Pitfalls and Success Factors for Business in China
11 April 2018
12:30pm - 1:30pm AEST
The Alumni Relations team are pleased to invite you to this online webinar about the business environment in China– past, present and future.
The business environment in China for foreign enterprises has changed dramatically over the last ten years and will continue to change for the foreseeable future. The few people who have not personally experienced business in China will appreciate how quickly the environment can change. This is partially due to the speed with which the Chinese government can produce and implement policy. It can take no more than twelve months for a policy to be proposed, debated and brought into force across the country. Although there are significant variations at the regional level, China has an excellent mechanism for coordinating policy and practice change across the country. This results in dramatic changes to the economic and business conditions in China and is one of the principal characteristics that can be considered to be a permanent feature of the business environment. This means that traditional perspectives, such as competing through strategic resources, exercising intellectual property protection and even managing for the effect of institutions are difficult concepts on which to plan business activities in China, because they change so rapidly.
In addition, there is the emergence of the now very large Chinese middle-class. This economic sector is set to top 1 billion people by 2025. A middle-class Chinese already possess 60 per cent of the economic buying power of a developed country customer and this will be closer to 80 per cent or more of the buying power of a Western middle-class customer by 2025. China hasn't ignored innovation either and is in the twelfth year of sustained government policies aimed at increasing the innovative capacity of its industry. These factors mean that huge demand for new foreign products can develop (and disappear) very rapidly in China. There are some more permanent features of the environment, of course, which include the culture, challenges in gaining legitimacy as a foreigner and the logistical challenges of transporting goods and services across a large country with a massive population. All of these factors do change, but more slowly than the economic, political and technological changes.
About Professor Stuart Orr
Stuart Orr, Professor of Strategic Management at Deakin University has published in the area of business strategy, operations strategy and international strategy for the last 25 years. In addition to over 100 articles, he has published a number of books, including a popular teaching text on strategic management and a number of research monographs. His latest book examines the internationalisation of innovative SMEs to China.
Date and time
Wednesday 11 April 2018
12:30pm - 1:30pm AEST