Thursday, July 14, 2011

CHINA TRIP--FINAL REFLECTION

Our two-week trip to China was a culminating event following several months of hard work and preparation. This experience provided us with hands-on experience in a country that is a global economic force. As we move forward into the 21st century, it will continue to become more important for firms to understand how business works in China.

Many of the principles we learned throughout the year in our MBA courses can be applied to this trip and course. For example, one of the key takeaways concerning China and global business is the importance of understanding the culture of the firms and countries with which we conduct business. Throughout the year, we discussed this topic in several of our courses. For example, in our Organizational Behavior and Human Resource classes, we learned about how a company’s culture can have a large impact on both employees and customers. In our Negotiations course, we discussed the importance of understanding different cultural tendencies and the impacts these traits can have on cross-cultural business negotiations.

The importance of developing an open-minded attitude along with a desire to understand the behavior of companies and people was emphasized during our firm visits in China. If we are to partner with the Chinese, we need to see why they think the way they do. We need to understand why they run their companies the way they do. We need to move away from stereotypes and look at various companies and individuals on a case by case basis. Each firm we observed was different. We saw different cultures and values within each site that we visited. It was a great opportunity to practice the concepts we learned in our MBA courses.

As I reflected about Western products or services that could possibly be offered in China, I thought of some of the discussions I had with others during the trip. Some of the Chinese students I talked to spoke of their excitement for the American game of basketball. They love watching the NBA. The commissioner of the NBA has been considering for years the possibility of expanding to Europe. My question is, why not China? The students I spoke with noted that basketball is extremely popular there. They are familiar with all of the teams in the NBA and watch NBA basketball much more than Chinese basketball leagues. This is a complex topic, but I think it would be intriguing for the NBA to look at the Chinese market and capitalize on its popularity.

One Chinese product or service that could possibly be offered or imported from China into the US would be their tea. I was impressed with our visit to The Hutong. I can envision people who go wine tasting along the central coast of California to also have interest in tasting Chinese tea. Entrepreneurs could not only import Chinese teas to the United States, but could also set up tea-tasting events where guests could learn about tea as well as Chinese culture.

One “business practice” that I took away from the Chinese through this course and trip that Westerners could learn from is the importance of relationships. Long-term relationships are valued over hurried transactions. While relationships are also very important in the West, Chinese guanxi places an even greater value on relationships and getting to know business partners. This has both positive and negative consequences. I definitely can see how too much of a focus on relationships can cause more inefficiency or even unfairness and corruption. However, I like the fact that many in the Chinese culture like to get to know the other parties involved in business deals. This allows people to develop relationships with others in settings that perhaps they would not otherwise find themselves in. This could lead to friendships that go beyond just business dealings. These associations can help the Chinese build relationships based on trust and can help set up future opportunities. I was impressed with the hospitality that was shown at each of the firms we visited. They were a great example of treating their guests with respect and kindness.

One of the things that developed economies can learn from emerging economies and markets is that in a country like China, most people seem to value their jobs. In the United States, some people seem to feel entitled to have certain perks or benefits associated with their jobs. However, it was my impression from our visits that the Chinese were grateful to be employed. Many of the workers were performing repetitive or mundane tasks. From my viewpoint it appeared that Chinese employees were hard workers who did not complain much about the conditions. I did not get the sense that there was much whining about having to do various tough jobs. While I am sure this is not always the case in China, I believe that the West could learn from its Chinese counterparts.

Similarly, one constraint that emerging economies and markets have that developed economies often do not have is a shortage of managers with the necessary skills to help companies implement their strategies. During my discussion with a Chinese student at the English Corner in Beijing, the student confirmed that this is a serious problem in China. With its quickly growing economy, the demand for educated and capable business leaders is higher than the supply. Finding talented managers who are educated and experienced will be a critical component as Chinese companies move forward in an increasingly competitive global economy.

I enjoyed meeting with MBA students from both Tsinghua University in Beijing and China Europe International Business School in Shanghai. These MBA programs are trying to help fill the void as they teach managerial knowledge, skills, and abilities to their students. Another challenge China faces is providing enough energy for its people in an environmentally responsible way. I enjoyed discussing this with Calvin, a Tsinghua MBA student. He wants to work in the energy sector. He is well aware of both the challenges and the opportunities that this particular field has to offer in China.

