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Under the supervision of Ms. Deepshikha Singh Lecturer Department of Human resource Submitted By: Neha Thukral (A-26) Shreyas Sinha (A-38) Harpreet Kaur (A-46) Juhi sharma (A-47)
Shruti Sehgal (A-50) Bhumika Sisodia (A-52) Pradeepthi Kilani (A-54)
CASELET – 2 What is the most effective way to set targets for my staff in 2011? What is the most effective way to set targets for my staff for 2011? Should I do this the first week back in January and should I offer incentives? Targets and incentives are a great way to focus attention on the right things and encourage the right behavior. Even if you have a June year end, it is a great time to recap the past year or half year and recalibrate for the start of a new period. Having your people come back and set refreshed objectives is a great way to start a new calendar year. The most effective way to set targets is to have well defined objectives in the first place. Start-up must satisfy the test of the multi-letter acronym SAVVY: Specific: the objective must be specific and measurable. Every objective can be measured by quantity, quality time or cost. Achievable: be reasonable and make the task reachable. Value adding: not just the daily grind - something that is makes or breaks for this year. Very clear: no ambiguity please. Yours: the objective is understood and owned by the employee. Once you have SAVVY objectives you are in a position to talk incentives. Incentives should be used where there is an opportunity to exceed expectations.
In this way they do not kick in until some agreed level of performance is achieved. Then they are self-funding, as you have locked in a level of performance and then can fund the incentive out of over-budget performance. Everyone is a winner. At no stage use the term bonus, as it sets an expectation, whereas if you use “incentive” it is always performance-linked and can be discretionary. Please do not set incentives at such a level as they are seen as unreachable – it acts as a deterrent rather than an incentive. You can reset the bar in future years where performance levels are consistently met. So the answer to your question is clear:
• • • •
Set SAVVY objectives. Design an incentive for your business and be reasonable. Start in January and set it up for your business (full year or half year). Be inclusive as you may be surprised what your team will be prepared to go for.
In short, start the year with a refocused and clear vision and engage your team to achieve success. This is a super opportunity and if you grasp it with both hands you can really set yourself up for success. If in doubt call an advisor who can help.
The energy will permeate the organization and create a new momentum for success. Cultural Models. Cross-cultural perspective . Organizational Culture creates energy and momentum. and finds significance and learning in even its most ordinary aspects.ANSWERS Q1. It requires members especially leaders. Organizational culture is possibly the most critical factor determining an organization's capacity. effectiveness. to acknowledge the impact of their behavior on the organization's culture. CrossCultural Perspectives AnsImportance of culture to the organization It focuses attention on the human side of organizational life. and longevity. It clarifies the importance of creating appropriate systems of shared meaning to help people work together toward desired outcomes. Importance of culture to the organization. It also contributes significantly to the organization's brand image and brand promise. It encourages the view that the perceived relationship between an organization and its environment is also affected by the organization's basic assumptions.
Critics have pointed to methodological flaws in cross-cultural psychological research and claim that serious shortcomings in the theoretical and methodological basis used impede rather than help this scientific search for universality. it seeks to extend. including a challenge to the limited cultural perspective that may result if one only studies cultural variables within one's own society. The latter is the branch of psychology that holds that human behavior is significantly influenced by cultural differences meaning that psychological phenomena can only be compared with each other across cultures to a very limited extent. develop and transform psychology. Central themes. Cultural Model . the empirical study of members of various cultural groups who have had different experiences that lead to predictable and significant differences in behavior. language and meaning. taking into account the ways in which behaviors are shaped and influenced by social and cultural forces. anxiety.Cross-cultural perspective is the scientific study of human behavior and mental process. Cross-Cultural psychology includes a search for possible universals in behavior and mental processes. Cross-cultural psychology is differentiated from Cultural Psychology. including both their variability and invariance. Through expanding research methodologies to recognize cultural variance in behavior. conceptions of the self. In contrast. are all re-examined in cross-cultural psychology in an attempt to examine the universality of these concepts. They also outline various aims and goals of cross-cultural psychology. and issues such as psychopathology. Various definitions of the field include: "the scientific study of human behavior and its transmission. and depression. under diverse cultural conditions. Culture may also be defined as "the shared way of life of a group of people. cognition. such as affect.
A high power distance culture prefers hierarchical bureaucracies. a low uncertainty culture emphasizes a higher level of standardisation and greater job security. He defined organizational culture is an idea system that is largely shared between organizational members. the Dutch academic. Hofstede classified a county's cultural attitudes as five dimensions: • POWER DISTANCE The extent to which power is distributed equally within a society and the degree that society accepts this distribution. . strong leaders and a high regard for authority.In the mid 1970's. A low power distance culture tends to favour personal responsibility and autonomy. • UNCERTAINTY AVOIDANCE The degree to which individuals require set boundaries and clear structures: a high uncertainty culture allows individuals to cope better with risk and innovation. based his five dimensions of culture His methodology was both unique in size as well in structure. Hofstede was able to statistically distinguish cultural differences between countries. Geert Hofstede.
