post trip evaluation
overall, i find this trip very fruitful. I get to learn alot of things about International Business and how the environment is like out of Singapore. Although we are there for a study trip, there are always fun times. These fun times have brought our group closer together and we've enjoyed each other's company. This would be all in memories!
How i wish this trip would be longer thou i miss home. If there is another trip like this, i definately would not miss it! I would love to go again!
I love IBSM 2007! =)
Thursday, May 3, 2007
Friday, April 27, 2007
National Torch High-Tech Industrial Development Zone of ZhongShan
The building!
In 1990, the company was approved to be one of the first State-level development zones in 1991 to seize the opportunity to develop hi-tech industries and large-scaled manufacturing while foreign countries are restructuring their industries. At current, there are 30 international companies involved. Within 3 years, they have innovated more than 500 products.
Products:
o Biomedical
o Automobile fitting
o Modern packing printing
The zone is situated in the center of the Pearl River Delta with favourable transportation networks. Means of transportation are like by road, by water, by air and by railway.
The zone offers a comprehensive set of facilities of telecommunications, hospital, school, hotels, shopping centers and entertainment places. Combining various functional districts and industrial parks, a hi-tech industrial city has formed integrating research & development, production, logistics and living.
How do they attract foreign investors?
They classify the products into 5 major areas and each area is allocated a certain space of land. Because of the facilities available, they are able to attract foreign investors as they will look for the best facilities in the region. To attract foreign investors, exemption and reduction of income tax are given. There are also no limitation in selling proportion in domestic market if the hi-tech products are state-encouraged and up to international advanced level for its technology, or complementary with the technology in the province. Foreign investments are more than 95%.
Factors that they will consider before accepting:
o Constraint of area
o Pollution
o Whether it has financial abilities/ profit ability
this was posted one of their tv screens!
Wednesday, April 25, 2007
19 March 2007
Sunten
Main products of Sunten
o Dry type transformer (largest production)
o Rector
o Substation
o Switch gear
Sunten
Main products of Sunten
o Dry type transformer (largest production)
o Rector
o Substation
o Switch gear
the transformer!
Sunten was set up in 1988. They have imported technology and facilities from Germany. Sunten also has successfully developed six generations of dry-type transformer products and this is the first in China.
we were given an introduction of Sunten!
Main partners:
o General electric
o Tsinghua university
o Xian Jiaotong university
o Schneider electric
The excitation transformer is one of their best products. They have incurred 160 sales with 40 out-sales. Their sales are either from local or they get others to help them promote such as thru agents. Sales also have been increasing continuously over the years. However, their prices are slightly higher by 5% to 10%. The reason is because their products are of better quality and the customers also trust them the most. Many big companies such as Toyota also uses their products.
A company no matter what will definitely face obstacles and challenges. Sunten is no different. They have difficulties getting raw materials as copper price has increased. Steel price has also increased as well to double or triple the pricing. Another obstacle faced is that there are many competitors in this industry. By pricing their products lower, it would also affect the market share of the company. There are also internal problems such as limited capital and control of employees.
Knowledge of culture is important. Guanxi is also important. Therefore, have to get locals to enter the company so that there will not be much variation. Thus business can be set up more smoothly. Also, studying of business environment first is also important.
The most important thing is the quality of the product! Once there is good quality in the product, there will be brand recognition too. This is more important as it is long-term as compared to short-term promoting.
They also attract foreign investors by giving tax incentives. Thou this is only short-term to those foreign investors.
18 March 2007
Yong Xiang Furniture
Yong Xiang Furniture
Yong Xiang Furniture is a distribution factory as they do not sell it directly to customers, instead they sell through trading companies and exported to other countries such as Europe, USA and middle east. This company has operated for over 10 years specializing in sofas. They have local designers to design their sofas and the sofas can even be customize according to customers preference upon ordering. They have to constantly improve their designs to keep up with competition.
