Managing Growth, Olympic Sales, and Expectations in China

Monday, July 30, 2007 8:22
Posted in category The Big Picture

There have been a few articles over the last week that I came across on other blogs, or news sources, that are a bit outside my traditional scope of coverage.  Rather than create a full post, I will just offer my reasoning for why the posts/ articles should be read.

Chinese Growth: An Issue of Supply, Not Demand by Dr. Enzio von Pfeil
If you are like me, sometimes it is difficult to put into context a lot of the macroeconomic data that is coming out on a daily basis. there are a lot of variables, and their impact, that may not be fully appreciated by someone in industry. This week on Seeking Alpha though, Dr. Enzio von Pfeil has put together a piece where he answers several common economic issues in China (inflation, export growth, economic overheating, etc), and then links them back to the respective underlying economics.

Female Weightlifters, Spanish Basketball Stars, and Kim Jong-il
There has never been a better time to quote slate than this article which dives into the behind the scenes strategy plays of sports apparel manufacturers in China. Why I feel this article is important for readers is that this article does an excellent job of showing the different approaches Western and Chinese firms have at grabbing market share. There are definite lessons that readers (especially if they are targeting China) can draw as they should how Chinese firms are aware they cannot compete at high end, so they are developing strategies around that, and vice versa. A very interesting article, and true to Slate’s nature, they have kept an edge on it.

China Success = Managing Expectations (Back Home)
Coming from China Solved is very timely piece about managing expectations at home. for the past few years, I would say that this was an easy thing to do as “but it is China” would get most managers out of about anything, and few hours of “educating” clients would prove very useful in either slowing them down or speeding them up. Where I think this piece is important though is that recent event have shown that overseas clients and offices need to be hands on with respect to China operations. Big take away in my eyes for the reader is through the management of expectations, what one is doing is managing risk. through honesty and transparency, firms will reduce risk and volatility.

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