1. China Emerged—Rethinking Global Strategies March 1, 2013... China Emerged: Rethinking Global Strategies...

2. Objectives: Discuss the opportunities and challenges of an emerged China, and new realities of the Post-Globalization Economy  Operating in the Post Globalization Economy  Comparing Emerged China (Post-Globalization ) to Traditional Globalization Strategies  Understanding the Magnitude and Impact of China Consumption  Articulate Operating Strategies for an Emerged China  Open Discussion 2

3.  Economic expansion in Asia  Emerging power of the global consumer  Increasing demand for market relevant products is driving emerging market growth China GDP / US GDP (1970 – 2010) Source: Wolfram/Alpha New Realities: Operating in the Post-Globalization Economy 3

4. Classical Globalization Strategy: Source:  Low Labor & Operating Costs Stable Currency Large Resource Pool Strong Supply Chain Infrastructure Market: Large & Growing Consumer Base Strong Currency High Per Capita Income Dynamic Retail Opportunities Post-Globalization Realities: Source:   Increasing Labor & Operating Costs Large & Growing Consumer Base Stable Currency Resource Constraints Domestic Supply Chain Investments Market: Slowing or Negative Growth High Consumer & Sovereign Debt Currency Weakness Increasing Poverty Maturing Retail Environment Success in Global Emerging Markets will require a fundamental redefinition of “Source” and “Market”, and these must be address for each individual market opportunity. Perspective: Ideas move instantaneously. Can the supply chain move as quickly? 4 New Realities of and Emerged China: Operating in the Post-Globalization Economy

5. China Emerged: Understanding the Magnitude and Impacts of China Consumption 5

6. 6 Articulate Operating Strategies for an Emerged China  Address Critical Issues: Tackle head-on the challenges of China’s transition from “The World’s Factory” to “The World’s Largest Consumer Market Opportunity.  Competitive Advantage: Achieve through an integrated go-to-market strategy from across the entire supply chain (consumer insights to consumer feedback)  Speed & Agility: Accelerate speed-to-market with fresh, new product with significantly lower business risks.  Fight Complexity: Find opportunities to simplify and adapt business models for market and retail opportunities in China.

7. 7 Operating Strategies

8. 8 Operating Philosophy PriceQuality Delivery Responsibility BALANCE

9. 9 Operating Strategies Buyer / Seller Tactical Transactional Temporary Negotiated Partnership Strategic Collaborative Planned Sustainable RELATIONSHIPS

10. 10 Operating Strategies LEVERAGE Simple – easy to use Relies on your power Single use environment Erosion of foundations Complicated – strategic use Creates strength Repeatable improvements Builds reliable foundation

11. 11 Operating Strategies INNOVATION Business Model People Tools Culture Process

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