Travel Summary

Asia By Way of California

Introduction

I have traveled throughout Southern California in lieu of making the organized trek to South East Asia the last couple of weeks and was still able to meet with business leaders from multiple business backgrounds and industries. I have visited cultural sites influenced by South Asian and Southeast Asian societies. I have seen artwork, tasted food and talked to people of different religious faiths and ultimately have been exposed to a different way of life and a new kind of thinking even though this region of the world is historically among the oldest active civilizations known. From China to Singapore to Thailand I have experienced a thriving environment hungry for growth and understanding.

In examining these cultures I have come across I have been able to look to the Globe Study for direction and a starting point for a broader exploration. Geert Hofstede worked to create a theory that analyzed different dimensions of cultures and applied a rating system that he explained was a baseline for grouping cultures together into categories of behaviors. These dimensions could be described as a general tool for predicting how a culture will react under specific conditions. While listening to lectures and meeting with business owners I kept these cultural dimensions in the back of my mind as a guideline for focusing my ideas and paying attention to similarities and differences to his theory and reality. I was happy to be able to experience these cultures from a business perspective and to be critical of them using the Globe Study as a tool to view these experiences with.

Recommendations

California is a diverse arena for cultures as well as businesses. In particular the state has a long history of Asian culture beginning with Chinese people coming here to build the transcontinental railroad, followed by Japanese Americans being sent to a prison camp in the middle of the desert during World War II to the Korea Town neighborhood burning to the ground during the Los Angeles Riots in the early nineteen nineties. Businesses like sushi restaurants have emerged as a favorite food among Californians naming the California Roll as tribute, and the bay area is fast becoming known as a start-up hub for software engineers working with Southeast Asian partners. The impact of Asian influences is very prevalent here.

Prior to making arrangements for my visits to cultural sites and businesses I did my own research using the convenience of the internet primarily, into what to expect so that I may go in with an open mind and at least a mild understanding of who I might be meeting. I would recommend that any traveler planning a trip to places like Chinatown or Manzanar War Relocation Center or before a business person meeting with a company doing business with Asian counterparts ought to do a brief study of where they are going and who they are doing business with first.

According to Hofstede, Asian culture is based in history, pride and reservation and in general is very conservative so I would also recommend that before entering into business with Asian partners or traveling to an Asian country that one ought to engage themselves with a sense of respect and thoughtfulness. Essentially one should take care to approach the culture slowly and on the terms of the culture they are working with and not necessarily their own.

Analysis

Travelling in California and searching for businesses and locations associated with Asian countries is not a particularly difficult task. There are plenty of places to go and plenty of businesses to interact with. The Globe Study is a very general way to look at the world and embark on that journey. I used the Globe Study simply as a tool on the front end of my visits and meetings as a preface to how to begin my investigations.

This tool can be taken very literally and if done so, one can see some components that fall parallel with what this study said, so initially I agree with the results as published. On a few occasions I would say there are discrepancies and I believe this was derived from the fact that the study is written around Asian cultures themselves versus simply looking at a different culture living within another culture. The time frame as to when this study was published is also quite old and should be redone using current data.

As a culture moves into a different country, an assimilation factor must be expected as parts of the original culture dissipates. This process can happen over a long period of time or it can happen very quickly depending on the specific categorized trait being observed. For instance, according to Mueller, Spiess, Hattrup, and Lin-Hi (2012), the United States and Asian countries are identified as being at nearly the same level of affective commitment to their jobs when comparing against corporate social responsibility when looking at Power Distance however the gap on the Globe Study shows Asian countries much closer together from where they ‘should be’. Americans are shown with a much larger gap between where they are and where they ‘should be’.

Perceptions as noted in the Globe Study, said Hofstede and Bond (1988), are a trait that cultures will mix as they come into contact with one another. The organizations that I encountered essentially had to adapt to the culture they were doing business with whether it was working to penetrate a new market or if it was dealing with existing regulated markets the American understanding was to become part of that culture in order to work there.

Hofstede and Bond (1988) noted that historical reference to religious teachings of Confucianism as being a catalyst for Asian cultures to score high on the Power Distance table making the culture more likely to have respect for authority however what I saw taking place in the region overall is that collaboration is growing between nations from Singapore to Malaysia to China and Thailand. Essentially a cohesive system is beginning to veer away from societal norms of centuries passed. In order to keep the pace of development these countries will have to work together more and more and cultural identifiers will begin to blend and overlap.

The level of Institutional Collectivism demonstrated by Asian countries operating overseas shows a small spread between the ‘as-is’ and where they actually ‘should be’ but only under specific circumstances. Several of the businesses I visited come from an American way of thinking. I recognized that perceptions appeared to split and became more advanced in understanding and more savvy in how expectations between each culture were compared. For example commercial contract terms were easier to work with and more accommodating at a non-state enterprise level business transaction however when compared to interacting directly with the Chinese Federal Government, more emphasis was placed on regulation and protocols making for a potentially difficult and inflexible business environment. According to Javidan, Dorfman, De Luque and House (2006), major differences exist based on the emphasis of leadership within the culture. Furthering the notion, Hofstede and Bond (1988) explained that leadership in the collectivist nature of the Chinese culture would work to try to bring fellowship into its society but it appeared from my investigations that non-state entities continue to seek making their own rules when doing business with other nations. The Globe Study simply does not reach into this level of granularity or specifics so again I emphasize that it should really only be used as an introductory tool for understanding a culture and actual personal participation and experience are needed in order to fully know a culture.

Globe Study

Among the speakers, businesses and cultural sites that I visited on my travels around Southern California, China was the largest sample set experienced as compared to the Southeast Asian countries this course was designed around so I will be referencing China more than the latter in the following analysis.

Power Distance                      

China is represented on the Globe Study category of Power Distance as being above the baseline for ranking high on the ‘as-is’ scale and drops down just below the medium point over a rather expansive gap between the two points for where they ‘should be’. The Power Distance divide shows that Chinese culture believes they are close to their managers or people in power when in actuality they are separated quite dramatically.

