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 work with the china market research reports is a strong one. One of many factors which will define the prosperity of your business relationship is risk management listed here are a couple of ideas to help you get stated.
Conduct an entire and Thorough Risk Analysis. It’s amazing the number of companies neglect to conduct some planning before they come across trouble. Risk analysis is hard in China however, not impossible, you have to depend on a lot more than local media and representatives in the firm (and local government) to understand the market position of the prospective partners. Your industry body or your chamber of commerce will be a good aid in learning more, or you might engage a professional consultancy to perform the digging to suit your needs.
Before you decide to enter a romantic relationship figure out how much risk you are prepared to bear and in case the offer exceeds that threshold – walk away. For those who have a risk management insurance policy for other countries you need to apply exactly the 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 plenty of beautiful balance sheet predictions at the start of the project, spend time planning around issues that may arise over the course of things.
Develop a full list of contingency plans for each and every eventuality including practical solutions for use for workarounds. Ensure you have set milestones for every stage in the project, plus an exit technique for every devote that plan too even though you don’t plan to use one.
Always remember that business in China is situated around personal relationships and copyright registration china may mislead or even outright lie to you if there is another personal relationship (away from yours) that could be damaged by the truth.
Many Chinese businesses are also not unconstrained entities as they are within the West and local political issues may have a significant influence on their ability to work with foreign organisations. This might be very difficult to gain visibility of and enquiries directly into what’s happening may be brushed off, particularly if you have any “lack of face” related to keeping you inside the picture.
Ideally you need to develop contacts and relationships in local government and central government who might be able to intercede as your representative if things look to be progressing towards failure.
The complexity of the business culture in China means that you need to spend more time and energy understanding working practices before you transfer to partnership plus it makes a risk management strategy an essential part of managing relationships successfully.
Of course there are exceptions towards the rule, and i also advise that once you do locate a long term mentality supplier or partner, stick to him, he can save you a lot of time, effort and money.
You need to hence, realise the fact that you must also have an array of potential suppliers and “friends” to change to in case the service you get does drop. Many foreigners just think that they hit the jac.kpot when they fjhflj one deal and they also just relax and expect a level of service like they receive inside their country without realising that the supplier will generally look first on the document translation to chinese he is going to make because deal rather than through the time period of your relationship.
The concept of quality: I love this word. It will be the most used word in china besides “yes, no and sorry”. Everything seems to be of the a high quality in china, that this word itself has lost its meaning. As Timothy Ferris says within his book “the 4 hour workweek”, the more you utilize a word, the more it looses its meaning.