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She’s helped hundreds of people to achieve great leaps in their ability to communicate and lead and in their sense of personal confidence.":1,"#Incorporate more loving kindness in professional communications. We tend to reserve our compassion and love for personal correspondence and employ our stubborn, decisive energy for work, but your professional communications can benefit from more of your emotional awareness. Leaders must show their employees that they care about them, and not just their work. People are changed less by what people say than by how others make them feel. Before initiating intellectual communication, harness your powers of awareness and empathy, and prioritize deep connections with your presence.":1,"#It’s important to realize that effective communication isn’t only about what you say, it’s also about how well you listen. Allow for moments of silence that communication partners can fill. Be a sounding board for others to reveal what they perhaps aren’t explicitly saying. While pauses and silences in conversations can be uncomfortable, don’t shy away from them. Instead, welcome the communion these gaps of speech allow for.":1,"#Understand and harness the power of empathy. When you cultivate a sense of empathy, you’re opening yourself to feel the other person’s joy, pain, or pleasure. However, it’s important that you know yourself and maintain your integrity; you’ll risk getting lost in other people’s emotions if you haven’t developed a healthy and whole relationship with yourself.":1,"#Build communion by adjusting to others’ energy and communication styles. Mimic their tone, language, and gestures in an effort to synchronize your communication. You may begin to mirror one another’s approaches, which puts you in harmony within your conversation. Developing synchronicity in communication encourages trust, empathy, and a free flow of ideas.":1,"#Once you’ve become more aware and available in your own communications, it’s time to recognize those traits in others. Deepening communication relies on communion and the validation of what connects us all. It’s about seeing and being seen.":1,"#Enjoy Communion and the Emergence of Something New":1,"#Opening your mind to serendipities, coincidences, and synchronicities.":1,"#Catching your first response to people and situations before you form your impression into words.":1,"#Capturing your thoughts when you awake in the night or on first awakening in the morning by writing them down.":1,"#Giving yourself adequate space to pay attention, think, dream, and be.":1,"#In order to play and improvise in conversation, you must trust your intuition. It senses the right path and continually sends you signals and messages. Harness your intuitive power by connecting those signals in your body to the verbal language you’ll use in your communication. Intuition can seem illogical or coincidental, but it often arrives as a well-formed thought that gets to the truth of what you’re trying to communicate. You can develop your intuition by:":1,"#It’s important to recognize that creativity is attracted to delight. Consider the playfulness of children or the excitement and curiosity of experimenting. In communication, maintain a playful, curious energy with an anticipation of how something will turn out rather than an expectation of a certain result. When communication is fixed, there’s no room for inspiration, creativity, and miracles to break through. Don’t underestimate the power of improvisation. Repeating conversation patterns or rehearsing responses can hinder you from learning something new. You’ll gain more insight from allowing conversations to take new routes.":1,"#While it may seem counterintuitive, a successful approach to communication is to stop trying. Consider artists who describe having creative ideas as sudden experiences, a stroke of luck, or inspiration. Even some scientists describe the moments they were following their data but then stumbled across other developments, like Einstein and the theory of relativity. Just as creative thoughts often come out of nowhere, communication benefits from the nonlinear behavior of your right brain. Learn to take the nonlinear train of thought in conversation, exercising your imagination while exchanging unsolicited ideas with others. Let go of your own preconceived notion of how a conversation should go and instead follow where it flows.":1,"#Call Forth Creativity and Intuition":1,"#When we feel trust and safety in an exchange, we’re willing to relinquish control of the situation and make space for that deeper connection.":1,"#The goal of communication is about connection; it’s not always a match of intellectual prowess. Practice this wholehearted approach by leaning into the emotional truth of each moment of expression. Don’t delay the joy of an outcome or be driven by the fear of one; rather, remain present to all that arises. Being vulnerable is a powerful strategy in communication, as it enables a safe space for authentic and effective conversation.":1,"#Resist the tendency to set up conversations that are <em ljsid-1=\"\">either/or</em>. Conversations that are in a binary format are simple and easily controlled, but they lack the flexibility to develop more unique insights. Pursue staying in the flow by holding differing opinions as valid. Adopting a <em ljsid-3=\"\">both/and</em> approach helps you finds harmony between varying perspectives and often leads to the best conversations.":1,"#Once you accept your emotional availability, embrace the confusion and uncertainty that often follows. Don’t force answers. Listen and remain present to the discomfort of uncertainty to activate your right-brain response. Your presence in uncertainty unlocks wisdom, ignites spontaneity, releases insecurity, and liberates conversations to be more vibrant and impactful.":1,"#Your