a feminine culture emphasises human relations and quality of life. free will is highly valued.• INDIVIDUALISM versus COLLECTIVISM The degree to which individuals base their actions on self-interest versus the interests of the group. In an individual culture. In my experience. Creating work cultures with competitive advantage Ans. because it deals with attitudes and behaviors which all seem a bit vague but are critical to the company. driving it and consistently reinforcing it. Q2. • MASCULINITY versus FEMININITY A measure of a society's goal orientation: a masculine culture emphasises status derived from wages and position. In a collective culture. more a set of habits developed over time.Culture is often seen as the soft side of management. as Joanna Higgins observes. it’s actually the hardest. Long-term traditions and commitments hamper institutional change. • TIME ORIENTATION The degree to which a society does or does not value long-term commitments and respect for tradition. A business often has less of an established culture. personal needs are less important than the group's needs. My definition of culture is “the way we do things around here”. . But. This dimension influences the role government is expected to play in markets. Five questions to get you thinking and hopefully help you in creating a work culture with competitive advantage: • What’s our current culture? Every company has one. creating a winning culture that can often be a real differentiator in the market place means managing it.
Core values can help provide guidelines for acceptable and unacceptable behavior — experience shows that this also helps manage performance more effectively. Do you look for evidence of matches to your core values in prospective employees. • What do we value? Reward staff for living your company culture. it’s what you do that counts. objective view of your current culture is a useful point to start from. demotivate colleagues and upset team members? If you measure individuals on results alone. but is basically a real pain because they wind others up. promotion criteria. support and reward those that promote and act in line with the core values. though. It’s not what you say. Great leaders shape spell out a picture of the culture they’re striving for. Winning businesses celebrate their champions. Ever had someone in your team who achieves all their goals and hits all their targets. The best seem to go further. A focus on culture should be at the core of your reward systems. for example? . regardless of their behavior. appraisal processes.Getting a clear. by establishing preferred behaviors that support these values. too. sometimes just a set of guiding principles or values. You could ask your customers. • What do we want it to be? Establish some core values. then you’re asking for trouble. Which aspects are you happy or unhappy with? Get a picture of what you need to keep. feedback systems. acknowledge. one of Enron’s published values was integrity. Again. Apparently. recruitment and selection processes. Successful companies reward the behavior they want as well as results. They encourage. • Do our systems and processes help or hinder? Bolt culture into the way you measure and maintain the business. getting ownership of these behaviors is a key. Why not get your people to describe it — pluses and minuses. what to eliminate and what to work on.
the smoothiemaker. how can you get started in addressing the issue of culture in your organization? Why not start with putting these questions on the agenda of your next management or team meeting to get the ball rolling. People with more power usually set the goals. if not counterproductive because of the following Reasons: • Control. who invent and control the system. Lots of business leaders say the right things. but really are only giving it lip service and doing it incredibly badly” says Richard Reed of Innocent. but don’t do them..Pay-for-performance plans so reliably unsuccessful. No wonder just such a proposal. what they are seen to do. it’s the leaders who are great role models. to those who actually do the work. in Norristown. • What are our leaders like as role models? This is a critical issue.“The problem is many companies say they are doing it. and crucially. where the point is to best one's colleagues. In its most destructive form. Q3. was unanimously opposed by teachers and . They make the core values visible and talk about them at every opportunity." • Strained relationships. that the whole enterprise "conveniently moves accountability away from politicians and administrators. and generally set about trying to change the behavior of those down below. If merit pay feels manipulative and patronizing. Moreover. Your group is required to illustrate as to why do recommendations fail to be implemented? Ans. establish the criteria. Innocent has an array of incentives and reward mechanisms that support and promote their core values. Pa. merit pay is set up as a competition. So. They recognize that their people judge them not by what they say. as Maurice Holt has pointed out. but by what they do. that's probably because it is. the fact that these programs usually operate at the level of school personnel means. In organizations that drive this stuff.
you can count on seeing less useful collaboration among schools. • Reasons and motives. They keep telling us in surveys that the magical moment when a student suddenly understands is more important to them than another few bucks. and made contingent on the performance of. Some argue that monetary rewards are less harmful if they're offered to. not about excellence. true to its name. looks only at behaviors. Why would one faculty share ideas with another when the goal is to make sure that students in other schools don't do as well as yours? Merit pay based on rankings is about victory. If I end up getting a bonus and you don't. is that people could be doing a better job but for some reason have decided to wait until it's bribed out of them. And. our interactions are likely to be adversely affected. teachers are typically not all that money-driven. But if a school misses out on a bonus. bribing groups doesn't make any more sense than bribing individuals. Dangling a reward in front of teachers or principals—"Here's what you'll get if things somehow improve"— does nothing to address the complex. an entire school. what often ensues is an ugly search for individuals on whom to pin the blame. especially if an incentive program is based on their relative standing. systemic factors that are actually responsible for educational deficiencies. particularly if you think of yourself as a pretty darned good teacher. Pay-for-performance is an outgrowth of behaviorism. as noted above. Even those teachers likely to receive a bonus realized that everyone loses—especially the students—when educators are set against one another in a race for artificially scarce rewards. In any case.for-performance programs don't have to be explicitly competitive in order to undermine collegial relationships. and indeed of all rewards. This is as insulting as it is inaccurate. Also. not systems —and. But pay. The premise of merit pay. they're becoming disenchanted these days less because of . Even if they wouldn't mind larger paychecks. which is focused on individual organisms. not at reasons and motives and the people who have them.ultimately abandoned.
