Don’t Be The Deal Killer
November 15, 2008
As you look to develop your business in China, the last thing you want is to have your deal killed over a business or cultural Faux Pas. Whether, you are expanding your own business, going to work in China for your employer, or developing suppliers, you will at some point make a trip to the Middle Kingdom and come face to face with the people and the culture. Rather than having an 11th hour cram session before the trip, we offer three basic tips that will ensure that you aren’t a deal killer. Read more… »
The Evolution Of The Expat - Part III
October 22, 2008
Two roads diverged in a wood and I-
I took the one less traveled by,
And that has made all the difference
Robert Frost
In the final installment of The Evolution of the Expat we would like to discuss repatriation, bring the Expat home or not. A critical, but frequently overlooked step of the Expat process is proper repatriation provided by the company. In many cases, Expats have grown apart from their home country and the culture at headquarters, so the challenge of repatriating is difficult, especially when one has to go it alone. It is not uncommon for companies to bring Expats back without any real position for them. The responsibility is placed on the employee to find his/her place in the organization. What is the repatriation survival process for the Expat, or Global Executive? Let’s take a closer look. Read more… »
The Evolution Of The Expat - Part II
September 23, 2008
In our first series we discussed the need for Expatriates (Expats), why they are important, and the “recipe” for maximizing ROI. In this second installment, we will discuss how the Expat needs to manage, how they need to be managed, and how they change over time.
In the 1980’s and 1990’s Expats both successful and unsuccessful were characterized by a curious mindset. They didn’t keep anything inside for long, and because nature abhors a vacuum, they constantly needed to ingest something new, replenish themselves, multiply, augment. The Expat’s mind found it difficult to stop at one event or one country. Something always propelled them forward, drove them on without rest. Such people, while useful, even agreeable, to others, were, if truth be told, frequently unhappy-lonely in fact. Problems would arise because the Expat was on his/her own. They lost touch with the best practices of their home country, both professionally and personally. This caused two major problems, first the Expat was no longer effective at driving the HQ message across and the Expat no longer fit in back home. Read more… »
The Evolution Of The Expat - Part I
September 7, 2008
I found Rome a city of bricks and left it a city of marble
Augustus Caesar
This is the first of a three part series that will discuss the transition from the Expatriate (Expat) to Global Executive. For decades, Expats were characterized in one of two ways. Either they were a loyal lifetime employee who didn’t quite have the talent to run a unit in the U.S., or there simply wasn’t any spot for them in the U.S. These loyal employees were still rewarded with a posting, including the perks of club, car and international school for the kids, in locations such as Hong Kong or Paris as their “Swan Song.” Usually, these offices were already established and the Expat played a caretaker role, performing mostly ceremonial duties. Another major reason for sending these mediocre talents was that the CEO usually wanted their best and brightest right next to them at headquarters. Fast forward to the 21st century and this has completely changed.
Run To The Revenue - Part II
July 26, 2008
In our first segment, we discussed some of the key factors associated with the economic growth of Asia. We spoke in depth about the top 25 global company trends over the past 10 years, the top 50 competitive nations, and how Foreign Direct Investment (FDI) has influenced the in/out flows of money. As companies from Asia continue to penetrate the U.S. markets, so too must North American enterprises penetrate Asia. The opportunities are vast, but the task of executing a successful strategy can be even more daunting. Strategies developed by most U.S. companies, either small or large, don’t work well in Asia for two main reasons. Read more… »
Tough Times Call For Smart Measures
June 23, 2008
The growth in China in the past 10 years has been unprecedented. China is still the most popular destination for foreign manufacturing investments on the globe. In 2007 it attracted more than $80 billion in Foreign Direct Investments (FDI). The China economy continues to “over heat.” Read more… »
Audio: II-Asia Interview On NPR
March 13, 2008
Ravi Sastry, President of International Innovations, was recently interviewed on National Public Radio in his home state of South Carolina. Listen as he discusses the company, the business environment in Asia, the emergence of China and India, and the opportunity for US companies to improve their performance by taking greater advantage of Asia.
Is China Quality An Oxymoron?
February 19, 2008
The transformation of China from rice bowl to iron bowl has been done expediently. For example, in 2000, 30% of the world’s toys came from China. Five years later, this had increased to over 75%.
China increasingly dominates manufacturing in industry after industry. Over the last decade, China exported one out of every three pairs of shoes in the world. Between 2001 and 2004, China’s auto parts exports increased from $1.3 billion to $9 billion. In 1996, China exported $20 billion worth of computers, cell phones, CD players and other electronic devices. Eight years later China exported $180 billion worth.
As the West’s craving for products from China has grown, the cost of poor quality has increased at proportional rates. In recent years, there have been a number of massive recalls of Chinese-made products, from pet foods to toys to consumer electronic goods. Read more… »
China v. India: The Battle of the Titans
December 9, 2007
As China has been the dominant low cost solution for the manufacture of consumer products, so too has India for IT and Business Process Outsourcing (BPO), especially since the burst of the technology bubble in 2001. The duality of these economies is based on the practice of many US based companies to invest in China as the manufacturing powerhouse and India as the software powerhouse.
Companies making their initial entry into Asia, or looking to expand beyond the borders of China, may find India a very compelling place for high technology investments and lower costs. On the surface, India does not necessarily look like a major economy or an attractive place for a US company to setup a manufacturing operation. India’s infrastructure is poor, its traffic is chaotic, its policies and bureaucratic processes stifle development, and it is home to rampant corruption. Read more… »
Opening A Vietnam Rep Office
November 3, 2007
The Representative Office (RO) is the most simplified structure for gaining a toehold in Vietnam. The strategy behind the RO is to make a minimum investment as you learn about the inner workings of the country, understand the costs, established a market channel, and investigate the capabilities of the people. Following are the key step required for opening an RO in Vietnam.
Establishment of the RO
To establish a representative office in Vietnam, a foreign company must apply for a license issued by the Provincial Trade Department, and complete post licensing procedures including notice of operations and obtaining a seal. Application files for establishment of the representative office must be submitted to the Provincial Trade Department. To obtain a seal, the chief representative of the representative office or its staff may be required to personally lodge the applications due to security reasons. The following documents must be submitted to the licensing authority for obtaining the License: Read more… »