emotional availability is paramount to improving communication. You can deliver a speech with accuracy and detail, but unless you make an emotional connection, you won’t touch your audience and your communication will lose its power. Being <em ljsid-1=\"\">wholehearted</em> in a conversation means that you’re 100 percent available to the other person’s attention and energy. It involves paying attention to your gut feelings and intuitions and incorporating your emotions into your communication. You risk exhausting your message when there’s a disconnect between your mind, body, and heart. Trusting your own emotions ensures that others will trust you and your response. Remember that how you speak is just as important as what you say.":1,"#Be Wholehearted":1,"#However, don’t confuse the awareness of presence with thinking. Approach this awareness like a terminally ill patient who’s less concerned with making memories of a moment than with experiencing the fullness of it. Practice the absence of expectation by cultivating all your senses to observe and receive what the reality of a conversation has to offer.":1,"#You can achieve impactful communication and deeper connections by committing to being present. Presence allows your life force to take center stage and energize genuine conversations. Focus on what’s happening externally in the current moment—such as the sounds, smells, and sights—while remaining conscious of your internal state. Being present means detaching from the mistakes or patterns of the past and your fears of the future and allowing the spontaneity of the present moment to reveal what’s possible.":1,"#Be Spontaneous in the Moment":1,"#When you connect your breath to your words, you’re able to more organically communicate meaning. Advanced and effective communication depends on your ability to listen to the wisdom of your body.":1,"#Avoid draining the energy out of your conversations by staying present and maintaining the authentic awareness that fuels your life force. You can’t control your life force; you can only access it at the intersection of being alert and being relaxed. In sports, this is known as being “in the zone,” and you can discover it through practice, especially when it comes to your breath. Your breath centers and relaxes you, allowing the energy to flow freely through your body.":1,"#Communication that’s controlled and stifled lacks <em ljsid-1=\"\">life energy</em>, a vibrational broadcast that keeps conversations alive and dynamic. You access your life energy by paying attention to the sensations in your body. Start by acknowledging when you feel most energized (e.g., when exercising or listening to music), and focus on the effect it has on your state of mind. Understand that this life energy, which is enlivening, is not the same as manic energy, which is exhausting.":1,"#Be an Awakener":1,"#You need to strike a balance between the activities of both hemispheres. Your left brain generally dominates in professional, problem-solving settings, but you should also recognize and employ the principles of the right brain. To find this balance, it’s essential to remember that the left-brain accumulates and categorizes while the right brain unlearns and connects. This approach will unlock the power of <em ljsid-1=\"\">whole mind thinking</em>—that is, using both sides of your brain in much the same way that you use both eyes to see the same image with slightly different vantage points.":1,"#The way you experience the world around you is influenced by the way you observe it. The brain is divided into two hemispheres with two distinct roles. The left hemisphere is influential in gathering information, assigning definition, and creating categories. The right hemisphere is more open, insightful, and creative, and performs holistic tasks like creating meaning and connections. Another way to understand it is that the left brain makes sense of reality, while the right brain is sensing reality.":1,"#Whole Mind Thinking":1,"#The complexities of communication include the basics of language, content, rapport, emotional intelligence, and the indefinable element of intuition. It’s imperative to understand the difference between communicating effectively and communicating profoundly: The former is a skill or science; the latter is an art.":1,"#Part Three: The Alternative World of Real Communication":1,"#Relying on well-crafted statements, rehearsed talking points, and habitual agendas contribute to stagnant and predictable communication. While it may seem comforting to over-prepare your communications, you must break this habit of control and remain present to allow for authentic, organic, and unpredictable revelations.":1,"#Reacting with presuppositions.":1,"#Being pleasing and appeasing.":1,"#Competing to win.":1,"#Looking good.":1,"#Most people focus on maintaining control in all aspects of their communications. Control involves left-brain thinking, which is analytical and linear, and leaves little room for invention, spontaneity, and creativity. They filter their thoughts, reactions, and conversations through four main agendas:":1,"#Part Two: Opting for Control":1,"#Consider for a moment the trends and impact of reality TV programs in today’s media landscape. From entertainment to politics, there’s a persistent demand for “real” personalities and communication that’s genuine, spontaneous, and unpredictable. These personalities welcome spontaneity by remaining open and genuine with their responses, and they’re often rewarded with more and greater attention. Though prepared speech can be entertaining and informative, spontaneous expression is more alive and open and resonates with people on a deeper level. You can accumulate as much information as possible and then craft an impeccable speech or response, but it’s just as important to embrace spontaneity in your professional communication. The best way to prepare