and often at the cost of undermining their passion for teaching. I tell Fortune 500 executives (or at least those foolish enough to ask me) that the best formula for compensation is this: Pay people well. researchers have demonstrated repeatedly that the use of such extrinsic inducements often reduces intrinsic motivation. It's an illusion to think we can specify and quantify . That study didn't even take account of how resentful and demoralized people may become when they don't get the bonus they're expecting. The more that people are rewarded. pay them fairly. For all these reasons. Doing something because you enjoy it for its own sake is utterly unlike doing something to get money or recognition. Most of all. the more they tend to lose interest in whatever they had to do to get the reward. In fact. it's only in an extrinsic sense. • Measurement issues. a recent study of a merit-pay plan that covered all employees at a northeastern college found that intrinsic motivation declined as a direct result of the plan's adoption. For example. and some things can't be reduced to numbers. some things are more than the sum of their parts. and then do everything possible to help them forget about money. All pay-for-performance plans." The more the plan did what it was intended to do—raise people's extrinsic motivation by getting them to see how their performance would affect their salaries—the less pleasure they came to take in their work. Equally controlling pay-for-performance plans are based more on neoclassical economic dogma than on an understanding of how things look from a teacher's perspective. Despite what is widely assumed by economists and behaviorists. violate that last precept. particularly for some of the school's "most valued employees —those who were highly motivated intrinsically before the program was implemented. If bonuses and the like can "motivate" some educators. merit pay fails to recognize that there are different kinds of motivation. of course. The plan was abandoned after one year.salary issues than because they don't enjoy being controlled by accountability systems.
much less establish criteria for receiving a bonus that will eliminate the perception of arbitrariness. but it's not possible to reach consensus on a valid and reliable way to pin down the meaning of success. But the problems are multiplied when the criteria are dubious. as I and others have argued elsewhere. All these concerns apply even when technicians struggle to find good criteria for allocating merit pay. administrators often visit classrooms more to judge teachers than to offer them feedback for the purpose of improvement. such as raising student test scores. evaluation may eclipse other goals. merit pay based on those scores is not only unfair but damaging. Edwards Deming reminded us that "the most important things we need to manage can't be measured. Core Roles & responsibilities include: • Conducting market analyses • Making salary grade recommendations that balance internal equity and external . They keep records. What's more. These tests. Moreover. A compensation consultant is a professional whose role within a company is to implement and monitor employee compensation programs. After merit-pay plans take effect.all the components of good teaching and learning. work to improve payroll policy and liaise with administrative and human resources staff. What is the consultant’s role and what skills are required? Ans." It's possible to evaluate the quality of teaching. No less an authority than the statistician-cum-quality-guru W. Q4. you'll need to acquire a wide range of business skills through college and professional training. tend to measure what matters least.The Compensation Consultant is responsible for designing and administering in-house compensation programs. if it accelerates the exodus of teachers from troubled schools where they're most needed. To become one. manage projects. They reflect children's backgrounds more than the quality of a given teacher or school. particularly when dollars hang in the balance.
How can organizations create conditions for engaging people? Ans. Focus employees on clear. Improve employee and customer engagement 3. Reflect an employee's performance and contributions 2. Increase productivity 4. including evaluating the FLSA status of various positions • Developing and delivering presentations to management level staff • Designing. It helps organizations develop effective strategies that: 1. Reward employees who achieve results The Significance of compensation in the overall operation and success of a law firm can be summarized as follows: . for when they do.competitiveness • Developing job descriptions • Designing base pay programs • Conducting job evaluation analyses. and measurable outcomes 5. Link to the organization's strategic direction and business goals 6. they will increase productivity and achieve sustainable growth. objective. Q5. The Compensation Consultant role requires strong computer skills with advanced knowledge of Microsoft Excel and he must possess strong analytical skills and the ability to work as part of team and on multiple assignments simultaneously.Organizations must align their compensation and reward systems with performance. administering and participating in compensation surveys • Assisting the Compensation Team with the year-end merit increase process • Running various reports in our Ceridian HRIS system and conducting analyses of the data.
