1. www.globalwavetoday.com Are You Ready to Manage the Dragon Project? Procurement Market Entry Export Distribution Procurement Market Entry Export Distribution 北京，上海，广州，深圳，重庆，杭州，南京 Felicia Chang Global Wave Today Global Wave Today Project Management Symposium April 28 th, 2010

2. www.globalwavetoday.com “I suggest they learn everything they can about China because it will permeate every aspect of business in their lifetimes.” “I suggest they learn everything they can about China because it will permeate every aspect of business in their lifetimes.” — Jack Welch

3. www.globalwavetoday.com From Great Wall to World Expo Project management in China is evolving Ancient Project management in China  Great Wall  Great Canal  Forbidden City Modern tools, techniques and methodologies  Critical Path Method (CPM)  Program Evaluation and Review Techniques (PERT)  Graphical Evaluation and Review Techniques (GERT) First application of modern project management  Defense  Aerospace and science  Construction Great Wall World Expo

4. www.globalwavetoday.com  There are opportunities for Project Managers who know their way around the world  International project management requires highly developed skills outside of regular project management  Project management is more of art in China  Don’t expect to follow the principles and rules of managing projects in the United States Keep the following in mind: Project Managers Need to Think Globally Adapt to the special nature of global project management 4

5. www.globalwavetoday.com Two most important attributes for international Project Managers:  Cultural sensitivity  Intellectual curiosity about other people and nations Project Managers Need to Think Globally You are operating on an international landscape

6. www.globalwavetoday.com Physical distances  Geographical  Time zones Psychological distances  Cultural  Emotional  Language China is on the Other Side of the World Distances can complicate a global venture

7. www.globalwavetoday.com Key experiences among project managers:  Delays  Cost overruns  No improvement in quality  Lack of resources to perform project tasks A simple 3-stage delivery process:  Preparation  Execution  Close-up China is on the Other Side of the World Learn from the experiences of other PMs

8. www.globalwavetoday.com  Each type of project presents different challenges and risks  What is the best way to manage a project? Procurement Market Entry What is Your Project ? Two most common projects in China Sell products from China to U.S. market Sell products from U.S. to China market

9. www.globalwavetoday.com Key steps:  Identify what must be procured  Establish a timeline for purchase  Identify potential suppliers and service providers  Obtain quotes or bids  Choose a supplier and/or service provider  Manage the relationship with the supplier and/or service provider  Close-out contract Managing a Procurement Project in China Plan well, evaluate your options and choose wisely

10. www.globalwavetoday.com  Developing processes that are rigorous yet still flexible  Building a team experienced in China projects and familiar with the culture  Managing milestone deadlines within budget and managing expectations are key challenges  Using collaborative tools and techniques Managing a Procurement Project in China Critical elements

11. www.globalwavetoday.com  Poorly managed projects are often completed over budget and with significant delays.  Managing the key stakeholders is a critical key to success in China.  Western and Chinese stakeholders have different needs and expectations  Manage your expectations and unexpected risk Managing a Procurement Project in China Manage processes and expectations intelligently 11

12. www.globalwavetoday.com  Identify your market opportunity and target customer  Identify the best sales channel to bring products/service to China market  Set up your office and logistics  Identify and manage your distributor  Create and manage your Internet marketing project  Manage your relationship with Chinese consumers and companies Creating and Managing a Market Entry Project in China Do some serious business planning

13. www.globalwavetoday.com Online Marketing Market Entry Analysis/Strategy Company Setup Marketing Traditional Marketing Distribution/Sale Target CustomersMarket OverviewCompetitionSWOT Site SelectionTravel Consulting ESTABLISH “GUAN XI” Engage Local Resource & Building Partnership Law/TaxLogistics Not plan to set up office Set up office NegotiationRecruitingTraining Market Entry Road Map 13

14. www.globalwavetoday.com  IPO  M&A  Private entrepreneurship  Outbound tourism  Outbound investment  3-6 tier city & rural area growth World Manufacturers World Consumer Market Transform ‘World Manufacturer’ is Becoming a ‘World Consumer Market’ Take advantage of the transformation

15. www.globalwavetoday.com  Education  Health & Medical  Environmental Protection  American Lifestyle Products  Luxury Market  Entertainment  Technology  Tourism Key China Sectors for U.S. Exporters to Target Focus on growth markets

16. www.globalwavetoday.com China Market is Complex and Fragmented Broad geographical territory

17. www.globalwavetoday.com * Culture shapes way people think, how they look at the world, the decisions they make and the things they do.  The importance of relationship/save face  Pragmatic  Decision making  Deadlines  Value maturity  Materialism  Dress/act formally  Dining and business Project Management is About Managing Culture Know how people think and make decisions

18. www.globalwavetoday.com Key stakeholder management is critical to success  Customers  Suppliers  Distributors  Service providers  Government officials and approvals Managing a market entry project in China is more of an art than a science Creating and Managing a Market Entry Project in China Consider key stakeholders and Chinese culture

19. www.globalwavetoday.com BUT… It takes special planning and commitment  Respect differences  Plan well  Make a long-term commitment  Form the right team  Factor in extra time build in your project’s life cycle  Actively communicate  Set realistic expectations The China Market is Lucrative and Rewards are Tremendous

20. www.globalwavetoday.com 1.Everything is possible 2.Nothing is easy 3.Western business logic does not apply 4.It is a fun project if there is no deadline 5.You must persist — things will come your way eventually 6.Patience is the essence of success 7.There are no secrets in China 8.“You Don’t Know China” means they disagree 9.“New regulation” means they found a new way to not do something 10. “Internal Regulation” means they are mad at you 11.“Basically, No Problem” Means BIG PROBLEM 12.When you are optimistic, see Rule #2 13.When you are discouraged, see Rule #1 The Golden Rules of China By Robert Ma of McDonald’s of China

21. www.globalwavetoday.com Why is Global Wave Today different?  China contacts  Market knowledge  Lead the process  Strong cultural and language knowledge  Deep global experience We bring unique insights... We transform China’s complexity and ambiguity into clarity

22. www.globalwavetoday.com For More information CONTACT : CONTACT : Felicia Chang Global Wave Today (248)918-3863 fchang@globalwavetoday.com www.globalwavetoday.com For More information CONTACT : CONTACT : Felicia Chang Global Wave Today (248)918-3863 fchang@globalwavetoday.com www.globalwavetoday.com