Saturday, November 15, 2014

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. 

Tuesday, November 11, 2014

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.

Saturday, November 8, 2014

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.