3) Trends in advancement to partnership and establishment of partner "classes". geographic location. 3) Is attractive to capable senior associates so that they wish to become partners in your firm. These factors include: 1) General economic conditions and government regulation. 2) Minimizes dissatisfaction with compensation and departure of valuable partners. . 4) Provides an incentive for productive partners to stay with your firm to normal retirement age. The objectives and benefits of a proper compensation system can be summarized as follows: 1) Promotes harmony among the partners because they feel they are fairly compensated relative to each other. 2) Specific economic trends affecting the legal profession. 2) Other important factors include: being in the "right" field of law for the time. and having the flexibility to adjust firm size for general economic conditions. Partner compensation is affected by more than just a firm's specific compensation system for its partners.1) Compensation is one of the most significant factors and one over which you as members of your firm have a great amount of control.
low to mid-range quality If your product falls in this category there are lots of great options available to you for sourcing.to mid-quality products.4) Retirement obligations of the firm. . Finding a good supplier who can provide exactly the sort of product you're looking for is a critical step for an online retail business. The best way to go about finding a good supplier depends on the type of product you're looking for. Do you have any tips for me? I'm looking to source a product from China. There are plenty of places to go online to source standard. CASELET – 3 I'm looking to source a product from China. low. 1. Do you have any tips of suggestions on the best way to go about doing this? This is a good question. Standard product.
The Canton Fair is the world's largest trade fair and is held twice a year in Guangzhou. For example. as they may not be available on websites like alibaba.the world's largest sourcing website – is a good place to start. 2.com or at large. China.com . there are large leather and non-leather wholesale handbag markets in Guangzhou where you can source pre-designed handbags or find suppliers to make handbags you've designed. low. even from a supplier on alibaba.Visiting www. For products in this category you'll need to spend more time on the ground working with your suppliers. build at least a basic relationship and to check and confirm the quality of the goods you're buying. There are also a number of trade fairs in Asia where you'll be able to find these sorts of products. of course the downside is that there are probably already a lot of people selling the same or similar products in the market.com. but I'd recommend at least one or two trips to meet them.alibaba. high quality leather shoes or specific pieces of sporting equipment there are a number of trade fairs throughout Asia each year where you should be able to find good suppliers. You'll need to find a non-product related way to differentiate yourself in the market. For example. where suppliers are permanently based. you probably won't need to spend a lot of time in Asia with your suppliers. if you're looking to source high quality furniture.to high-quality Products in this category can be a little harder to find. A good place to start in this category is to do some searches online for product specific trade fairs. There may also be wholesale markets in China for these products. While sourcing products in this category is relatively easy. mid. . so marketing might be a little harder for you. but that's a topic for another blog post. general fairs like the Canton Fair. It's absolutely massive with suppliers of just about every standard. If you're sourcing these sorts of products.to midrange quality product showing their wares at the fair. Niche product.
and inspecting the final product before taking delivery. At Shoes of Prey we needed to find suppliers who could custom make high quality leather shoes. In the end we were lucky that we were sourcing during the Global Financial Crisis. The only way you'll pick this up is if you're on the ground with them. One of the things I love about sourcing products in China is how hard-working and efficient most people and businesses are in the country. 99% of shoe suppliers require minimum orders in the 100s of each style and color shoe. We needed to order them one at a time. who understand our requirements. It's very easy for a supplier to make a good quality sample. systems and processes and work day-to-day with our suppliers to ensure we're making shoes correctly and at a very high quality for our customers. Shoe manufacturers were receiving fewer orders from their existing customers so some of them were more willing to work with a new and specialized customer. If you're . Highly specific product. reviewed products they'd made previously. selected materials. on the ground in China. get samples made and really spend time with your suppliers to ensure the quality is right. how it worked and who might be interested in working with us. then take shortcuts when making a full run of your products. 3. between our three co-founders we have spent a combined eight months out of the two years we've been working on the business. In addition to that we have our own office and two local employees. Vanessa and Qun. We were recently developing a new shoe box so we went and met with a supplier.If you're going to be developing your own product you'll need to work on your design with potential suppliers. In terms of spending time on the ground in China. We spent a lot of time on the ground in Asia meeting with different suppliers and attending trade fairs to understand the industry. put a design together. high quality This category is the hardest to source and will require a lot of time on the ground working with suppliers. Attempting to do something similar in Australia would have taken weeks. negotiated the price and organized for a sample to be ready in five days’ time. Within two hours of meeting them we'd discussed our ideas.
22michaels.com. feel free to leave them in the comments. Michael Fox managed Google’s online sales and operations agency team for Australia and New Zealand before moving into entrepreneurship. He has co-founded travel guide website Swift City. He blogs in detail about the process of running Shoes of Prey at his blog www. spoof online dating site Darwin Dating and Shoes of Prey. Changing Environment in General and Economic Environment in particular Ans- .looking to source products in China hopefully this information is useful. If you have any experience or thoughts to share. ANSWERS Q1. which allows women to design their own shoes.
Creating a competitive environment will facilitate fast learning . • • 4. • Using ICT to shorten the learning process and and make catching-up easier in areas where clear trajectory of technical progress can be followed. • Restructuring of China’s national systems of innovation . pay more attention to technology upgrading and R&D.Challenges to China’s Economic Growth and International Competitiveness • Deepening economic reform to facilitate the restructuring the micro-foundation for competitiveness. Pressures are mounting for Chinese firms to improve productivity..
