China CEO IIVoices of Experience from 25 Top Executives Leading MNCs in China
Straight from the China CEO: Advice on leading operations in the world’s fastest-moving, highest stakes market. 25 top executives leading high-profile multinational companies in China, as well as seasoned and respected China-based consultants, give their front-line advice on succeeding in this market. Soaring spending power among the world’s largest consumer population, radical digital transformation creating a cash-less, ‘always on’ society, severe generation gaps – these are just some of the factors which have completely transformed China since 2006, the year when the first volume of China CEO was published. And these are three of the main reasons the authors have again teamed up to put together this second volume – collecting entirely new content via in-depth, exclusive interviews with the heads of 25 high-profile CEOs of multinational companies in China, as well as a number of highly respected consultants who have built their careers by delivering advice on succeeding in the market. In this book, CEOs and experts share their strategies for overcoming the most pressing issues faced by business leaders in China now, including: fierce competition from strong, globalized Chinese companies; working with the powerful, complex Chinese government; and successfully attracting the nation’s wealthy but fickle and tech-savvy domestic consumers. Top executives and consultants also divulge their secrets for keeping up with China’s astoundingly broad and rapid digital transformation in which the nation is now leading the world in mobile payment, online shopping, social media, Artificial Intelligence, and facial and voice recognition. They also discuss trends including localization of top positions in China, the rise of female top executives in the country and the challenge of attracting the nation’s highly international, purpose driven millennials. Hear directly from the China CEOs of: ABB, AB InBev, Bayer, Bosch, Carrefour, Coca-Cola, IKEA, Korn Ferry, Lego, L’Oreal, NIIT, Mango, Manulife, Marriott, Maserati, Microsoft, Philips, Scania, SAP, Sony, Standard Chartered, Tata, Udacity, Victoria’s Secret (Lbrands Int’l), Volvo, etc. Learn from seasoned China experts at McKinsey & Co, Economist Group, and more Written in a practical, easy-to-read format ideal for busy professionals, educators, and students China CEO II: Voices of Experience from 25 Top Executives Leading MNCs in China is an invaluable resource for any professionals seeking to work in or with China, or executives expanding their responsibilities in China, and those involved in international business, finance or executive programmes.
Foreword xi Chapter 1: Why China CEO II ? 1 China’s Boom Since 2006 3 Who’s in China CEO II ? 6 Front-Line CEO Analysis: China Then and Now 10 Chapter 2: Prerequisites for China CEOs 15 Must-Have Qualities for Foreign CEOs in China 17 Foreign Managers’ Top Mistakes in China 29 Shifting from Foreign to Local CEOs 32 Qualities Needed for Today’s China CEOs (Either Foreign or Chinese Nationals) 42 Summary of Tips 51 Chapter 3: China’s Changing Talent Pool 53 Chinese Professional Women: Holding Up Half the C-Suite 60 Meet China’s Millennials 67 Strengths and Weaknesses of China’s Talent Pool 72 HR Strategies 80 Summary of Tips 93 Chapter 4: China’s Digital Revolution 95 The Rise of China’s Digital Champions 105 Where Digital China Dominates 111 Navigating China’s Digitized Landscape 118 Digital Strategies 124 Summary of Tips 130 Chapter 5: The Transformation of Chinese Consumers 131 Profile of Today’s Chinese Consumer 142 Strategies for Winning Chinese Consumers 163 Summary of Tips 170 Chapter 6: Competing in China 171 Why Multinational Corporations in China Have Lost Ground 173 Why Chinese Players Have Gained Ground 182 Strategies for Facing Chinese Competitors 192 Summary of Tips 201 Chapter 7: Managing Relations with Chinese Government and Foreign Headquarters 203 Part I: Managing with the Chinese Government 204 Government Relations Challenges 210 Government Relations Strategies and Solutions 226 Part II. Managing Relations with Headquarters 230 Success Factors for China Leadership’s HQ Relations 232 Communicating with Headquarters 236 Summary of Tips: Strategies for Government Relations 241 Summary of Tips: Strategies for HQ Relations 241 Chapter 8: Living in China 243 Non-Work Challenges for the Foreign Manager 245 Potential Problems for the Foreign Family 247 “Next-Pats” in China 250 Positive Aspects of Life in China 252 Strategies for Adapting to China 255 Summary of Tips 260 Chapter 9: The Future of MNCs in China 261 China’s Economic Outlook 263 The Changing Role of International Companies in China 267 About the Authors 271
JUAN ANTONIO FERNANDEZ is Professor of Management, Associate Dean and Director of MBA Programme at China Europe International Business School (CEIBS), which ranked 5th in the Financial Times Global MBA Ranking 2019. He has 20 years of experience in China and has co-authored six books. LAURIE UNDERWOOD is a Senior Associate Professor of Management (adjunct) with the Xi'an Jiaotong-Liverpool University's International Business School Suzhou and a senior consultant with Sino Associates. Her current areas of research, consulting, and teaching expertise include intercultural business communications, corporate communications, relationship marketing, and technology-assisted communications. She has 20 years of experience in Greater China and has co-authored three books.
Praise for CHINA CEOII "Juan Antonio Fernandez and Laurie Underwood have done the business world a great service by drawing out the common themes that enable corporate success in China. Their newest book shows that succeeding in China is possible and that specific mindsets and capabilities can help. Required reading for any China-engaged executive!" —Jonathan Woetzel, Senior Partner, McKinsey & Company; Director, McKinsey Global Institute "Everyone knows that China is big, but it's also fast – fast to market, fast to adapt and fast to go digital. Foreign companies risk losing ground in China if they don't keep up with China speed. China CEO II is an important book for anyone managing a business in China, or for people interested in learning how innovation in China will affect the rest of the world." —Ker Gibbs, President, The American Chamber of Commerce in Shanghai "Professors Fernandez and Underwood have collected the experiences and wisdom from the CEOs of the world's greatest companies as they redefine their business models to meet the ever-changing China Challenge. If you want to advance your career, you better get to China." —Curt Ferguson, President, Greater China and Korea, Coca-Cola "The second volume of China CEO again reveals insights into how multinational CEOs are coping with the world's fast-evolving second-largest economy." —Ding Yuan, Dean, China Europe International Business School (CEIBS)
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