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Management in Asia

Management in Asia. How do we beat the competition from the Far East 6th of February 2014. Henrik Anker Olesen. Henrik Anker Olesen (1971) has more than 20 years of leadership experience from leading blue chip and technology companies, including Maersk , IBM and Hewlett Packard.

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Management in Asia

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  1. Management in Asia How do we beat the competition from the Far East 6th of February 2014

  2. Henrik Anker Olesen • Henrik Anker Olesen (1971) has more than 20 years of leadership experience from leading blue chip and technology companies, including Maersk, IBM and Hewlett Packard. • Henrik is the owner of Transformation Partner, a consulting firm, providing advisory services in the areas of technology, shipping & logistics, mergers and acquisitions, Asia and leadership. • Henrik is passionate about leadership in business, technology and sports. Winning is not an event, it is an attitude. High performance, delivering results and having the will to win is key in how Henrik makes business. • Henrikholds an MBA and speaks Chinese, English, German and Danish.

  3. Asia Experience • 2 years Taiwan from 1993 • Shorter postings to Hong Kong, Singapore, Bangladesh and London • 3 years Thailand – with APMM/Maersk • 4 years China (travelling across Asia 150 days per year) – With IBM from 2005

  4. Working in China – Key Learning Points • Culture and people is everything • Guanxi and relationships – Wining and dining – paying the bills • The importance of face • Contracts – spirit, not content,. Be patient, be persistent, don’t give up. It just takes longer. • Dog eat dog. The Chinese way is fight your way up. They are all small emperors. In a big country. Group before individual always. Show due respect towards whomever you are dealing with. • Loyalty and respect. They work for you, not the company. If you take care, they will do whatever it takes. • Blingbling culture – have a laugh. • The importance of your business card and title. • Beijing vs. Shanghai vs Hong Kong. • Network – Get connected.

  5. China • Pollution is costing 5 % of GDP per year. 600,000 people are dying from pollution every year. • Logistics costs are 20 % of GDP vs 5 % in Europe and 9 % in USA. There is a significant lack of infrastructure, but the government is doing all it can to make the rigth Investment decisions, mainly in Western China. • There is little respect for Intellectual Property. Keep your Crown Jewels in your headquarter. • China Going Global. Chinese multinationals generally need the following in order to go Global; 1) Global Operating Model, 2) Global Business Processes 3) Global Management Teams 4) Global Products and Brands. • Western Multinationals going into China should consider that the market is very Diversified and consider that the large cities above 1 million people generally are in 3 tiers i.e. developed (mainly at the coast), developing (mainly Central and South China) and poor citites (Western and Northern China).

  6. Learning Points - China • Shamebased society in China i.e. do not get caught • Guiltbased society in EU and USA – Internal selfcontrol. • China has never joined the world before like WTO • Environmental disaster in the making – respiratory diseases • 50 percent savings rate. The Chinese have money to spend. The money that used to be in Europe before the financial crises now in China. • China is not a communistic country. Communism happened by accident. The central government is currently managing China as a corperation. To get rich is glorious. The Chinese will do whatever it takes to continue to grow prosperous. Chinese people are very entrepenureal.

  7. Working in China IV Market • 1.3 billion consumers. Forget the small Danish market. • East vs. west. Income gap. They are hungry unlike EU/USA. • Understand the history of China. Chang Kai Shek, Mao, current elite/regime priorities. • Build government relations if need for your position. • Develop a comprehensive China Strategy considering the vast differences in the country. Think big. Be careful of IP.

  8. Hvordan slår vi asiaterne og kineserne – erhvervsvenlig politik • Flad skat – væk med marginalskatten. Mere incitament til at arbejde. • Mere effektiv offentlig sektor – Højere produktivitet. • Forkortelse af dagpengeperiode, kontant -hjælpsperiode, afvikling af efterløn, forhøjelse af pensionsalderen. Mere aktivering og incitament. • Længere arbejdstid og lavere lønninger (ikke en vinder) • Gør det mere attraktivt at være selvstændig – Frem kulturen fremfor lønmodtagermentalitet • Dette bør skrives ind i en kommende borgerlig regeringsgrundlag. • Kontraktpolitikken som under Fogh genindføres.

  9. What should we be selling to China and Asia ? • Innovation and creativity • Green Tech – Pollution reduction (solar energy, wind mills, air cleaning technologies) • Leadership development – Attracting and developing next generation leaders (Applied NLP) • Wellness – Yoga, gyms, MMA, Spa offering, kayaking, cycling, rowing, etc.

  10. Questions and answers

  11. Thanks for your time

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