In my observations working from an American perspective the Chinese culture does indeed regard their government as being part of the family and very close like a protector or father figure. The TED Talk where Martin Jacques spoke pointed this out rather poignantly. The Chinese regard the state as being all knowing and they actually take this to a spiritual level the way other cultures associate with a religious affiliation. The Chinese society that I witnessed was simply at a glance when visiting China Town in Los Angeles but one thing I did notice were the words printed on the memorial signage for Dr. Sun Yet-Sen that recognized him as being the Father of the Republic of China and regarded him as “one of the greatest figures in China’s long history”, and further that he defined the main principles the country follows to this day. The function of the state has indeed reached this cultural description as identified by the Globe Study.

In-Group Collectivism

In-Group Collectivism is defined by how a culture assigns importance to obligation of ones role in society. South East Asian nations are shown on the Globe Study table as being on the high side meaning that they tend to believe that they are concerned with individual needs but in actuality they regard the group as being the most important facet to their lives.

In listening to the interviews by Cherish Lowe of Astro Awani’s Gadget Nation, business leaders operating in Singapore expressed that they do not simply jump right onto a new idea without properly evaluating it first. This culture clearly exhibits a tendency to move slowly being concerned with the overall outcome of the idea and how it will impact the group before moving forward. This sense of In-Group Collectivism highlights the fact that Singaporeans are looking out for other Singaporeans while being contrasted against the high pace of their recent economic growth and expansion.

Gender Egalitarianism

China is shown on the Globe Study table for Gender Egalitarianism as being right between the low and medium position for the ‘as-is’ point and only moves slightly closer to the medium position on the ‘should be’ point. The spread between these two points is fairly close to how I observed the culture during my investigation.

When visiting China Town I did not see very many women out spending any time in leisure rather I saw men gambling and sitting around smoking and enjoying themselves while every shop was being occupied by women selling food and souvenirs to tourists like my me. In watching the TED Talk speaker Eric X. Li, he explained how the population was being controlled by state legislated abortion to all second children born to a family. Essentially the human right for women to bare children remains problematic in this region of the world and indicates that Gender Egalitarianism is fairly accurate as shown on the Globe Study table.

Uncertainty Avoidance           

Within the Uncertainty Avoidance category China is highlighted as being very tightly packed together with a minimal gap on the high side of the table just under the high point for both ‘as-is’ and ‘should be’. The data used for the Globe Study pertaining to minimizing risk and formal societal rules as shown on the table is clearly no longer valid because the information learned in the TED Talk speaker sessions indicated the opposite of what the table said in that there is very little difference between acceptable levels of risk Chinese people have a tendency to take on and is actually very low.

The TED Talk by Eric X. Li explained a stark contrast in this thinking pointing out that in the last ten years Chinese culture has dramatically shifted into a high risk era where different age groups throughout China were surveyed and found that there are levels never before seen among all ages that the future appeared to be very positive with a high outlook on personal success as well as the collective success of the country. The State being the highest authority in the land and the governing body known as the Central Committee has shown evidence of shifting away from formal structures driven by individuals and further has transformed into an organization that seeks input from individuals with a goal of higher collective functionality.

Future Orientation

China is listed on the Globe Study table as being situated right in the middle among cultures for ‘as-is’ points and slightly higher on the scale for where they ‘should be’ with regard to their future orientation. What this means is that the culture thinks they are slow to react to changes coming in the future and where they ‘should be’ is a bit more forward thinking.

Again the data provided in the Globe Study is simply outdated based on the news analyses done at the very beginning of this course. In nearly all four current news analyses there were discussions and actions taken by almost all of the nations reviewed that their economies were growing and the outlook for the future was good. The Chinese GDP has surpassed the United States and is not likely to deviate and surveys conducted in China in the last year indicate that the Chinese people as a whole are proud and positive about what the future holds for them.

Performance Orientation

The performance orientation category is very similar in the findings of the previous category in that China scores a little higher on the scale for where they ‘should be’ compared to where the ‘as-is’ point lands. In fact the points are nearly parallel to where the United States sits on the table.

The reality of what I observed in my investigation is that China ‘should be’ sitting much higher on the table in that they are beginning to value specific things like connectedness between the group. China is a massive country by population and their system for understanding each other and building satisfaction into the way their government performs is quite refreshing after many years of thinking their way of life was more restricted. The regulations that Abbott Medical Optics faces in order to sell their products there is an indicator that higher quality and regulatory controls is now being implemented in China contrasting the long stigmatization that low quality products are made in China so now the opposite is found to be emerging.

Assertiveness

Finally the last parameter I will evaluate is the assertiveness category. China sits just below the middle area of the table for the ‘as-is’ point and surpasses all other nations by almost half a point on the high side of the table for where they ‘should be’. What this means is that Chinese culture does not see themselves as being highly assertive however the scale matches up to them needing to be the most assertive of all.

China has certainly come a long way from a developing nation stand point. They have an old culture and history to ground themselves and they have made great strides to perfect their form of government and economy. They are innovative and forward thinking and demand great respect by what they have accomplished in the last two decades. One of the observations that stood out to me was when I met with Mega Power Systems and Sarah Siddiqui explained to me that the customer service aspect of dealing with their Chinese supplier partners was the easiest thing they had to face. When there is a bad lot of material that is shipped and when they perform their own quality checks and find the lot to be of insufficient quality the lot is replaced with no major questions asked. This tells me that China is hungry to be taken seriously and wants to grow a reputation for quality and service and confidence around the world.

Conclusion

I have made my way from businesses to museums to local neighborhoods and have been able to experience Asia from a distance. The Globe Study was a small aspect of how I approached the assignments in this course. I used other tools to help me with these tasks, such as YouTube videos and current event news sites which I felt were far more powerful than the Globe Study due to that fact that these tools could be seen as being current to the point of being in real time, therefore up to date and accurate.

Doing business in the United States posed many challenges when working with Chinese companies and their government in particular. The economy in the Asian region of the world is booming at an impressive rate however the culture seems to be driven to monitor and maintain the health throughout the process. Southeast Asian nations look like they have been waiting to enter the world market with great due diligence and the rest of the world is giving them the respect they have earned.