The importance of Tier 2 cities . food and agricultural processing. US companies may be able to export more goods and services to China's second-tier markets. In 2008 and 2009.Emerging Opportunities in China China's Emerging Tier 2 Cities: Opportunities for US Companies As living standards and the business environment improve. • • China's diverse urban and rural markets present challenges for foreign companies. and clean technology. To understand domestic market trends and opportunities. US exporters may find more opportunities to sell to China's second-tier markets. Economic Growth and Change Areas. Emerging Opportunities in Various Sectors including Social Sector. Management Practice and Cultural Issues Ans. they receive more than half of total US exports to China.Q2. China's expanding economy is rich with business opportunities for US firms. such as high-tech manufacturing. the United States exported more than $69 billion worth of goods annually to China. many of which are small and medium-sized enterprises. As China's wages rise nationwide and interior regions receive greater investment and government support. Quick Glance • Though China's Tier 2 cities may be less populated than their Tier 1 counterparts. US exporters that research and understand China's diverse business environment may find more markets for their products. Each second-tier city is strong in certain industries. companies should study the strengths of various regions—and do their homework. however.
Chongqing.) Consumer spending is an important factor in Tier 2 cities' growth. Global Trade Atlas statistics show that the cities with the highest year-on-year growth in US imports as of June 2010 were Hefei. the largest US city. Liaoning. Jiangsu. Xiamen. and Xi'an. this article focuses on 15 key Tier 2 cities. Sichuan. Guangdong. these cities have enormous market potential. Shenzhen and Zhuhai. Shandong. commercial.4 million and GDP of nearly $1. and Hangzhou (63 percent)—far outpacing the 19 percent and 21 percent growth rates in Beijing and Guangzhou. many of which are provincial capitals: Chengdu. including Qingdao. Nanjing and Suzhou. Fujian. Qingdao. according to the US Commercial Service. Wal-Mart Stores. Inc. Tianjin. The PRC government is considering a $738 billion 10-year energy plan that could provide opportunities for US companies that export components or key technologies to manufacturers. Tianjin. respectively. had a population of about 8. these markets receive more than 59 percent of total US imports. Suzhou's population was roughly 6. Guangdong. Ningbo (90 percent). operates 12 stores in six Chinese cities. Hubei. (In comparison. Wuhan. opened its first supercenter in Shenzhen in 1996 and expanded to 189 stores in 101 cities throughout China by August 2010.Though analysts often categorize China's Tier 2 cities in different ways because the PRC government does not officially define tiers. As living standards and the business environment improve. . Hangzhou and Ningbo.5 trillion in 2009. Purchasing power is increasing. New York.3 million and its gross domestic product (GDP) was $774 billion in 2009. Home Depot Inc. as evidenced by major retailers' expansion into these cities. Yunnan. Kunming. Chengdu (75 percent). Shaanxi. and regulatory landscapes of China's developing Tier 2 cities. Zhejiang. Dalian. and Xi'an. Though the total population of the 15 cities accounts for only 8 percent of China's overall population. Recent social and economic reforms have transformed and reshaped the industrial. For example. Anhui (164 percent).
new-energy vehicles. accounting for more than 7 percent of the country's smartphone shipments. deferred interest and lower tax rates. The 12th FYP will continue to provide subsidies. new materials.China's 12th Five-Year Plan (FYP. and clean-tech sectors. wind. market-leading innovative technologies. was China's fifth-largest smartphone vendor. From 1995 to 2007. home appliances. and other non-fossil fuel energy sources. For example. the industry grew from $19 billion to $167 billion. is currently being drafted and is expected to continue funneling major investments into Tier 2 cities. Based on data available for different sectors. new energy. High-tech manufacturing China's high-tech manufacturing industry has seen unprecedented growth in the past decade. ranking third worldwide after the United States ($374 billion) and the European Union ($306 billion). solar. and next-generation information technology. as of second quarter 2010. China is the world's largest manufacturer of consumer electronics—including electric office appliances. According to PRC state media reports. and other support policies to advance the development of high-tech enterprises. which lays out national policies in major social and economic areas for the next five years. 2011-15). The industry's rapid growth has created opportunities for US companies that export precision machinery used in high-tech manufacturing. and smartphones may find opportunities in this sector. this article primarily focuses on second-tier market opportunities in China's high-tech. high-end equipment manufacturing. These sectors could provide opportunities for US companies that export components or key technologies to manufacturers. Apple Inc. electronic communication equipment. The plan will likely focus on seven strategic emerging industries: biotechnology. Suppliers and manufacturers of high-tech portable consumer electronics. . the government is considering a $738 billion 10-year energy plan that will develop clean energy by investing in nuclear. food processing. and plasma and digital TVs—and accounts for more than 35 percent of the global electronic industry's total revenue.