How do they attract foreign investors?
o Thru own website
o Trade companies to introduce buyers
o Advertising
o Trade fairs
One major problem that they faced is that they are unable to get wood during certain seasons such as during May to July, where they are low seasons for sale. Another major problem is that they may not have enough sales to cover all the operating costs all the time.
Why they choose to set up there?
o Nearer to the main branch
o Cut transportation costs
Disadvantage to set up there?
o Electricity limited. Therefore, there will be 2 -3 days in a week that there will be electricity cut.
o More cost incurred as a result. But they have resolved the problem by having their own generator
One interesting fact is that they do not put their company name or logo on the sofa itself. Therefore, they are able to customize any designs which the customer requests.
The most exquisive sofa set!
How cool! I could customize my own Hello Kitty sofa in the future! =)
16 March 2007
Piano Factory
We visited a Piano factory in Guangzhou and that factory is the largest piano factory too. We get to see how the production of the piano is like, from the scratch to the testing out of each musical note. How amazing it is!
The brand of the piano that they manufacture is Pearl River and they have 300 over retailers around. They produce base on orders instead of mass production. They not only manufacture piano but they also manufacture and produce other instruments such as guitar and violin. Their annual sales are 7 to 8 million and mainly comes from production of piano.
After visiting the company, I was amazed at how fast they are able to break into the market and having pretty good sales. I also leant that when you want to go into production line, you have to clear of your customer’s taste and preference. That is very important!
Piano Factory
We visited a Piano factory in Guangzhou and that factory is the largest piano factory too. We get to see how the production of the piano is like, from the scratch to the testing out of each musical note. How amazing it is!
The brand of the piano that they manufacture is Pearl River and they have 300 over retailers around. They produce base on orders instead of mass production. They not only manufacture piano but they also manufacture and produce other instruments such as guitar and violin. Their annual sales are 7 to 8 million and mainly comes from production of piano.
people @ work
Other products that they manufacture:
At the very beginning, the pioneers spent 30k to build up the factory. They believe that determination is the route to success. Leadership is also important in leading the workers so that they would bring the company to a higher level.
The company broke into any countries around the whole, selling worldwide. Countries such as Europe and USA. However, many difficulties arose when breaking into Europe and USA. they have to try all means to protect the brand and create brand awareness as Europe and USA have their own local brand of pianos. They must also make the local people trust and have faith in the brand, Pearl River. Many of the customers would tend to make comparison with brands such as Yamaha. Therefore, they had to use local manpower to sell the product as only the local would know the culture and preference at the tip of their fingers.
In order to create brand awareness, they have to do advertising. They have advertising means such as piano competitions, sponsorships for events and even charity shows.
They have other production centres around China such as Hong Kong and Macau. The company also bought over a Germany brand to be manufactured in China. But this brand only appeals to locals in Germany as the prices are more steep and the China people aren’t very familiar with the brand.
The company broke into any countries around the whole, selling worldwide. Countries such as Europe and USA. However, many difficulties arose when breaking into Europe and USA. they have to try all means to protect the brand and create brand awareness as Europe and USA have their own local brand of pianos. They must also make the local people trust and have faith in the brand, Pearl River. Many of the customers would tend to make comparison with brands such as Yamaha. Therefore, they had to use local manpower to sell the product as only the local would know the culture and preference at the tip of their fingers.
In order to create brand awareness, they have to do advertising. They have advertising means such as piano competitions, sponsorships for events and even charity shows.
They have other production centres around China such as Hong Kong and Macau. The company also bought over a Germany brand to be manufactured in China. But this brand only appeals to locals in Germany as the prices are more steep and the China people aren’t very familiar with the brand.
AWESOME! how i wish its mine!!
After visiting the company, I was amazed at how fast they are able to break into the market and having pretty good sales. I also leant that when you want to go into production line, you have to clear of your customer’s taste and preference. That is very important!
Tuesday, April 24, 2007
15 March 2007
Regional Director of IE S’pore, Mr Nee
After our lunch, we had a networking specially arranged with the Regional Director of IE S’pore, Mr Nee. Personally I feel that he has managed to relate what are the important factors to take note when doing business in China and this has helped me to understand International Business as a whole as well as my group project topic better.