I look forward to actually being able to do business with the nations that I surveyed in one way or another. I already interact with companies that work with Chinese counterparts and opportunities continue to arise. The Globe Study could use a second generation review as there is a lot more data available currently that could easily be sourced and added to a new report. With the pace at which the world is moving the study will likely only be valid for a short time period thereafter however. I would ultimately recommend traveling in order experience these cultures first hand in order to gain the most they have to offer.

References

Mueller, Karsten; Spiess, Sven-Oliver; Hattrup, Kate; Lin-Hi, Nick. The Effects of Corporate Social Responsibility on Employees’ Affective Commitment: A Cross-Cultural Investigation. Journal of Applied Psychology. 2012, Vol. 97 Issue 6, p1186-1200. 15p

Javidan, Masour; Dorfman, Peter W.; De Luque, Mary Sully; House, Robert J. Leadership Styles in Multicultural Groups: Americans and East Asians Working Together. Academy of Management Perspectives. 2006, Vol. 20 Issue 1, p67-90. 24p

Hofstede, Geert; Bond, Michael Harris. The Confucius Connection: From Cultural Roots to Economic Growth. Organizational Dynamics. 1988, Vol. 16 Issue 4, p5-21. 17p. 

Cultural Tour 4

Wat Thai Buddhist Temple Los Angeles

San Fernando Valley, California

Wat Thai Buddhist Temple Los Angeles.

Prayer Alter.

I reviewed several different Buddhist Temples located in Southern California and I chose to visit the Wat Thai Buddhist Temple over all of the others because it was my impression that it focused on the culture of Thailand specifically however while visiting this temple I walked around the property and was able to see several other smaller temples that were dedicated to Chinese Buddhist traditions as well. This was very insightful as this religion based on peace was open to inclusion of other versions of belief, all within one working temple.

The temple itself is beautiful. Our tour guide had us note the architecture of the main temple and the upward pointing gold embossed roof corners as a way to be closer to heaven. He further explained that the huge giants outside the main temple were traditionally placed at the entrance to protect the temple and the monks that dwell within. The uniquely detailed designs and colors of the buildings and statues stood out as a testament to how deeply the monks and other Buddhists take their beliefs.

Our guide added that all homes and businesses in Thailand install a small version of the temple or god figure in order to watch over them. Additionally, they place offerings of food and incense throughout the week at these alters. He explained that superstition and belief in luck is very prevalent in the religion and so sometimes corruption can come from this. He explained that sometimes businesses will ask for a picture photograph of people seeking new employment and they must send this to the business owner before they are allowed to interview. Essentially they are looking to have the most beautiful people working for them because this is seen as bringing good luck and success their business.

In traveling to the temple I began to understand how important it is to consume a culture before entering into business with someone as the culture can reveal deep insights into how the business may or may not work. I would recommend this to anyone seeking to do business abroad as well as locally here in the United States. Simply thinking with Western ideas and concepts cannot be expected to be the only pathway to success for working in Asia any longer.

Cultural Tour 3

China Town

Los Angeles, California

North Gateway to Chinatown in Los Angeles, CA.

Statue of Dr. Sun Yat Sen, founder of Republic of China.

During my trip to Los Angeles to visit Asian cultural sites, I stopped into the area known as Chinatown. I learned that this area is actually the second iteration as the original site was torn down to build what is now known as Union Station, the cities metropolitan transportation system hub for rail and bus lines connecting passengers throughout the city. Chinatown is a small neighborhood that includes shops, restaurants and businesses catering to the Chinese population in Los Angeles.

I first walked into the town center at the heart of the area and the architecture stood out immediately as being influenced by traditional Chinese design queues and motifs. The buildings are distinctly Chinese as well as the embellishment of lighting fixtures, staircases, artwork and signage throughout the center.

We stopped at the wishing fountain to throw a few coins into the bowls for good luck and say a prayer. Superstition is very pronounced in this culture as could be identified by this water-feature and many other prayers and messages seen adorning the entry way to most of the businesses in the plaza.

A statue of Dr. Sun Yat Sen who founded the Republic of China sits at the east entrance to the plaza and was surrounded by men playing checkers and other games of chance. Gambling is very prevalent in Chinese culture as noted above. In talking with some of the people playing games they mentioned how they wished they were in Las Vegas. From a business standpoint, Casino owners have actively worked to tailor to the Chinese guest experience while visiting their casinos as they know how critical it is to take care of these most important customers.

Chinatown was an interesting location and I will likely be heading their again to partake on the cuisine which I did not have a chance to experience this time around. I also look forward to learning more about how this neighborhood will grow in the coming years as China becomes more powerful and influential in the world as this may become a landmark site for learning how to exchange ideas and plans for working together in the future.

Cultural Tour 2

Little Tokyo

Los Angeles, California

Japanese American Heritage Museum

Main Street Mall breeze way

Japanese Culture has a taken root in the city of Los Angeles, California in the National Historic Landmark District, known as Little Tokyo, being only one of three such official towns in the United States. My trip to Little Tokyo was highlighted by a walk through the main mall which included shops, a bakery, restaurants and a grocery store serving patrons seeking authentic Japanese food, clothes and culturally specific memorabilia. The district is relatively small and quiet as I would have expected for an early weekend morning with things livening up in the mid afternoon.

The Japanese American Heritage Museum rests on the corner between two plazas and was in the middle of hosting an exhibition about Hello Kitty, a cartoon character depicting a white cat wearing a sailor suit and a bow in her hair. This popular culture icon was made famous in the 1970’s before her journey to the United States and can be seen alongside many other quirky and eccentric figures in Japanese culture. One thing to note is that the museum is a cross between the old world and the modern and can be highlighted by the two buildings stark contrast in architectural features from the surrounding neighborhood.

Before leaving I indulged in some Japanese comfort cuisine in the form of steamed dough buns with flavored meat, a staple of the Japanese diet and a favorite among travelers to the area as was indicated by the line that wrapped outside the bakery. While chatting with several people in line I learned that it is normal in Japan to maintain a social relationship with coworkers both during work hours and is highly encouraged for after hours as well. The typical work day begins with work and may end with drinks and sporting events into the late hours of the night with managers and coworkers alike. Comradery is clearly an important factor in doing business with Japan and in Little Tokyo.

