Managing China

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  • June 8, 2008 at 4:56 am #5033
    Rob_Hugo@PortNW
    Keymaster

    CNBC World channel hosts a program on Sunday morning, "Managing China." Occasionally, I watch this program which is subtitled and focuses on the economic development of private enterprises in China. Each program consists of an in-depth interview with a Chinese businessman, CEO, president, or entrepreneur. The interview covers the successes, failures, and challenges of private business in China. This morning a CEO discussed the organizational challenges of his business. He compared the role and responsibilities of the "organizational leader" to that of the "bosses" (managers), and explained that the split between decision-making is 50% to 51% respectively. He explained that the 1% difference is due to the fact that bosses are closer to the day-to-day operations and therefore should have more decision-making power and greater responsibility for results of those decisions.

    Last night, I was reading from the book Chinese Civilizations the chapter on the Communist Party. There were similarities between the CEO's comments and the principles of the party. The chapter also points out that there is an intended difference between what is presented to outsiders, and to the Chinese people. I wonder which group is the target of this program???

    Valerie

    June 29, 2008 at 4:37 am #29054
    Anonymous
    Guest

    This morning on Managing China, the guest was a female entrepreneur, Wang Jaifren. She was a founding partner of Bright Diary, a diary farm in China which was very successful until recently. She left the company and shortly after joined GG Capital, a venture capital company as a partner. The program host stated that Wang has been outspoken about economic development in China which likely led to her exit from Bright Diary. As a result, he believes that her comments about business in China are honest.

    Wang discussed her leadership style explaining that she prefers the democratic management style which encourages teamwork. She solicits input and feedback from her team and performs most administrative tasks herself rather than depend on a secretary. Wang believes that private industry will continue to expand, and state-owned businesses will include only those vital to the nation of China.

    An interesting fact presented about Bright Diary is that recently profits have declined as production costs increased. The company has applied to the government to increase prices. So, it seems that the government controls prices for "private businesses", maybe in some industries. I imagine that private business must justify their price increases which may not be such a bad idea for those industries important to national security including energy. This approach could certainly help in the U.S. to regulate the price of gasoline, and manage speculation wouldn't you agree?

    Valerie

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