright for America and the world. I tend to agree with the idea that the future is bright for all of humanity. However, I realize that this attitude is good only when balanced with a willingness to solve and overcome the many great challenges that we face.
Zakaria notes that focusing on gloom too much does not prepare us to face our largest problems. He argues that many of our largest challenges are a result of our successes (p.27). He also notes that America’s relative economic weight may fall in the coming decades. However, his optimism shines through when he says “The decline need not be large-scale…as long as the United States can adapt to new challenges as well as it adapted to those it confronted over the last century (p. 41).” Perhaps this is wishful thinking, but it is refreshing to hear somebody with an optimistic viewpoint compared to the doom and gloom that is so prevalent in media and politics.
I also found Zakaria’s discussion of the history of globalization to be a good overview. His conversation of recent economic history revolves around the rise of the west, the rise of the U.S. after World War II, and now the “rise of the rest” (p.2). This historical context gives the reader the opportunity to put today’s global environment into perspective. It helps the reader understand how we got to where we are today.
Zakaria also effectively uses the limited amount of space he has in the book to proportionately discuss some of the key nations in globalization. He focuses especially on China and India. These two countries deserve significant discussion as they continue to play a major role in the world’s economy. However, he also discusses other parts of the world such as Africa (ie. p. 116).
I thought he was effective in reaching his audience regarding China’s role in the world. In speaking about China, the author effectively drives home the point that China is unique in many different ways. This can make it different to compare it to other world powers. This is important for the reader to understand. The world has never before seen a country like today’s China. It takes an open mind to understand the politics, culture, and economics of China. He notes that China’s main focus is on its growth strategy (p. 105).
Weaknesses
Although I consider this book’s optimistic tone to be its biggest strength, I also can see how some may see it as as a weakness. Some may believe that it is hard to be optimistic when so many challenges exist. Zakaria does talk extensively about many challenges that need to be overcome. However, some may wonder how he can have such a positive tone when many Americans see decline. For example, one may ask how globalization can be positive for the U.S. when unemployed, rural Americans are losing jobs to Chinese or Indian workers abroad. With the U.S. unemployment rate currently so high, and incomes stagnant, some may argue the future is not as bright as he suggests.
In addition, some may argue that the optimistic tone is unrealistic. The book was published in 2008, just as the recession was beginning to wreak havoc across America and the world. Some people may see his positive attitude as naïve. However, to his credit, Zakaria warns of problems within the U.S. political and economic system. He discusses some of the economic problems in the United States such as flat median incomes, high deficits, and low savings rates (p. 199).
Another issue some may have with this book is that the topic is too broad to be covered in less than 300 pages. Globalization involves many complex political and economic topics that require much discussion. Some might say that the book needs more depth in explaining certain concepts.
There are also times the author raises points that may cause the reader to stop and question. For example, he says that biological terror may “lack the dramatic results terrorists crave” (p. 16). In discussing America’s $13 trillion economy, he also notes that “modern civilization may be stronger than we suspect” (p. 17). The author may find that some readers disagree with his seemingly nonchalant attitude towards possible acts of terror or other issues.
Interpretations
I would recommend Zakaria’s book to those looking to better understand the effects of globalization. While some of his points may be debated, he writes in a way that makes the reader think. I found it interesting to note that Zakaria makes the same argument that James Fallows makes in the book Postcards From Tomorrow Square. Both Zakaria and Fallows believe that educating the world in America and keeping those people here will help the U.S. economy (p. 198).
It was interesting to note that a large percentage of America’s graduate science and engineering students come from foreign countries. One of the areas that really struck me in this book was the immigration policy discussion. Zakaria argues that in order to keep its edge in technology, America needs to make policies that allow immigrants to stay. Otherwise, he argues, immigrants will take their innovation skills home with them (p. 198). Of course, the topic of immigration is a broad one that includes many different types of immigrants. Zakaria and Fallows speak mainly about immigrants who come here to study and do research. Immigration policies are a heated political topic in the United States. People have strong opinions on both sides of the argument. Before reading Fallows and Zakaria, I had never thought of this interesting perspective.
Another theme that I thought was important in this book was that Americans need to become more open minded. As I have read various articles in preparation for my upcoming China trip, I have found this theme to be consistent with many of the readings. This book was no exception.
Zakaria notes that Americans are often naive to the world outside their country’s borders. He notes that “Americans rarely benchmark to global standards because they are sure that their way must be the best and most advanced (p. 46). He also notes that Washington needs to adjust and embrace a world with a “diversity of views and viewpoints (p. 214). I think these points deserve fair consideration. However, I also recognize that it is important to realize that Americans are not the only ones who may think like this. Human nature dictates that people in many countries are unaware of what the global picture looks like. I believe that this will get better as the world becomes smaller and more people are educated, but we still have a long ways to go.
Another issue the author says will affect America’s policies concerning a global future is politics. He notes that in order for the U.S. to progress, politicians from both sides of the aisle will need to compromise (p. 213). It is important for American politicians to make decisions that will help America benefit from globalization and competition from other countries. Politicians should not just look to the next election, but have a long-term outlook. Zakaria believes this long-term outlook is “highly unlikely” (p. 213). I agree that government officials need to focus more on compromising and focusing on the long run. Unfortunately, this is not the type of culture Washington D.C. has right now. Hopefully this will change in the future.
Zakaria also notes that America should evolve from its traditional superpower role. He believes that America should move from a top-down hierarchy into more of a role involving “consultation, cooperation, and even compromise” (p. 233). I agree with this, as long as other countries have the same type of attitude. It certainly takes two sides to be able to cooperate on complex problems.
Summary
My overall impressions of the book are positive. Although some may find the book to be lacking in depth, I believe the author is effective in communicating his message. The author certainly has his opinions, some of which are debatable. However, he engages his readers with his efficient and to-the-point writing style.
I especially found his thoughts on China to be insightful. As Napoleon said concerning China’s awakening, “when China wakes, she will shake the world” (pp. 87-88). Perhaps today we could expand the meaning of this quote to include many other countries. Having an understanding of China, India, and other developing countries is crucial for both politicians and businessmen. The world is truly becoming smaller, and other countries are rising.
As America seeks to continue its success in the modern world of globalization, it would do well to take into account some of the lessons learned in books such as this. I would recommend for decision makers to not only read this book, but to also read other books on the subject. The more America’s policy makers understand this complex world in which we live, the more likely they are to make better decisions. These decisions will help America find continued success and better adapt to an increasingly globalized world.
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