Cultural Tour 1

Bowers Museum

China’s Lost Civilization: The Mystery of Sanxingdui

Bronze Masks of Human-Animal Composite Creatures

The Bowers Museum is located in Santa Ana, California. This museum has several focuses from early California culture to Mexican art and the history of the California Missions and also has a collection of Polynesian and Asian artwork and cultural artifacts on display.

I traveled to this museum to visit a special exhibition called China’s Lost Civilization: The Mystery of Sanxingdui. This particular exhibit will only be available for a limited time since it is regarded as a Chinese National Treasure and will have to leave in a few months and travel to a new museum to share highlights of a rare and significant look into the bronze making capabilities of an early previously unknown civilization living in the central plains region of China. The civilization only survived for about 350 years and then vanished with no written historical explanation as to why or where they went. Unusual sculptural human and animal hybrid icons, masks, weapons, jades and a huge cache of elephant tusks were also unearthed which was unusual because elephants did not live in China then and they do not live there now. The pieces shown in this collection were mysterious and beautiful and left me with a curiosity of wanting to know more about these people.

What this short lived cultural period could point to from a business stand point is that China has the ability to be very advanced in many ways culturally, through artwork, and technological abilities and yet still remain off the record and secretive. As a business person it would be very important to know that the Chinese are an ancient civilization and take care to reflect on the history as a guiding tool for how to live now by looking to their past. 

Business Tour 3

Mega Power Systems

Sarah Siddiqui: President

Mega Power Systems test Switches installed on a Control Panel.

The Test Switch market is dominated by a German Manufacturer named ABB that bought the patent from Westinghouse, an American electrical equipment manufacture, over one decade ago. A small company located in Chino California came up with their own design that functioned the same way that the ABB test switch operated and entered the market only five years ago. Sarah Siddiqui is the young entrepreneur that owns and operates the business and is perfectly comfortable competing with a world class company like ABB.

Sarah walked me through her assembly and warehouse facility that housed boxes of switch mechanisms and case assemblies, plastic handles and case covers and hardware. Sarah employees between eight to twelve people throughout the year handling sales and marketing, assembly, quality assurance and logistics. The most important factor of her supply chain begins with the major components being the stamped and formed steel switch assemblies as they are outsourced and provided by partners located in China and are shipped to California where final production and Quality Assurance batch testing takes place.

Sarah explained that the most challenging aspect of working with her Chinese partner suppliers is when she has to analyze for root cause quality issues. The language barrier can make for a process of repeated phone calls and emails before issues are resolved. Making payments to suppliers can be relatively easy when invoicing where invoices are required to be paid up front for all orders. Finally the speed at which orders arrive can be an issue when she has a large project and new materials are needed right away so she can fulfill the order. She typically forecasts orders from 3 to 6 months beyond what she thinks she will need so there is a safety net for materials being on hand at any given time.

Overall the outsourcing of these key components allows her products to be a low price leader in this market and enables her to compete against the biggest players. She continues to grow her business and will likely continue to utilize her Chinese partnerships in the future. This business tour experience was insightful from a supply chain perspective in being able to see what challenges exist when coordinating efforts overseas and here in the United States. Customer demand for affordable products will certainly drive demand for lower and lower priced material for the power protection and control industry.

Business Tour 2

Abbott Medical Optics
Business Tour: Abbott Medical Optics

Abbot Medical Optics: CATALYS Precision Laser System

In the Santa Ana California offices of Abbott Medical Optics (AMO), I met with Program Manager, Simanta Patel who offered a background in the medical optics business as AMO operates globally and more specifically in South East Asia and China. Among the three main product divisions at AMO, Simanta focuses on developing products within the Cataract Insertion Systems and Lens replacement market. Her role as program manager is to assemble a team of marketing, engineering, quality assurance and clinical specialists to perform a market analysis and put together a plan of how to launch a new product into a new market.

Simanta explained that her job has its challenges that include staying on top of new regulatory requirements that have a tendency to emerge as the market or government becomes more aware of ways to keep track of organizations seeking to do business within their borders. For instance, as of October 1, 2014 China released new regulatory requirements that will require a complete clinical study. The cost, at nearly $200k and time frame, possibly 2 years or more, in which the clinical study will have to take place may not be cost effective afterward and therefore a business case must be analyzed and presented and may ultimately render the new product launch impossible leading to cancellation of the product.

Simanta further added that AMO has a goal to build an internal infrastructure of setting up clinical studies using partners and specialists within China and other Asian nations as they move ahead in this market. They already have full sales staff located remotely in India and Japan and plan to continue to build up their team in China. Malaysia will be the next location for building a lens manufacturing facility that will be aimed at supporting the aging demographic that will soon be needing cataract lens replacement in the coming decade.

The insight Simanta offered into how AMO analyses a market and creates a plan to launch a product was enlightening as she defined realistically potential barriers to operating abroad. With the growth that has become very apparent, it is clear that businesses like Abbott Medical Optics believe that Southeast Asia and China are relevant markets worth the hard work.

Business Tour 1

ESRI
Bryant Ireland: Product Planner

Bryant Ireland working at his desk at his Redlands CA based office.

Located in Redlands California, ESRI is a global leader in Geographic Information System (GIS) software, among other digital mapping management applications. Founded in 1969 as a land use consulting firm ESRI has enjoyed a healthy market share of nearly 40% among all other competitors. In an effort to continue this growth, ESRI has strategically begun doing business with the government of China by way of partnerships with local manufacturers and distributors of its software products in order to capture a relatively untapped portion of this expanding market.

During my visit with Bryant Ireland, a Product Planner at ESRI, it was clear that doing business in China has its challenges as well as rewards. He explained that China does not immediately allow direct sales of non-Chinese made software products to its government due to legislative policy. In order to interact with their Chinese customers they must electrically transmit first article software files by way of the internet to their contracted Chinese counterparts operating as the manufacturer of the final versions, packaging and shipping the product to a distribution channel partner also within China before it reaches the end user.

