Doing Business in China and How Great Managers Manage

LISTENING
Harvard Business School, http://www.oculture.com/weblog/2007/02/business_school.html, September 28, 2006
China is one of the top country where people should start doing investment recently. Company performance of Chinese and multinational Chinese company that indicate the average return on asset is somewhere around 5% for the company operating in China. Given the business environment that seems surprisingly low. There are some success speculation, but at the same time average is not what they expected to see. Politic is so important that highly essential for China domestic company which probably could not compete very well without the help of government. Before, economic activities were very much concentrated in the area along the coast, but this strategy is no longer exist now. The other developments are hot grow in one particular area make the cost of production increase in that area. For example: Shanghai is no longer a place for cheap labour, so all grow are gradually move up a long the big river that can serve Chinese transportation for the goods that Chinese manufacture. Capital of Chinese domestic companies is still a big issue since banks do not loan to small enterprises unless they know someone who can recommend their business. It is not up to the companies to decide whether they want to be listed on the national stock market. Therefore, asset of capital is very much influences by the relationship.