Day 9 - May 30th Wednesday (CEIBS)

CEIBS – Lydia J. Price, Professor of Marketing, Associate Dean

For companies to succeed, they need to have people that are well trained. The managers should be able to identify and utilize business opportunities, solve complicated business problems, develop organizations and moreover motivate people. This has been a challenge for companies in China. Local companies as well as global companies are fighting against each other to attract talent to their organizations. Business schools such as CEIBS play a vital role in the rapidly changing economy to train managers and fulfill the demand for business leaders.

CEIBS is a China-based leading international business school that focuses on the economic development of China by offering to MBA students, managers and senior executives of companies, current international management experience and trends. Prof. Price pointed out that there is a great opportunity in management training, project management, environmental sustainability experts, agricultural experts, and micro-finance projects. However, due to the shortage of supply of quality and well trained managers in these areas, companies are putting premiums over the current supply. This is causing the salaries to go up and managers are constantly being “poached” by competing companies.

Prof. Price also spoke about how the Chinese students traditionally resist taking on responsibilities, and lack decision-making skills. This comes from the hierarchical structure of their families or work-place. They do not feel comfortable to express their creative due to their upbringing. They are also less likely to express ideas that deviate away from the norm. This probably explains the behavior of some Chinese classmates in Babson who typically are soft-spoken and shy away from speaking in class. However, they interact animatedly when they are outside the class where their actions are not under anyone’s scanner.

Carrefour Supermarket

Due to the inflow of multinationals, the Chinese consumer is becoming more and more brand conscious. Companies are trying to woo their consumers by introducing new products where earlier a single product would work for years. When customers walk into retail stores, they know what brand they are looking for and are willing to spend an extra dollar to get quality and reliable products.

Maglev Train Ride

How can a visit to Shanghai be complete without the Maglev train ride? This train goes at a top speed of 431km/hr, but it does not seem to be going that fast when you are actually sitting in it. This train might seem practical, but there has been severe criticism over its need and purpose since its inception. The train ridership has been below expectations and the costs associated with its operations are very high. However, this is a great tourist attraction that will be very busy during the Olympics next year.

SunRise Duty Free - Fred

The super-fast train ride brought us straight into Pudong International Airport where we saw the Sunrise Duty Free Shops. These shops were not different from the duty free shops that we see at other airports. However, Fred, owner of these shops, was highly optimistic about acquiring future license to continue running these shops. I wonder if his bid was approved.

We proceeded to Ramada Hotel where Fred hosted a dinner and spoke about his life in USA and China. During his talk, Fred said that as a culture, Chinese are very money oriented. You need to pay people to get work done. For them, individual compensation trumps their team compensation followed by their yearly bonus. However, they are very loyal to their companies. The turnover rates are very low and employees have a sense of ownership to the companies they work in. He also reemphasized the point that Government contacts are very important. If one wants to be a successful entrepreneur in China, creating and maintaining contacts with people in the government will bring fewer hardships. Finally, as we have heard in several conferences and from numerous successful entrepreneurs, personal sacrifices are an important part to being an entrepreneur. If you want to be successful, be ready to undergo sacrifices at the personal, family, and social level.