Bryant further explained that relationships are key to developing the ESRI corporate goal of capitalizing on this potentially massive market. His job as Product Planner does not simply end at sending electronic files overseas in order to make a sale, as tasks like invoicing, exercising Letters of Credit, licensing security, reverse logistics and quality assurance are equally critical in rounding out his duties and ultimately ensuring ESRI’s position in the GIS software industry.

Speaker Reflection 5

TED Talk

Eric X. Li: A tale of two political systems

The basis for an economy is driven by the type of government a country chooses to adopt. In order for the country to provide a high standard way of life is to decide whether to be one of several different types and can also be described as a linear progression starting with primitive civilization followed by slavery, feudal, socialism and capitalism. The top of the structure would be a mix of the best aspects of both socialist and capitalistic points of view thereby forming communism according to Karl Marx. China accepted this concept and have continued this way for over fifty years. In the TED Talk with Eric X. Li, the form of government and resulting economy of China is discussed in terms of telling a new story to the next generation of people in this world as one possible alternative to the democratic capitalist societies that have been prevalent in Europe and the West for over two hundred years.

Eric began his talk by explaining some of his background in how he had experienced both American and Chinese culture growing up and heard both sides of the story. He explained that Communism is typically classified as being Operationally Rigid, Politically Closed and Morally Illegitimate. He argued that communism is adaptable and can be shown in the structure of the political party in that it is designed to self-correct itself over time and has done so in several ways since Chairman Mao Zedong. Term limits have been implemented for all working political leaders forcing them to retire at age 65. He explained that there have been more than 6 major structural and cultural shifts in the last fifty years that have taken place that would essentially leave the structure unrecognizable to its predecessors today.

Secondly he described the basis for advancement being merit, satisfaction and improvement proven over the lifetime of ones career. A system of human resources was created in order to create organization for political party members starting with jobs that include responsibilities in civil service, social organizations, and state owner enterprise before reaching the top 300 leaders working within the Central Committee and ultimately the Premiership. He noted that only college graduates are allowed to enter the governmental public service field of career. He added that Presidents George W. Bush and Barack Obama would barely qualify to work as small county managers in this system based on their experience. Career paths take anywhere from 20 to 30 years to reach key leadership status among the Central Committee.

I also recall growing up listening to the criticisms of communism and from what Eric said in his talk it is a new perspective on how a country can be very successful in the implementation of this system. He further went on to discuss recent polls that show a positive outlook among the Chinese from all age groups and areas of interest to include 85% overall satisfaction with the system, 70% of Chinese people believe they are better off today than last year, 82% say that their future looks bright and 93% of youths are positive about the future. These statistics are eye opening in that here in the United States we do not see anything close to this when speaking about satisfaction with our leaders, our economy and our general sense of happiness.

I still have reservations about freedoms that are not available to the people that live in China. I realize it is easy to be enveloped in one perspective and personal bias can take a hold at an early age so I am curious to see if future generations will indeed adopt Eric’s plea for universality to make way for plurality.

References

Li, Eric X. “A Tale of two Political Systems.” Online video clip. YouTube. Youtube, 1 Jul. 2013.

Speaker Reflection 4

In Focus

Cherish Leow, Astro Awani's Gadget Nation: Singapore, Malaysia start-up industry

On the YouTube series In Focus, Cherish Leow of Astro Awani’s Gadget Nation was interviewed regarding her recent documentary she published about entrepreneurs working in South East Asia. Cherish was asked to talk about several key areas she covered in her film that included the pulse of the start–up market, what segments are growing popular and finally recommendations young business owners face when doing business in Singapore and other areas in South East Asia. The film highlighted similarities among the responses from the people that Cherish met and discussed their secrets of success in the Singapore market. Being passionate about what you are doing was consistently identified by the people Cherish talked to as being important factor in working in a start-up company. Being patient was another key trait of this group of eager business leaders and I would certainly agree that not knowing if you will be able to pay your bills from one day to the next requires a sense of mental toughness and discipline as well.

The common business pursuit among start-up businesses in Singapore is focused on the segment of technology based software and mobile applications development. Essentially an ever younger generation of entrepreneurs are leaving the United States and other developed nations to go to Singapore to capture success in this booming market. As a financial center, much of the investment capital is at the finger-tips of people creating the latest in practical digital productivity, social media and electronic entertainment tools. A factor for success here is that of being resourceful also. Some entrepreneurs explained that they simply do whatever it takes to get their projects and products off the ground. This methodology includes borrowing from the bank to make payroll and eat, invoice vendors early or take a side job consulting to other business owners is sometimes necessary.

Singapore has become known as a start-up hub and continuously attracts people with ideas along with talented “A-Teams” putting together winning products and companies. New players are constantly entering the market but it is still not close to being saturated with workers so there exists a thriving culture of similarly minded, hungry, collaborative individuals driving this machine. The main idea for this vibrant community is to make money but some would agree that the spirit of entrepreneurship is actually about making an impact in the world in a good and positive way.

In Singapore, there is a culture rooted in self-analyzation in that they have a tendency for taking things seriously and thinking critically about new ideas. Singaporeans simply do not jump into anything they don’t understand and take time to wonder about it first. Business owners consistently recommended this kind of self introspection before moving into working in start-up companies. I would appreciate working within a culture like this. In my opinion there are too many Western ideas and products that seem to be thrust onto the market without real clear understanding of the value or effectiveness it brings. Generational gaps do not exist in Singapore from the point of view of giving back to the culture they live in. Westerners don’t feel like giving back until much later in life, and perhaps when it is too late. Western business owners can learn something from looking at how Singapore and other South East Asian countries operate and exist.

References

Azlee, Zan. “Singapore, Malaysia start-up industry.” Online video clip. YouTube. Youtube, 5 Feb. 2013.

Speaker Reflection 3

TED Talks

Martin Jacques: Understanding the rise of China

A speaker named Jacques Martin spoke during a TED Talk and focused on the topic of understanding the country of China in relation to several key cultural dimensions in doing business with the Chinese. Jacques explained his intent to provide an overview of the country and its people and their desire to rebuild a dynasty of success in the world. After watching this TED Talk it became clear that China will continue to grow and will likely face challenges but will remain loyal to their heritage and emerge as a threat to some that appose how they intend to operate and in contrast will also be seen as a place where one can prosper.