Before this, I had very little understanding of IE S’pore. But now I know that IE S’pore helps ready successful company to realize their dream, which is to look for bigger area for investment out to Singapore. This would also help them strengthen their base. But they are not responsible of bringing the company out of Singapore. They help to look out for business opportunities and assist them should they need help such as bringing them to the various embassies and government.
Guang Dong has the largest consumer market in China. But with very strong imitation around as compared with the city which is more sophisticated and international.
Mr Nee also said that “Guanxi” is more important in the less developed part of China thou generally its more important than in Singapore. The basic is still important where cases are not so clear in black and white. This leaves space for ambiguity where they are able to satisfy nearer to what you want. There is space for interpretation of the law. Therefore, if you were to maintain good relationship with the government officials, they would be able to interpret it in a good way. BUT… it is not true to solely have good relations only. For example, in a F&B industry, if the food is not nice, how big space given for shop is of no use also. Therefore, Mr Nee thinks that “Guanxi” acts more of an enhancement.
Understanding the culture of China is also important when doing business in China. but you need not know everything at the start as things could be learnt along the way.
One important thing that Mr Nee said was that :”Attitude is the most important in doing business”. I agree with what he says as you must have the right attitude of doing business, must be able to learn fast and adapt to the environment fast. If without the attitude, no matter what, you will not succeed!
We also should not have the complaining spirit. Instead, we should comply and adapt to the surrounding fast. If one was to keep complaining, he will never succeed. But some things should not change. The principle that we, Singaporeans, should keep and uphold is integrity. Singaporeans might be known “stupid” to HK as we think that cheating and bribery is wrong. But actually we should not fall into temptation.
I find this networking session very fruitful as I was able to learn a lot from Mr Nee. This session has left a very strong impression to me that I would always quote what he has said.
Regional Director of IE S’pore, Mr Nee
After our lunch, we had a networking specially arranged with the Regional Director of IE S’pore, Mr Nee. Personally I feel that he has managed to relate what are the important factors to take note when doing business in China and this has helped me to understand International Business as a whole as well as my group project topic better.
Before this, I had very little understanding of IE S’pore. But now I know that IE S’pore helps ready successful company to realize their dream, which is to look for bigger area for investment out to Singapore. This would also help them strengthen their base. But they are not responsible of bringing the company out of Singapore. They help to look out for business opportunities and assist them should they need help such as bringing them to the various embassies and government.
Guang Dong has the largest consumer market in China. But with very strong imitation around as compared with the city which is more sophisticated and international.
Mr Nee also said that “Guanxi” is more important in the less developed part of China thou generally its more important than in Singapore. The basic is still important where cases are not so clear in black and white. This leaves space for ambiguity where they are able to satisfy nearer to what you want. There is space for interpretation of the law. Therefore, if you were to maintain good relationship with the government officials, they would be able to interpret it in a good way. BUT… it is not true to solely have good relations only. For example, in a F&B industry, if the food is not nice, how big space given for shop is of no use also. Therefore, Mr Nee thinks that “Guanxi” acts more of an enhancement.
Understanding the culture of China is also important when doing business in China. but you need not know everything at the start as things could be learnt along the way.
One important thing that Mr Nee said was that :”Attitude is the most important in doing business”. I agree with what he says as you must have the right attitude of doing business, must be able to learn fast and adapt to the environment fast. If without the attitude, no matter what, you will not succeed!
We also should not have the complaining spirit. Instead, we should comply and adapt to the surrounding fast. If one was to keep complaining, he will never succeed. But some things should not change. The principle that we, Singaporeans, should keep and uphold is integrity. Singaporeans might be known “stupid” to HK as we think that cheating and bribery is wrong. But actually we should not fall into temptation.
I find this networking session very fruitful as I was able to learn a lot from Mr Nee. This session has left a very strong impression to me that I would always quote what he has said.
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