The risks of working in China are well documented, and foreign firms often find themselves leaving the country with their tails between their legs. Having said that, with booming economic conditions, the temptation to do business with the china market research reports is a strong one. Among the factors that will define the achievements of your business relationship is risk management here are a few ideas to get you stated.
Conduct a total and Thorough Risk Analysis. It’s amazing the number of companies fail to do some planning before they run into trouble. Risk analysis is hard in China but not impossible, you should rely on more than local media and representatives in the firm (and native government) to understand the market position of the prospective partners. Your industry body and or your chamber of commerce will certainly be a good assist in discovering more, or you might engage an expert consultancy to accomplish the digging to suit your needs.
Before you decide to get into a romantic relationship see how much risk you are willing to bear and when the sale exceeds that threshold – leave. For those who have a risk management insurance policy for other countries you ought to apply the exact same high standards to dealing in China rather than lower them simply because you are salivating at the idea of higher profits.
Establish a Problem Prevention Culture. As well as filling in lots of beautiful balance sheet predictions at the beginning of the project, spend some time planning around problems that may arise during the course of things.
Create a full list of contingency plans for each and every eventuality including practical solutions for use for workarounds. Make sure you have set milestones for each and every stage from the project, and an exit strategy for every spot in that plan too even when you don’t intend to utilize one.
Never forget that business in China is based around personal relationships and patent application process may mislead as well as outright lie for you if there is another personal relationship (outside yours) that could be damaged from the truth.
Many Chinese companies are also not unconstrained entities because they are inside the West and native political issues could have a significant impact on their ability to work with foreign organisations. This might be tough to gain visibility of and enquiries in to what’s happening may be brushed off, particularly when there is any “loss of face” related to keeping you within the picture.
Ideally you need to develop contacts and relationships in local government and central government who could possibly intercede as your representative if things turn to be progressing towards failure.
The complexity from the business culture in China means that you need to spend more time and energy understanding working practices before you move into partnership and it makes a risk management strategy an essential part of managing relationships successfully.
Needless to say you can find exceptions towards the rule, and i also advise that when you do find a long term mentality supplier or partner, stay with him, he will save you a lot of time, effort and funds.
You need to hence, realise the fact that you must also have an array of potential suppliers and “friends” to turn to in case the service you obtain does decrease. Many foreigners just feel that they hit the jac.kpot once they fjhflj one deal and they also just sit back and expect a degree of service like they receive inside their country without realising that the supplier will in most cases look first at the interpreting translation services he will make because deal as opposed to during the duration of the connection.
The meaning of quality: I really like this word. This is the most used word in china besides “yes, no and sorry”. Everything appears to be of the an exceptional in china, that this word itself has lost its meaning. As Timothy Ferris says in his book “the four hour workweek”, the greater you use anything, the better it looses its meaning.