To begin with, in learning to understand China, it is important to know that the country is considered a civilization state and not a nation state which means that China is one civilization with many systems functioning among one people. Businesses operate remotely among the different regions within China but the State is always present. The State enjoys more legitimacy and authority than any Western state period.

Potential for success and growth in business seems to be unlimited in China. Not ten years ago economists had predicted Chinese growth in GDP would parallel the United States in the next five years but recent reports have acknowledged that the Chinese GDP has already passed the United States and is headed toward doubling in the next five to six years. This is an amazingly impossible growth rate and will likely taper off as limitations begin to surface in quality and regulation forced into play from other nations.

With a population of over 1.3 Billion and growing at a rate of nearly 10% every year on average understanding China continues with the people and this staggering statistic. This is especially interesting because this is not typical for countries that are still developing rather population booms are common among the developed world such as the United States shortly after World War 2 in the nineteen fifties.

When discussing race, the civilization of China is well over one thousand years old and the majority of the population calls themselves Chinese and can point to the Han Dynasty as the center of their blood line. This identity is what holds the country together and is seen as superior to all other races dwelling within the country. In this one thousand year legacy, the state has never realistically been challenged and is actually seen as the sole source of spirituality like a parent figure or guardian designed to take care of the people. From a business perspective it is critical to gain trust among the people one is working with in China at a friendship level or even better a member of the family in order to build layers of trust and comradery.

Chinese culture and their understanding of the West as Jacques described, is that the West fails to see China using Eastern eyes rather the West continues to try to make sense of different facets of Chinese society by using Western concepts. Jacques explained that this is a mistake. If a business person enters into the Chinese market, he must make an effort to become Chinese in order to understand how to work there. An organization cannot expect to go into the market immediately feeling dominant and feel like they do not need to understand. The Chinese simply believe they are more cosmopolitan than the West and that they will continue to gain influence in the world and will be shaping how the rest of the world will be in the years to come.

As business leaders, we must look at China from a historical perspective to understand where they are going. If an organization wants to pursue China as the next place to do business than they will be forced to blend into how China exists and become Chinese to some degree. Jacques closed his speech by professing that humans must embrace and welcome the transformation that China brings to world in that democracy of multiple civilizations will be close behind and is a celebration.

References

Jacques, Martin. “Understanding the rise of China.” Online video clip. YouTube. Youtube, 25 Apr. 2013.

Speaker Reflection 2

Australian Trade Commission

Anthony Weymouth: Trade Opportunities in the Asian Century - Infrastructure in South East Asia

The Australian Trade Commission posted a video to YouTube from the Trade and Investment Queensland Conference highlighting the speaker Anthony Weymouth who is the Senior Trade Commissioner to the Philippines in April of 2013. Anthony offered three topics to his audience in his speech about what opportunities exist and how to do business in Asian countries and they are as follows; Association of South East Asian Nations (ASEAN), Asian Development Bank (ADB) and the Philippines.

Anthony began by explaining that countries that belong to ASEAN have a dramatic need for infrastructure development, especially Singapore, and Thailand in particular. He says that each of the ASEAN countries is pooling together to develop and build major construction projects covering their growing energy needs and transportation demands. Nearly $8 Trillion is needed upon initial estimates and roughly 80% of this will go toward the energy and transportation sectors. He added that $200 Billion will be set aside for Indonesia to build toll roads, seaports and railways. From the perspective of a business person or organization trying to gain a foothold in the region, it is exciting to know that 70% of the funding of these projects will be expected to come from private investment.

When talking about how to seek opportunities in this region, Anthony revealed that investors can utilize tools created by the ADB to aid in finding projects as well as banks that will assist in funding the effort. It makes sense that a region whose economies are growing as quickly as Southeast Asia, should not be difficult to secure money to build new projects, especially those that are so desperately needed. He added that the ADB is essentially made up of over 50 member banks and nations and the major stakeholders make the key decisions on how to spend the money. Australia being one of the top five members has a lot of clout and has capitalized on this position in the last several years by finding and awarding projects to Australian firms performing new construction and commercial development projects.

The ADB uses an online procurement tool to identify projects and opportunities and only requires a vendor profile be updated and stored in the system. The software tool uses key words to target projects and matches them with vendors and can notify each vendor with an email alert or text message. Anthony added that many opportunities are very specialized and require a single vendor that may be able to perform the work required and so from time to time the ADB will hire a consultant to search for specialized vendors directly and have sometimes been able to offer a direct award contract without a formalized proposal process to get the program moving faster in order to meet demand.

Anthony’s main focus was the Philippines and he had a lot to say about the election the newest President, who tasked himself with his first official duty of eradicating poverty by growing the Philippines tourism industry. He impeached a former Chief Justice on the basis of corruption and has since moved to build new roads so tourists can get around more easily. The confidence level of business in the Philippines is better than it has been in the last thirty years, growing the GDP by nearly 6.6% since his election. Overall Anthony Weymouth had a lot of insights on how one could begin working in Asia and emphasized that a desire to be successful and a hunger to work fast are needed as these economies don’t wait for anyone.

References
Weymouth, Anthony. “Trade Opportunities in the Asian Century - Infrastructure in South East Asia.” Online video clip. YouTube. Youtube, 4 Apr. 2013.

Speaker Reflection 1

Thoughtful China

Julie Yihun Zhu: What Entrepreneurs can teach you about Doing Business in China

The online video presented by Julie Yijun Zhu of Thoughtful China interviewed multiple entrepreneurs already doing business within China and were asked about what challenges they faced in entering this market and what they might recommend to other people looking to China as the next step in becoming successful in this emerging economy. The interviewees came from industries such as multimedia applications, entertainment and electronic gaming, clothing and sports and had several key topics of note that differentiated the business environment from one another as well as a common theme of passion for what one does as a trait best suiting those interested in doing business in China.

The thoughts offered were described as a “library of insights” into the possibilities the Market in China has to offer. Brian Wong started off by explaining that each new business day his company has been able to see a major increase in unique devices being identified by analytics tools in the use of his online applications on mobile devices in recent months. What this means is that Chinese people have gained more access to mobile devices than they had ever had before and so the market has simply opened up to people that have a desire to consume more online application tools to improve their way of living just like developed western countries have enjoyed for the last decade.