Chengdu has companies in 22 divisions in the industry and competitive advantages in beverages. especially those that export high-tech equipment used in food and agricultural processing. shipbuilding. Other key cities with strengths in the consumer electronics industry are Lu'an. and textiles and apparel. Other cities that have strengths in food and agricultural processing include Nanchang. consumer electronics. Clean tech In 2009. and tobacco.5 billion by the end of 2010. The local government has placed special emphasis on the development of consumer electronics. Fujian. and Zhangzhou. building materials. steel. overshadowing the $18 billion total investment made in the same industries in the United . and Shenzhen. In 2009. The city's total food processing industry output is expected to reach $11. and managerial institutions and has roughly 800.000 scientifically and technically skilled personnel. meat. Jiangxi. feedstock. This growth has created opportunities for US exporters. Qingdao is home to more than 30 research. Henan. Shandong's GDP grew 12 percent to nearly $495 billion. petrochemicals. cargo handling. Food and agricultural processing Despite the global economic downturn. investment in China's clean-tech industries reached about $34 billion. The industry grew nearly 30 percent annually from 2003 to 2008. chemical fertilizers. Anhui. Tianjin. food processing equipment. The food processing industry is one of the six pillar industries of Chengdu. Luoyang. including alcohol. as more consumers replaced traditional fresh foods purchased at morning and wet markets with packaged foods found in Western-style hypermarkets. auto manufacturing. China's food processing industry output reached a record high of $662 billion in 2009. ranking third among China's provinces. dairy products.Qingdao ranks high as a potential export market because of its numerous industries. higher-education.
Other key cities with strengths in the wastewater treatment industry include Tianjin. Wuhan. Hubei. The PRC government plans to build new facilities and upgrade existing ones. China's current wastewater treatment infrastructure is still inadequate. Wuxi. Wastewater treatment China generated 57. Solid-waste treatment . resulting in a large demand for technology and components.States. Competition for these projects is fierce. The city's industrial zones. may present additional export opportunities for US suppliers. The city is particularly rich in fresh-water resources and the local government strongly supports the development of wastewater and urban sewage treatment facilities. which will each have wastewater treatment facilities. and ranges from foreign companies that provide advanced technology and management to domestic players that typically offer more competitive prices and in some cases comparable technology. Jiangsu. Analysts expect that the country's total wastewater output will reach 79 billion tons by 2015 because of rapid urbanization and industrialization. is a key emerging market for wastewater treatment facilities. Some PRC sources have predicted that the 12th FYP's budget for environmental protection. Further investment and development plans are underway as China attempts to derive at least 15 percent of all energy from renewable sources by 2020. Companies that provide innovative solutions and advanced equipment and technologies may find opportunities in China's clean-tech sector. in 2008.2 billion tons of wastewater. and Xiamen. which includes wastewater and solid-waste treatment. The PRC Ministry of Environmental Protection stated that the total output of enterprises in the environmental protection industry is expected to exceed ¥1 trillion ($149 billion) by the end of 2010. will reach roughly $454 billion—more than double the amount allocated in the current FYP. composed of 58 percent municipal wastewater and 42 percent industrial wastewater. however.
More than 90 percent of China's landfills do not meet international standards because of capacity constraints and unsanitary conditions. production is expected to top 250 million tons in 2010. waste-to-energy technologies. exports of other products to key Tier 2 cities are also growing rapidly. Alternative MSW treatment methods such as incineration will likely become more widely accepted by local governments and industry players in China. and sampling instruments—and thus open greater export opportunities for US firms. Other industry opportunities In addition to the main sectors discussed above. To reduce the amount of MSW. Heilongjiang. Hangzhou. The local government has invested roughly $88 million to develop a comprehensive infrastructure system for MSW. Xi'an's imports of electrical machinery rose 118 percent .China is the world's largest producer of municipal solid waste (MSW). Ningbo has made significant improvements to its waste treatment facilities in the past few years. the PRC government is making investments to improve its solidwaste treatment capabilities. Other cities with strengths in the solid waste treatment industry include Chongqing. and Harbin. For example. the primary methods of disposing of solid waste in Ningbo in the past 100 years included uncontrolled burning. treatment equipment. and dumping into waters—all of which have polluted the environment and affected citizens' daily lives. terrestrial dumping. the country produced more than 223 million tons of MSW. These methods require more advanced technologies and instruments than Chinese companies currently have the capability to produce—including sanitary landfill and incineration equipment. To minimize the negative effects of MSW. With a forecasted annual growth rate of 8-10 percent. In 2008.
Considerations for US companies Tier 2 cities may present opportunities for US companies that take the time to research and understand China's domestic market trends and complex business environment. and competition from established domestic enterprises. provide business counseling and matchmaking services for US exporters in 14 markets. US companies must therefore understand the China market and assess all opportunities and challenges when determining their entry strategy. are under the US Department of Commerce International Trade Administration The Global Political Situation.trade. such as China's selective enforcement of World Trade Organization rules. Wuhan's chemical imports increased 100 percent. .gov to find the nearest office. In some cases.in 2009. The Global Competitive Environment and the internal scene.gov or www.export. and Xiamen recorded 544 percent growth in imports of pharmaceuticals. local content requirements. They must also choose an appropriate location with a market environment most suitable to their industry and objectives. These websites. Companies must recognize that the China market is highly fragmented with significant differences between cities and regions. government restrictions on foreign ownership. visit www. the US Commercial Service offices in China. contact a trade specialist at a US Export Assistance Center in any state. markets are either premature (especially in the case of expensive or advanced technologies) or highly saturated with intense competition. together with the China Council for the Promotion of International Trade. Companies may also face other challenges when entering the China market. vulnerable intellectual property rights. To learn more about the services of the US Commercial Service in China and opportunities in emerging Tier 2 markets. while Tianjin's imports of railway equipment jumped 634 percent during the same period.gov/china/en. or visit www. and the US Comercial Service.buyusa. To help US companies better understand the China market.
