The document discusses differences between Chinese and Western management styles. Chinese companies tend to have flat organizational structures with few management layers and everyone reporting directly to top executives. This allows for rapid decision-making and adding new business lines. Chinese private companies also experiment with creating their own ecosystems by developing suppliers and building strong personal relationships. Meanwhile, Western companies typically have more distance between engineering and manufacturing teams.

1. Presented by:
Ceezee
Yasmin
S.Kanwal Noreen
Chahrazad

2.  Introduction
 China’s Unique Management Practices
 Structuring Organizations Simply
 Examples
 Wanxiang’s Key Success Factor
 Sany’s Key Success Factor
 Localizing Value Propositions
 Developing Products Quickly
 Difference Between Chinese Style And Western
Style
 Conclusion

3. What is Management?
Management is the process of reaching organizational
goals by working with and through people and other
organizational resources.
Management in China
I. State owned enterprise – Experiment with western
management practices
II. Private owned companies – New management
practices

4.  Creation of their own ecosystem
In this perspective, business leaders needs to build
everything.
e.g. Hai Di Lao’s Key Success Factor
 Adept in Management
 Leaders have to be as proficient at managing the
state as they are at managing operations.

5. Trading Mentality
 High Asset Turn-Over
 Good Timing over Perfection
Organization Structure
 Everyone reports at the top

6.  China’s business leaders decentralise which helps
them respond to market shifts and rapidly add new
business lines chinese companies create structures
that give business unit nearly total autnomy
-Exemple:

7.  An organizational flat structure with few or no
levels of middle management between staff and
executives. It allows as many direc reports as
possible
Example :

8. Brands
wanxiang
Sany
Media
Whirlpoo
l
Hotpot
restaura
nt
Tencent
QQ

9.  Automotive Part
 Bicycle parts from scrap material
 Manufacturing components for Detroit’s Big Three:
 Now, buying and turning around the factories of U.S.
automotive component makers.

10. Key Factors:
Brought Cheaper Parts from Chinese Factories:
• Feed the higher-value machining
• Finish processes in United States.
Invested Other Companies :
• Sources
• Provides lean management coaching
Built Stronger Relationships
• American managers
• Employees

11.  Company operate in two time frames:
Executing today’s business
• Adding resources
• Separate Manager
• Autonomy
• Responsible
Expansion of Business
• Incubating new business models
• launching new brands.
• Separate Manager
• Autonomy
• Responsible

12.  Sany’s major product lines:
◦ Ready-mix cement trucks
◦ Excavators
 Sold to local leasing companies
◦ Rent to local contractors on a job-by-job basis
◦ Strong network connection
◦ Well connected
 Compete on their preferential access
 keep capital commitments down.
PTA is a trading bloc that
gives preferential access to
certain products from the
participating countries.

13.  Founder: Zhang Yong
 Fast growing hot pot restaurant
Key Factor:
Spot Recruit Retain
Store Managers
by age of 21

14.  To test trainees:
◦ Assign high responsibility tasks
◦ Negotiating
◦ Takeover a rival chain
 Coaching
 Feedback
 Training
 Retening
Incentives to Manager
• Trips outside China
• Housing
• Education for their children
Creates his own suppliers (Strengthen Bench Mark )
• By offering wannabe entrepreneurs
• Promise lots of future business

15. Pulls Capital Sources
• Local governments (financial incentives and subsidies)
• Chinese Communist Party angels
• Provincial investment funds
• Friends of friends
Strong personal relationships
• Show capability to help bureaucrats meeting their goals.
• Increase their credit ratings

16.  Launched in Shenzhen in 1998
 Free instant-messaging service named QQ
 Tencent, China’s leading internet service portal
 Gain an advantage by quickly rolling out new
offerings
 Tencent now has over700 million users
 Less Innovating more imitating

17.  Rate of adding more features
Features
Games
Search
engine
Ecommerce
marketplace
Music
Micro blogs
Virtual
currency Q-
coins

18.  China is still developing
◦ inexperienced customers
◦ undercapitalized companies
◦ Silent brands
◦ unique local business customs
◦ Local traditions
Value Proposition
Statement convinces a
potential consumer that one
particular product or service
will add more value or better
solve a problem than other
similar offerings.
Localization
provides
companies
a way to
capture value

19.  The way chinese companies develop new products
from exixting technologies and ramp u large-scale
production is very speed
-Examples:KFC; GOOD BABY INTERNATIONAL
HOLDINGS

20. Skilled chinese companies rely on are mainly
downstream industrial competencies such as :
 Ability to lunch new offedring examples
wangxiang; midea;good baby international
holdings
 Prototypes wiftly to meet buyer’s demand
 Adapt designs to use differents materials when the
originals were expensive or available
 Modify equipement so that they could make
differents products
 To keep cost down

21.  Trouble is, entrepreneurial people tend to leave as
quickly as they sign on, which is why turnover in
China’s private companies is upwards of 20% a
year.
 most companies have invested little in talent
retention and are weak when it comes to coaching
 Feedback and training

22.  The findings of this articale increase our understanding of corporate
social responsibility from the consumers perspective in a chinese
and western setting :
 Based on primary data Chinese companies generally keep engi-
neering and manufacturing close, often co- locating them.
Multinational firms usually maintain greater organizational distance
between the two functions. They Tend to acquire new technologies
either through formal licensing deals or by reverse-engineering
them, but they keep the physical work of experimentation and
production in-house. Multinationals, with their opposite re- source
endowments, do the opposite. Chinese companies also hire more
midlevel engineering and manufacturing people, even though
they’re getting expensive. But for WESTERN COMPANIES’ process
is usually design to driven by the desire to save production steps and
labor hours, however the added en- gineering and manufacturing
bandwidth gives the Chinese the luxury of tinkering, which can solve
difficult problems. As an example when Apple had to re-design the
screen of its first iPhone at the last minute, its Shenzhen supplier
roused its engineers out of bed, developed a bet- ter screen, and
overhauled the production line—in just four days’ time.

23.  In summary, we were able to explore the uniqueness of
Chinese corporate governance practices with regard to
ownership and temporal variables. In addition, we were able
to demonstrate the mediation effect of firm size on the
relationship between executive age and firm performance.
Our results suggest that while younger firms are more
successful in China, the state is still the dominant player and
will likely be so for some time.
 Unlike the west, private and institutional ownership do not
make that much of a difference in terms of firm performance.
In addition, duality and board size are not determining
factors while board vigilance has minimal impact. On the
other hand, international ownership is as important as state
ownership and larger companies enjoy the benefits of hiring
executives imbued with guanxi. In closing, as global business
practices are still relatively diverse, both researchers and
practitioners should be alert to differences in governance
practices across different societies.