The gaming software developer entrepreneur Henri Holm of noted success Angry Birds, acknowledged the market in China as being very fast moving with very strong spirited people hovering around the Chinese culture. With this in mind he directed his Chinese marketing team to set targets much higher than they normally would by nearly 600% and they have since been able to capture major market share by doing this based on the hungry demand in the market. It is important to understand the tipping point for how quickly the market reacts as Chinese people now have access to goods and services they never had access to five to ten years ago.

Alison Ming of Mary Ching Shoes, Doug Pearce an art auction organizer and restaurateur as well as Michael Luevano of Shang Hai Rolex Masters tennis event planning would all agree with Brian and Henri that knowing and understanding the culture of China and dealing with historical elements as part of how to cater to the market are all critical points for being able to succeed in this business arena. They also agree that having conviction and being passionate about what one does in the most important factor of all as it was a unanimous response when asked by Julie Yijun Zhu. All five entrepreneurs also spoke about staying focused on their ventures and encouraged newcomers to not get distracted when setting realistic timetables for how ones plans role out into this market.

A point that several of the entrepreneurs also expressed was that they utilized other markets outside of China such as Japan initially as they built up the infrastructure needed to gain traction and support their next move into China. Getting ones feet wet so to speak in a smaller slower paced market is good insight into any start-up searching out how to initialize a business venture within China.

References

Madden, Normandy. “What Entrepreneurs can teach you about Doing Business in China. “ Online video clip.

YouTube. Youtube, 12 Jun. 2013.

News Analysis 4

Easing Impact

The Impact of the quantitative easing financial policy change initiated by the United States (U.S.) Central Bank in 2008 in order to stimulate the failing U.S. economy due to their standard financial policies no longer being effective was finally lifted last week. The news of this policy change quickly prompted Chinese state media to issue a response saying the latest policy change will not affect the healthy state of the economy in China according to BBC News World Asia (2014). Additionally Chinese newspapers pointed the blame at the poor policies of the West for the financial crisis and the residual negative effects that rippled through the rest of the global economy said BBC News World Asia (2014). History will likely be forgotten as the global economy recovers from the financial crisis created by the U.S. in 2008 and will be surpassed and recreated by the Chinese market over the coming decade.

Some of the pain inflicted on emerging economies like China and Singapore and others in South East Asia are evident in the devaluation of currency and inflation in markets like food and transportation according to the report by AsiaOne Business News (2014) and the press release issued by the Singapore Ministry of Trade and Industry last week. The report actually shows some signs of inflation dropping in the Singapore market which indicates a compliment to the reports by the Chinese newspaper reports explaining that China and other Asian economies are stable and will not be effected by the U.S. removal of the quantitative easing policies on their own financial system. Essentially this is good news for economies in the region as it points to positive outlooks for banks being able to provide loans and investors to be supported by successful planning and business development in these and other Association of Southwest Asian Nations countries.

What these articles does not talk about is the pace of growth rather they simply talk about the fact that currency is not affected as critically as could be anticipated. The article by AsiaOne Business News (2014) talks about a sustained inflation rate being expected for the duration of the year and into the final quarter of 2015 however the outlook does not look at other political and social issues from around the world as being part of the equation that could easily change things over the coming short term environment. Issues like the spread of infectious disease, terrorism and political elections are not discussed. These events are on-going and can have major impact on the markets and perceived expectations in the market.

Finally, the AsiaOne Business News articles does talk about the fact that as the South East Asia market grows, issues concerning wages of workers will increase (AsiaOne Business News 2014). This would indicate that the quality of life is increasing in these emerging markets and will continue to become a point of concern as visibility of the social environment is exposed. Many questions will begin to be asked about how these countries will address the cost of living and the role these countries will play in major social policy in the rest of the world.

References

AsiaOne Business News (2014). Singapore inflation eases further to 0.6% in September. Retrieved from http://business.asiaone.com/news/singapore-inflation-eases-further-06-september

BBC News World Asia (2014). China media: US quantitative easing impact played down. Retrieved from http://www.bbc.com/news/world-asia-china-29844518

Wikipedia (2014). Quantitative easing. Retrieved from https://en.wikipedia.org/wiki/Quantitative_easing

News Analysis 3

Singapore On Top

Competition to be the best country to do business with is heating up in South East Asia. As reported by BBC News World Asia, the World Bank has ranked Singapore among other countries from all around the world as the best country to do business in for the ninth successive year in a row (BBC News World Asia 2014). The World Bank used specific metrics within its survey that included a time table that looked at the duration from start to finish for a business to open its doors to go out of business, the construction permitting process and finally the tax environment of the country’s most business friendly city (BBC News World Asia 2014).  

The metrics appear to cover realistic values a business person or organization would find critical in looking for a location to operate however the story does not talk about whether the World Bank also identified specific industry related data in its research leading to this report. The report does point to several areas that remained conceivably unchanged from previous years, for example regions opening the doors to loose regulatory controls and the embrace of better business practices seemed to show growth in some countries where others that tightened legislative boundaries slipped backward in the rankings (BBC News World Asia 2014).

In parallel to the World Bank report, the country of Malaysia reportedly published their 2015 budget that included plans to invigorate exports and create an environment for strong foreign direct investments according to Bernama News (2014). From this report, it appeared that Malaysia has plans for building a more robust place for doing business alongside their neighbors to the south. Much of the partnerships and collaborations are coming from United Arab Emirates companies the article says Bernama News (2014). The Tun Razak Exchange recently entered into a project forecast to cost nearly $5.5 Billion in US dollars to establish the City of Kuala Lumpur as a global leader in international finance, trade and services the report explained (Bernama News 2014). Considering that Singapore has recently been identified as the top country to do business with, Malaysia will likely find it easy to glean convenient sources for information and techniques from this world class business entity.