One of the takeaways from this trip was learning whether I have the flexibility that any firm, domestic or international, will require of me in order to add value to what the firm does. On this trip I learned a lot about myself. I believe I do have the flexibility necessary to travel to a place like China on occasion. I learned many lessons from this course that can help me better work with global companies.

I realized that at this time I do not want to relocate my family in China permanently. I do not believe I currently have that kind of flexibility. However, if I worked for a company that needed me to visit China from time to time, I think I would be interested in such an opportunity. Although I do not want to live there permanently, I certainly would not mind visiting on occasion for business or recreation. I feel like this course and trip laid a foundation that could possibly open doors in the future.

On this trip I was regularly forced out of my comfort zone in different situations. One example that comes to mind was at the English Corner in Beijing. I was surrounded by a group of very intellectual students who wanted to know my opinion on a variety of complex economical issues. I felt like a politician being interviewed by inquisitive and challenging reporters. At first I was out of my comfort zone, however, as I continued to converse with these students, I had one of the most memorable learning experiences of the trip. It was fascinating to share my views as well as to hear the views of the students. Some of them had never spoken with an American before. One student noted that he thought most Americans were arrogant, but said he was surprised to find me to be very “diplomatic.” I was really impressed with their curiosity and desire to improve their country. The students I spoke with were very realistic and even possibly a little pessimistic concerning the future of their country. They also mentioned their frustrations concerning the amount of corruption among government officials in China. This hour of conversation went by too quickly. I learned a lot about myself as well as the Chinese. I learned that stepping out of our comfort zones can provide us with some of our most memorable and valuable learning experiences.

There were many cultural differences that I experienced and observed during this trip and course. One notable example of this occurred during one of our tours of a Chinese firm. In China, hierarchy and respect for one’s seniors is considered very important. We learned that often times, businesses are run from the top down. The employees rarely question their bosses or even provide their input. The managers are supposed to know the answers to the problems and the employees do as they are told.

During this particular visit, we saw this cultural trait first hand. During a question and answer period, an executive asked us as MBA students what recommendations we would have for their company based on our observations and studies. We had just completed a presentation and a thorough tour of their facility. After the executive had asked this question, one of our classmates began to politely give input as to how the company could improve. However, the executive immediately got defensive and would not let the student go beyond a couple of sentences. I thought this was a fascinating view of Chinese culture. Although the executive asked for feedback, it was clear that he really did not want to listen to what students had to say.

This particular trait has both positive and negative consequences. On the positive side, workers can be efficient in doing the things their manager tells them to do. Without the resistance, they can be more efficient. However, management may also miss out on valuable ideas from workers who are involved in the day to day operations that could prove to be helpful.

The most important thing I learned on this trip and in this course that changed me as a person is the importance of remaining open minded. As Americans, this is particularly important as we do business with other countries like China. American practices may differ in significant ways from those of other countries. We will be much more successful in conducting business if we strive to understand the cultures of different countries as well as different firms. We need to be careful about making assumptions and try to expand our own world view so that we can better know how to interact with others. This trip provided us with a great opportunity to immerse ourselves in the business culture of China. We were able to see firsthand the complexities of the culture in this rising nation. As we better understand the culture and practices, we are more prepared to respect the people and work together to achieve common goals.

What surprised me most about China was its solid infrastructure in the cities we visited. I did not expect to see so many modern roadways and buildings. From our initial drive into Shenzhen to our final drive to the Beijing airport, I was impressed with the buildings and roads. I did not expect to see upscale shopping areas and roads without potholes. The port we visited was impressive. There were many new buildings. Also, I was very impressed with some of the firms we visited and their good organization. Many of them were much cleaner and better organized than I had expected. These aspects of China stood out to me as we visited the firms and cities. It was interesting to observe how quality infrastructure has helped China’s exports and economy.

For me, China represents a land of unique opportunities and challenges. Its people are hard working and intelligent. The government can accomplish goals quickly. There is a sense of rapid change in the air. We hear about China often in the media or through casual conversation. However, Americans often misunderstand China. This trip was a great opportunity for us to lay a foundation in understanding China and its business practices. I will always remember the lessons I learned on this trip. It will take mutual understanding, respect, and open mindedness for the United States and China to work together in anchoring a strong global economy. If both countries do so in a spirit of cooperation, then everyone can benefit economically.

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