1% in the first half of 2009 (year-onyear basis). establishing easy money policies to boost banking lending. Trade and foreign investment flows have been major factors in China’s booming economy. and widening income disparities. These include pervasive government corruption. Over half of China’s trade is conducted by foreigninvested firms in China. and millions of workers reportedly lost their jobs.Economy of China Since the initiation of economic reforms and trade liberalization 30 years ago. Such policies have helped stabilize China’s economy. making it the destination for FDI among developing economies. FDI flows. The Chinese government has indicated that it intends to create a “harmonious . severe pollution. The global economic crisis began to impact China’s economy in late 2008. the lack of rule of law. was the world’s second largest merchandise exporter and third largest importer. Despite the relatively positive outlook for its economy. The Chinese government has sought to boost the economy by implementing a $586 billion economic stimulus package (largely aimed at infrastructure projects). and large-scale purchases of foreign currency (especially dollars) has helped make China the world’s largest holder of foreign exchange reserves at $2. After growing by 13% in 2007. China’s real GDP slowed to 9. real GDP is expected to grow by over 8% in 2009—far higher than the expected growth of any other major economy. and providing assistance to various industries. if not addressed. In 2008 China. China’s trade and inflows of FDI diminished sharply. China has been one of the world’s fastest-growing economies and has emerged as a major economic and trade power. foreign direct investment (FDI) in China totaled $92 billion. could undermine its future economic growth and stability.0% in 2008 and to 7. In 2008. China faces a number of difficult challenges that. over-dependence on exports and fixed investment for growth. China’s rapid economic growth has sharply improved Chinese living standards and helped raise hundreds of millions of people out of extreme poverty. The combination of large trade surpluses.3 trillion. an inefficient banking system.
Consulting Proposals. exporters. industries. economic interests. the surge in U. China’s large holdings of U. Fact-Finding Leading to Solution Development and Implementation .S.S.S.S. policymakers have argued that China maintains a number of economic policies that violate its commitments in the World Trade Organization (WTO) and/or are harmful to U. especially in Asia. China’s economy and economic policies are of major concern to many U.S. securities have helped keep U. Concerns have also been raised over China’s rising demand for energy and raw materials in terms of the impact that demand may have on world prices. On the one hand. This has raised concerns that China might try to promote a greater Asian trading area that would exclude the United States.S. Many U. Q3.S. Identification and Definition of Problem.society” over the coming years that would promote more balanced economic growth and address a number of economic and social ills. and investors have generally benefitted from China’s rapid economic and trade growth. such as its currency policy. and thus possibly diminish U. consumers. economic power and influence in the region. U. imports of Chinese products has put competitive pressures on various U.S. policymakers. and the growing level of pollution and greenhouse gases that has resulted from China’s growing energy needs. On the other hand.S. Some contend that China has a large stake in ensuring the continuance of a liberalized global trading system. Chinese efforts to purchase energy and raw materials assets around the world. China has been pursuing free trade agreements around the world. interest rates relatively low.
you can explain here) Q4.Ans. Creating work cultures with competitive advantage .Fact-Finding Leading to Solution Development ( Growth.
Collectivist in nature it is the polar opposite of America’s and Staples individualistic culture. similar to Hong Kong. stateowned businesses this would be on the high end due to their hierarchical nature. b. given China’s focus on the group v. Power distance – With a large portion of the population employed in agriculture this score isn’t relevant for all. are embracing a more western culture. but for the bureaucratic. Until the rest of China is able to balance the capitalistic requirements for global competition with the historic collective roots it does not represent a profitable expansion route for Staples. relationships. its historic national and business cultures are still very evident. fueled by the global reaching Internet. the individual.Ans. . Although China has spent the last two decades striving to achieve globalization. Degree of individualism – This score would historically be on the low end (collectivism). Although Sullivan (2002) doesn’t provide scores for four of the five Hofstede’s dimensions to culture for China.China’s culture is primarily based on the 2500 year old teachings of Confucius and revolves around the group. a strict power structure and risk aversion. China’s market is largely dominated by state-owned businesses with hierarchical structures and staffed by employees expecting guaranteed employment and benefits. China’s hope for successfully making the transition is the young. it can be estimated that they would fall in the following ranges: a. who.