The origination of the sources of investment points to healthcare projects, financial and food producing industries however they do not mention anything about other markets like energy and manufacturing as this would directly relate to the quality of life of average citizens. Energy costs and jobs that produce goods relate directly to developing countries and access to a higher quality of life and simply were not discussed in either article which may beg the question about the extent of poverty in these countries and how these regions may be exploiting other nations that do not have access to these amenities that are probably taken for granted in developed countries. As these regions become more viable as global leaders, social and humanitarian responsibilities will likely take precedence in decision making about future markets and growth, defense, and foreign aid. These countries will have to figure this into their calculations when planning for continued expansions in the future.

References

Bernama News (2014). Malaysia To Build Even Stronger Firms To Woo More Investments. Retrieved from http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=1080552

BBC News World Asia (2014). Singapore tops World Bank business ranking for ninth year. Retrieved from http://www.bbc.com/news/business-29813383

News Analysis 2

Market and Currency Balance

Asian markets appear to be coordinating efforts to grow together between China and South East Asia. In parallel stories, both BBC News World Asia and Asia One Singapore discuss Markets that are working toward integration and global expansion. According to BBC News World Asia, the Hong Kong stock Exchange known as HKEx, closed the day lower by 5% recording a six month low (BBC News World Asia, 2014). The issue stems from the plan for the HKEx to combine with the Shanghai stock market making for one of the regions most anticipated market developments however the plan will now be placed on hold until further notice as it was previously slated for opening later in the month as the Hong Kong Shanghai Market Connect (BBC News World Asia, 2014). It makes sense that the market dropped based on the uncertainty as this tends to be a common reaction by all markets when the future seems to be revealing unknown stability and growth.

The effort to join the two markets will open the borders for multiple brokerage firms anxious to gain access to markets that are normally closed to each other and the rest of the world (BBC News World Asia, 2014). The report further explains that this is the first major step in connecting Chinese markets to the rest of the global financial system (BBC News World Asia, 2014).

Among other trading news AsiaOne Singapore reports that China and Singapore will now begin trading currency between the two nations (AsiaOne Singapore, 2014). These countries want to trade currency with each other in order to reduce the cost of doing business with each other said the report in fact this move between the two markets has been described as a “game changer” because the Yuan was not tradable for over thirty years (AsiaOne Singapore, 2014).

With the news spreading about the markets combining within China as well as news of developing relationships with other Asian Markets through currency trading that was essentially non-existent several decades earlier it is clear that doing business in Asia should have a positive outlook contrary to today’s reports. It would make sense that this period is simply an example of growing pains attributed to the pace at which the markets are growing and the opportunities that are emerging that were never there before.

A deeper look at the reports adds that political pressure to make changes to home governments may cause set-backs in the pace of these coming changes. In Hong Kong, student protesters have built a month long encampment demanding democratic elections of their leaders (BBC News Word Asia, 2014). With these protests the markets have reacted by slowing down. Additionally initiatives to collaborate on environmental programs, exchange programs for government officials as well as education expansion sound like leveling efforts between the governments to counteract negative global perception associated with the civil unrest among students in Hong Kong (AsiaOne Singapore, 2014).

Advisers are likely monitoring media outlets not even mentioned in these reports to direct leaders in making decision about how to proceed with actions between the two countries and markets. From a business perspective perception can make or break the market on any given day.

References

BBC News World Asia (2014). Hong Kong-Shanghai Stock Connect delay hits bourse shares. Retrieved from http://www.bbc.com/news/business-29782593

AsiaOne Singapore (2014). S'pore, China launch direct trading of currencies. Retrieved from
http://news.asiaone.com/news/singapore/spore-china-launch-direct-trading-currencies

News Analysis 1

Asian Economy

The state of the economy in Asia has been on an incline in recent months with the announcement of China surpassing the Gross Domestic Product (GDP) of the United States. According to the Huffington Post the low cost of living in China and other Asian countries compared to the United States creates wealth among people who only a decade ago were simply living with a lower quality of life (Huffington Post, 2014). The Chinese GDP just barely outpaced the United States from $17.6 trillion as compared to $17.4 trillion.

Asian entrepreneurs and business people have enjoyed new success and have been faced with dealing with corruption and unethical practices in their growing economies. The research shows evidence of this according to BBC News World Asia, former Vietnamese Ocean Bank chairmen, Ha Van Tham was just arrested with accusations pf lending fraud (BBC News World Asia, 2014). Mr. Tham who is estimated to be worth several billion dollars in personal assets in real estate and hotel properties has been relieved of his title and duties as Chairmen by the Vietnamese Central Bank. Corruption will likely continue to surface as the economy creates opportunities for new people living and operating businesses in Asia. The news story does discuss in detail how Tham was exposed nor does it lend any ideas to how he did what he was accused of as this is probably an attempt to sensor the public from knowing what actually happened in this particular case.

From a different perspective, outside of corruption and negative sentiment the growth of populations expanding beliefs and religious faiths is reaching from Malaysia to Japan in the economy with the news about food products now being more readily available across borders. Bernama News just issued a report on the import of halal products from Malaysia to Japan, opening the doors for access by Muslim athletes as they head to the Olympics in 2020 (Bernama News, 2014). The agricultural industry in Japan will likely grow and create new opportunities as Aeon Group, a massive retail organization operating eighteen hundred locations will bring halal products into its stores (Bernama News, 2014).

What the reports does not talk about is the demographic details of how many Muslims already live within Japan and how many will likely continue to purchase halal products outside of the athletes that companies are marketing to. The Olympics being hosted by Japan is nearly six years away and should not be expected to drive the market for this kind of product on a long term basis. The news article does not explain other possible outlets for agricultural food processors to use the certifications that will be required in order to produce food on their equipment. The market will probably open up to other types of religious based food requirements like Kosher with this as a gateway into the market but still does not show the demographic into who will be active in the market so additional data should be sought before making final decisions about the pulse of the market based on this article.

References

BBC News World Asia (2014). Vietnam business tycoon Ha Van Tham arrested for 'fraud'. Retrieved from
http://www.bbc.com/news/world-asia-29769252

Bernama News (2014). Japan To Import Halal Products From Malaysia. Retrieved from http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=1079608

Huffington Post (2014). China's Economy Just Overtook The U.S. In One Key Measure.

Retrieved from http://www.huffingtonpost.com/2014/10/08/china-gdp-tops-us_n_5951374.html