Thursday, January 14, 2010

It is possible for Chinese to run a big Multi-national business?

There is avery sucessfull midium size company, running by a few experienced people. Snce they are the best kind of management people from the Industry, other staff and subordinates listen to them, follow their instructions...learn from them.

In a kind of a Chinese culture company, most of the Top management likely intend to go for micro management, it is almost true for those who work for year and bring up the copmaby fro mlittle to Today decent size. They would not likely trust others who has been classied "New" in this company.

They manage everything, from hiring, organization fine tuning, Product development, shipment plan. Salary review, business direction, signing cheque of trivial value $100, and basically they manage everything no matter big or small. They work late, and work hard, they are busy and sometimes too busy to lose their business focus!

When they chair the meeting, they ask for comment and suggestion and all presented proposal will likely be dropped them all afterwards. Then the TG will present his priory prepare proposal and ask for comment! Naturally, everyone says “That is the best” and everyone will use it…So this is Chinese Democracy!?

In days, this kills all good ideas and the Top Management still thinks their idea is simply the BEST! New idea is not encouraged as a consequent result. No one would present a good idea to them as they know any good idea is not good enough. In turn, they would hide their suggestion and better try not to be too outstanding in order to keep the job! 

For some of the big firm that the founder started himself long time ago and grow to such sizable comonay if today. They will not trust the outsider and would pass the company it to their next of kin or son if they have... No Matter they are the kind of people who is able to run the business or not.. This is in fact limit the possibility for better growth of the comapny. Moreover, their influence is always there until the day they pass away, menaing that their way f business will not have take bold changes, organization structural changes or rely on hands of outsider. Most of the Chinese owner companies are having simialr pattern of business model. Those they are a lot of successful company, but not MNC!

In these kind of company, middle management team needs not to be high calibre people... Their. survival tools are “just to be obedient” and do not to be smart. The bottom layer of staff are a bunch of doers, workers, instruction followers only.

Pros... The company grow under such strong leader, since not new idea and the company can only make organic growth, they do not buy concept of M&A... so they company is usually diminishing into smaller in size. Seldom can grow to the scale of a Multi Billion Company.

Cons. There is hard to find successor or even not intend to bring up a successor, once the TM is retired, then has to hand over to a bunch of middle management team and the company would lose it glory gradually, eventually either go for chapter Eleven or being acquired by the competitors.

I did not address the topics., my point is, very rare for Chinese to run a sucessful MNC. We have not seen many example of sucessful one. Do we!?

MNC stands for Multi National Company

HK Snob

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