The China GameThe Palio Group ~ Michael Whelan, Managing Partner

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nvitation to Owners, Presidents, and CEOs of US mid-sized manufacturing companies with operations in China: Be among the first to play...I

China is rewriting the competitive rules of business and economics

✤ Remember watching The Wizard of Oz and how Dorothy felt when she realized she wasn’t in Kansas any more?

➡ China will take all that you know to be true about succeeding in business, and call it into question...

➡ And most likely turn it on its head

✤ You may have experienced this already.

Source: Shawn Mahoney, managing director of EP China consulting group as quoted in the global post, “Why Big American Businesses Fail in China.” September, 2013

Why do American business fail in China?

✤ The overriding reason is an inability to grasp just how different - and cutthroat - the Chinese market can be.

Quote:

“It’s a lack of understanding of the legal and cultural environment that leads to most failures...

The only difference between a success and failure in my experience is that people who are successful are more willing to talk and learn about how things work on the ground.”

What’s Your China IQ?

✤ You are invited to test your intuitive grasp of common knowledge gaps, faulty projections and mistaken beliefs about China –

✤ Hidden land mines that risk derailing talented, confident, seasoned executives like you who enter the China market.

➡ Are your Goals in line with the opportunity?

➡ What is the nature of the Playing Field?

➡ Who are the Players and how do they move?

➡ Will your Strategy deliver?

Who am I to challenge you in this way?

My name is Michael Whelan.

✤ Born in the US, I’ve lived in Greater China for 32 years and have helped my clients win their competitive battles for nearly two decades.

✤ CEOs who seek my help typically want to accelerate rate-of-growth and profitability in China. I’ve helped them multiply both.

✤ Now that you’ve played the New China Game, read these insights and research about succeeding in China and compare them to your own views and experience.

The Goal: Questions 1 -5

1. My goal in China is to 'CRUSH IT' - to become a dominant player in my sector.

2.  I am personally interested in finding the optimal growth solution for my company in China.

3.  My investment interest in China is long-term.

4.  Our methods have worked in other emerging markets and will translate well in China.

5.  Our operation in China is: (Choose one)

Are your goals in line with the opportunity?

The Board: Questions 6 - 11

What is the nature of the playing field?

6. China is an emerging economy – most industries are in their fledgling state.

7. China is a low cost place to manufacture and do business.

8. China is not monolithic – it comprises many smaller, dissimilar markets.

9. When it comes to doing business, China and the US have a lot in common.

10. Americans and Chinese have similar values.

11. China is a civilized place – everyone is subject to the laws of the nation.

The Players: Questions 12 - 18

Who are the major players and how do they move?

12. My main competition will come from the Chinese government.

13. If labor attempted to form a Union, the Chinese government would strike them down.

14. With its more than 1.3 billion citizens, senior talent is plentiful in China.

15. Top English-speaking Chinese senior executives prefer to work for big name Western companies over other options.

Who are the major players and how do they move?Continued...

16. When it comes to business, C-level execs are similar in outlook and objectives.

17. Top Chinese executives think and act like Westerners: direct in speech, performance driven and transaction-oriented.

18. Smart US executives accustomed to international business will adapt quickly to the Chinese business environment.

Your Strategy: Questions 19 - 30

Will your strategy deliver?

19. The golden solution is to find a JV partner in a local Chinese company.

20. My top notch HR department will take excellent care of my hiring needs in China.

21. The top 5 search firms in China are in the best position to take excellent care of my hiring needs.

22. The best firms to meet my hiring needs are the local search firms.

23. Two hiring mistakes are possible.

24. With the surplus of talent in China, a company is more likely to make the first mistake.

Will your strategy deliver?

Continued...

25. It's a buyer's market – top performers welcome calls from established companies.

26. It’s vitally important to present a strong value proposition to your candidate.

27. Compelling reasons why a candidate would choose you over other opportunities include the following: (Check all that apply)

28. Performance rewards can get out of hand – it's wise to control costs by capping them.

29. When the need arises will be the best time to find the right people to lead operations in China.

Final Question

30. What one single act would have the greatest impact on your life and business in China? Choose one:

Having the right systems in place

Hiring your top China executive

Knowing the market opportunities

Having reward systems in place for stellar performers

Learning conversational Mandarin Chinese

Clearly defining the results you are seeking

Being able to measure success with the right metrics

Come On! Take the Challenge and Play the New China Game...

✤ Are your goals in line with the opportunity?

✤ Are you prepared to venture onto the playing field?

✤ Who are your key players and what are their strengths?

✤ Will your strategy deliver?

Your visual guide to succeeding in China

✤ Visit NewChinaGame.com

✤ Test your familiarity with the China market and get your China IQ Score -

➡ in 5 minutes flat!

✤ Then check your email inbox for our informative, researched, illustrated Answers and the rationale for your China IQ Score.

Source: Michael Whelan, Managing Partner, The Palio Group, Beijing, China ~ MW@thepaliogroupsa.com