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Learn the culture
May 7, 2008

Costs, time to market and intellectual-property protection are some of the normal considerations when thinking of an Asian market as a manufacturing source. But there are other ‘basic’ factors to consider.

Understanding the government human resources laws, culture, holiday restrictions and retention problems are key for building a professional staff in a low-cost country. See www.purchasing.com/article/CA6343472.html

Some countries teach English, but few have moved into providing graduates with practical English-language skills that apply to manufacturing and supply chain operations.

The idea of working and then starting your own company is popular, and rising housing costs are also factor in motivation and personnel management. People have not worked for 30years in major foreign corporations, and young people want to take a break after working a few years, a somewhat different philosophy than in the west. People want cars, want to invest in housing and want to buy stocks. Of course, occasionally markets drop and the value of investments falls, something unfamiliar to the Chinese. Your Chinese managers then get into financial problems or at least experience a new kind of stress. Recent major changes in the stock and housing markets have caused some new pressures on families and investments.

Maybe some corporate family finance planning and investment training is needed for your in-country managers and engineers. Many think they know what to do, but then it backfires and you have some unmotivated people or those looking suddenly for more money or another job.

Visiting family for holidays and helping targeted employees to get reasonably priced transportation is another type of benefit that is not normally looked at in western companies. These are the 'ground-level' tactics often necessary before you can accomplish grand strategic objectives.

Posted by Walter E. Buczynski on May 7, 2008 | Comments (0)



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