CHINA CEO: A Case Guide for Business Leaders in China

Some Western business leaders are moving into China without any
clear knowledge of the many pitfalls they will encounter: the weak
rule of law, forceful governmental intervention, a scarcity of
managerial talent, the likelihood of counterfeiting, the fast paced
business environment and surprisingly aggressive local competitors.
This book uses case studies to both illuminate and examine these
key managerial challenges. Each case focuses on a specific topic
and is complemented with commentaries from professors and
executives who have extensive front-line experience in China. The
cases are the product of three-year research and are well-tested in
MBA and executive courses.

The authors' philosophy is that readers can learn most
effectively through the experience of others captured in real
cases! The book includes a broad range of companies, such as
Emerson, Eli Lily, General Motors, Peugeot, Carrefour,
Daimler-Chrysler, Picanol. It also includes more personal
experiences concerning the many challenges of expatriate-living in
China , some of whom have started their own businesses.

The book provides concise but insightful analysis to help
readers to get the most from the case studies. As a result, this
book will help you get better prepared to face the varied
challenges you will find in China. These cases complement the
material presented in a previous work, China CEO: Voices of
Experience from 20 International Business Leaders, also published
by John Wiley & Sons.

Dr. Juan A. Fernandez is Professor of Management at CEIBS,
Shanghai, China. He earned his PhD from IESE (Spain) in 1997. He is
frequently invited to give presentations on how to manage business
enterprises in China by leading multinationals and has recently
given presentations in China, South Korea, Japan, India, Europe and
the United States. His work has been published in Harvard Business
Review (Spain), Business Week-China, Organizational Dynamics,
Business Strategy Review, and the Asian Case Research Journal. He
was the co-author of China CEO: Voices of Experience published by
John Wiley & Sons in 2006. His third book, China's State Owned
Enterprise Reforms: An Industrial and CEO Approach, was published
by Routledge in 2006.

Dr. Shengjun Liu is the Assistant Director of Case
Development Center of CEIBS. His research interest includes
corporate governance, human resource management, and emerging
Chinese multinationals. He first worked at Shenzhen Stock Exchange
before joining CEIBS (China Europe International Business School).
His publications have appeared in Asia Case Research Journal and
leading Chinese journals such as Harvard Business Review (China),
as well as in some widely read Chinese newspapers. He is also the
co-author of Selected Cases of CEIBS by China CITIC Press.

Some Western business leaders are moving into China without any clear knowledge of the many pitfalls they will encounter: the weak rule of law, forceful governmental intervention, a scarcity of managerial talent, the likelihood of counterfeiting, the fast paced business environment and surprisingly aggressive local competitors. This book uses case studies to both illuminate and examine these key managerial challenges. Each case focuses on a specific topic and is complemented with commentaries from professors and executives who have extensive front-line experience in China. The cases are the product of three-year research and are well-tested in MBA and executive courses.

The authors' philosophy is that readers can learn most effectively through the experience of others captured in real cases! The book includes a broad range of companies, such as Emerson, Eli Lily, General Motors, Peugeot, Carrefour, Daimler-Chrysler, Picanol. It also includes more personal experiences concerning the many challenges of expatriate-living in China , some of whom have started their own businesses.

The book provides concise but insightful analysis to help readers to get the most from the case studies. As a result, this book will help you get better prepared to face the varied challenges you will find in China. These cases complement the material presented in a previous work, China CEO: Voices of Experience from 20 International Business Leaders, also published by John Wiley & Sons.

Introduction xi

Acknowledgements xix

1 Leadership in China: Putting the heart where the mind is
1

Introduction 2

Case study: Emerson Electric (Suzhou) Co., Ltd 7

CASE COMMENTARIES

Howard Ward, Professor of Management, CEIBS 26

Gousheng Zhu, Operation General Manager, BOC China 30

2 Human resources in China: Chasing the runaway bride
35

Introduction 36

Case study: Eli Lilly and Company, China affiliate, war for
talent 42

CASE COMMENTARIES

William H. Mobley, Professor of Management, CEIBS 58

Founder of Mobley Group Pacific Limited

Angeli Kwauk, Area Director of Human Resources, China Grand
Hyatt Shanghai 60

Xiaotong Li, HR Director, Shared Service Organization 64

Henkel (China) Investment Co. Ltd

3 Joint ventures: Dancing the Chinese tango 69

Introduction 70

Case study: Guangzhou Peugeot Automobile Co., Ltd 76

CASE COMMENTARIES

Per V. Jenster, Professor of Management, CEIBS 88

Wei Joo Chai, Factory Manager, Shanghai Kerry Oils and Grains
Industries Ltd 91

4 Dealing with headquarters: The art of juggling 99

Introduction 100

Case study: Picanol China 106

CASE COMMENTARIES

Willem P. Burgers, Professor of Marketing and Strategy, Bayer
Healthcare Chair in Strategy and Marketing, CEIBS 125

Hans-Peter Bouvard, Director Business Dev. Northern Asia Reichle
+ De-Massari Far East (Pte) Ltd 128

Gary An, General Manager, Amphenol East Asia Electronic
Technology (Shenzhen) Co., Ltd, Amphenol Commercial Products
(Chengdu) Co., Ltd 131

5 Counterfeiters in China: Catch me if you can 135

Introduction 136

Case study: GM China versus Chery, disputes over intellectual
property rights 141

CASE COMMENTARIES

Gerald E. Fryxell, Professor of Management, CEIBS 155

Doug Ho Song, Managing Director, Doosan Leadership Institute,
Doosan Group 157

6 Chinese consumers: The new kids on the block 161

Introduction 162

Case study: Mercedes-Benz and Wuhan Wild Animal Park 168

CASE COMMENTARIES

Dongsheng Zhou, Professor of Marketing, CEIBS 179

Yufeng Zhao, General Manager, Progress Strategy Consulting Co.,
Ltd 182

7 Government relationship: Playing Chinese poker 187

Introduction 188

Case study: Carrefour China, revamping business to follow local
rules 193

CASE COMMENTARIES

Thomas E. Callarman, Professor of Operations Management, CEIBS
209

Sergiy Lesnyak, Chief Representative, Ferrexpo Group in China
211

Xuezheng Li, Global Sales Director, Beijing BOE Optoelectronics
Technology Co., Ltd, Former Chief Public Relations Officer, BOE
Technology Group Co., Ltd. 124

8 Expatriates in China: Lost in translation 219

Introduction 220

Case study: The lollypop that turned bitter, the experience of
an expatriate couple in China 225

CASE COMMENTARIES

Bala Ramasamy, Professor of Economics, CEIBS 240

Bettina Ganghofer, Deputy General Manager, Shanghai Pudong
International Airport Cargo Terminal Co., Ltd (Lufthansa JV)
243

9 Foreign entrepreneurs: Chasing the China dream 247

Introduct…