but also to the business culture. This however is probably moving lower (toward accepting risk and change) as outside / westernized influences creep into the culture. equality and achievement. Americans tend to thrive or at least easily tolerate change while China dislikes the unpredictable. Where the US focuses on individualism. The largest gap though is in long-term orientation where the US culture lives for the present. Long-term orientation – This is the only score Sullivan provides and it is off the scale on the high end. make decisions only after careful and detailed analysis and value persistence (Sullivan. Conversely. e. 2002). the Chinese. If you compare the estimated Chinese culture scores to those of the United States it immediately becomes clear just how different the two are across the board. again stemming from the state-owned bureaucracy exemplified by a lack of risk or uncertainty. similar to South Korea. d. valuing cooperation within a hierarchical structure. making quick decisions. which tracks. Individualism United States China 91 ~25 Power Uncertainty Distance Avoidance 40 ~70 46 ~85 Assertiveness 62 ~39 Long-Term Orientation 29 118 This analysis and these scores apply to both the national culture of China and the US. businesses become privatized and China opens itself to globalization. save for the future.c. since China has one of the highest rates of savings in the world (40% GDP). Intolerance for uncertainty -. China is more collective. Degree of assertiveness – This score would probably be located on the lower end of the scale (toward “nurturing” and “cooperative living”). “China . and short term planning. wanting immediate gratification.This score would be on the higher end.
and the U. car makers and even Google. Despite the hullabaloo raised by Washington and other large economies. hoping to capitalize on this phenomenon. From electronic manufacturers. You may be producing goods and or services . It’s not easy to name any western company that is yet to set shop in China. titles and business card presentation • How to establish relationships with government officials (COMPETITIVE ADVANTAGE) China remains the best destination for any serious businessman who thinks of investing in whatever market and for many reasons. • A large domestic market – No serious businessman or woman can ignore a large domestic market like that of China. One should also have an understanding of the following aspects of Chinese business etiquette: • Gift giving • Greeting rituals • Business relationship development • When to display emotions • Time perceptions • Differences in decision making and problem solving • Guest-Host relations • Negotiation styles • How to use intermediaries • Meeting customs and conduct • Use of the names.S. all big companies have gone for a piece of china and for a good reason. represent ideological opposites in the work environment. in spite of the present move toward capitalism in China.” Creating a positive first impression is not enough. businessmen are trooping to China in droves.
Latin America and even Africa are paid per hour mainly because the cost of living is significantly lower too. but the domestic market remains significant from whichever direction you look at it. there isn’t any other better reason for an investor to relocate to China. South America and Eastern Europe but not so when it comes to china. Latin America. China has a population of more than 1. Most of these businessmen. you heard me. and Eastern Europe. some from as far as united States have set up shop in china while running away from stringent measures from their own home countries. • Cheap labor – The wages and salaries paid to the average Chinese worker remain significantly lower than the rest of the world mainly because of its communist past. It’s this domestic market that serious businessmen are looking for before venturing into the export zone. Workers are paid less than half of what those in Eastern Europe. Those in the know will agree with my assessment that energy tariffs are higher in the rest of the world and this scares investors away to this emerging investment hub – China! • Zero tolerance to corruption – China punishes corruption with a death sentence. • Cheap energy – China has some of the cheapest energy options any businessman or investor can think of. Who wants to spend all business fortunes on labor or wages? No serious businessman and hence migration to china. Its remains almost a tax holiday to be sincere while the rest of the world levies hefty taxes on foreigners making them run away in order to save and build on capital instead.3 billion and still counting. • Flexible tax laws – Compare China’s tax laws with those of Britain and the United States or even Japan and Germany and you will realize why china is the place to be for every serious businessman. With huge coal deposits that are cheaply made available to those who need some. . Yes. Corruption dissuades many businessmen from investing in Africa. If you are found corrupt. you are sentenced to death before human rights activists can raise any objection and the court system works so efficiently that the corrupt have nowhere to hide.for export. making it very attractive to investors more than the whole of Africa.
What is the consultant’s role and what skills are required? Ans. . efficient railway transport and other infrastructure that readily attract investors.Conducting interviews with clients. Investors receive a lot of subsidies. Those who saw the ease with which the Chinese held the Olympic games in Shanghai will agree with me that they have infrastructure just as good if not better than what is found in the rest of the world. . .Facilitating workshops and assisting focus groups. Q5. .Organizing business presentation and business proposals.Consolidation of metrics needed for planning and business reviews. their employees. • Government support – Businessmen can totally count on the Chinese government for support. . .• Proper infrastructure – The west has the best infrastructure yes but so has china invested a lot in a good road network. . flexible taxation measures and everything else that would guarantee them a high return on investment more than elsewhere in the world. Keep in mind that management consultants are mainly involved in providing objective expertise.Identifying and isolating pressing issues. .Data collection.Formulating and implementing solutions or recommendations. .Conducting analysis and research. and specialist skills with the aim of improving business performance and maximizing its growth. results focused team.Managing programmers and existing projects. .Managing a highly motivated. . and their management team.Assisting clients in putting plans into action. advice.
and supply-chain management. business strategy. Which do the typical techniques exist to aid implementation? Ans• • • • • • • Producing quality work under pressure. Communicate effectively with your team and your clients and: Make your life on projects easier. Deal with dynamic targets.As a consultant. Q6. financial and management controls. Set and manage expectations. . e-business and operations. Keeping project managers and clients happy and Maintaining client relationships. information technology. you are expected to operate across a wide variety of services which include marketing.