for these spontaneous, unpredictable moments is to cultivate presence.":1,"#Understanding the role that communion and validation play in developing stronger and more impactful connections.":1,"#Practicing a wholehearted approach to conveying your meaning, which involves connecting your mind, body, and spirit.":1,"#Embracing spontaneity, vulnerability, and even silence.":1,"#Employing more right-brain activity to achieve balance.":1,"#Abandoning the need to control your interactions.":1,"#Professional communication often involves preparation, practice, and agendas, which can result in formal, inauthentic conversations. You can improve and enrich your communications by:":1,"#Clicking this link will redirect to relevant products for the Author Judy Apps.":1,"#Most employees want to learn, experiment, and grow in their roles. In Build an A-Team, Whitney Johnson illustrates how managers can build on those desires to fuel their employee’ growth and help their teams achieve their goals, all while boosting morale and productivity. The secret is in job design: Create roles that are built around your employees’ skills and help them progress along their learning curves to find new planes of success. Encouraging your employees to leap to new challenges will help your team thrive and motivate your employees to pursue their careers goals confidently.":1,"#build-an-a-team":1,"#<strong ljsid-0=\"\">Johnson</strong> is also the author of Dare, Dream, Do, a frequent contributor to <em ljsid-2=\"\">Harvard Business Review</em>, a LinkedIn Influencer, and host of the <em ljsid-4=\"\">Disrupt Yourself</em> podcast. She is a member of the original cohort of Marshall Goldsmith’s 100 Coaches. She is cofounder with Clayton Christensen of the Disruptive Innovation Fund, and was an <em ljsid-6=\"\">Institutional Investor</em>-ranked equity research analyst for eight consecutive years, and was rated by Starmine as a superior stock picker.":1,"#<strong ljsid-0=\"\">Whitney Johnson</strong>’s research and work in disruptive innovation shapes how individuals and corporations manage change. After publishing <em ljsid-2=\"\">Disrupt Yourself: Putting the Power of Disruptive Innovation to Work</em>, Johnson was recognized as one of the world’s 50 most influential management thinkers by Thinkers50 in 2015 and again in 2017. Through speaking, writing, coaching, and consulting, she synthesizes the key levers of change and shares how to use them effectively.":1,"#Think creatively about how you can help your employees advance and grow. Support their attempts to disrupt so they can play up to their strengths, reengage in their work, and continue moving up their learning curves to new levels of success.":1,"#Some employees, particularly those approaching retirement age, may not find other curves they want to pursue within the organization. These experienced employees may benefit from mentorship opportunities that would allow them to share their expertise, or they may enhance their abilities to contribute when you allow them to work on a flexible schedule, work reduced hours, or work remotely. Flexibility can be a great motivator, allowing these employees to pursue noncareer objectives while continuing to provide high-value work to your organization.":1,"#New learning curves will propel your employees’ career momentum, but you might also encourage lateral—or even backward—moves, to help them reach their goals. These sidesteps and backsteps can equip your employees with the experience, skills, and knowledge they need to achieve their future goals.":1,"#<strong ljsid-0=\"\"><em ljsid-0-0=\"\">D</em></strong><em ljsid-1=\"\">elivering</em> on your promise to help them jump.":1,"#<strong ljsid-0=\"\"><em ljsid-0-0=\"\">I</em></strong><em ljsid-1=\"\">dentifying</em> new learning curves for them to pursue.":1,"#<strong ljsid-0=\"\"><em ljsid-0-0=\"\">A</em></strong><em ljsid-1=\"\">pplauding</em> their achievements.":1,"#Make a plan to meet with your high-performing employees and help them determine their next moves. Use the data you’ve gathered and analyzed to calibrate their performances and bolster their odds of success, then come to their <em ljsid-1=\"\">AID</em> by:":1,"#Helping People Leap to New Learning Curves":1,"#For some, work may remain uninteresting. Those employees may hold fast to their complacency and comfort and feel threatened by any challenge or change. When this occurs, make expectations and rules clear, discuss instances of poor performance, and let them feel the risk of failure to encourage them to reengage and pursue new challenges with a renewed focus.":1,"#Some of your seasoned team members, or team <em ljsid-1=\"\">masters</em>, will reach the pinnacle of their learning curves and may express a desire to take on new work, whether within their roles, the larger organization, or elsewhere. They might also adopt a fundamentally different approach to their work, becoming less driven and leaning too heavily on past successes. Leaps to new curves may be on the horizon, but you can help your employees make the most of the time they spend on your team by finding opportunities for them to contribute. These masters can benefit by sharing their competency with others, helping low-end performers to improve, passing on the knowledge that they’ve gained, and encouraging others to take leaps.":1,"#Managing Masters":1,"#Instead of adding complexity to their roles, you may keep your top-performing employees engaged by taking things away. When you impose the right constraints, whether they are limits to time, minuscule budgets, barriers to high-level expertise, or barriers to obtaining buy-in from decision makers, you can help them to think creatively, grow within their roles, and jump to new S curves that can fuel their engagement, motivation, and momentum.":1,"#Stretch assignments create the friction needed for your team to maintain or accelerate their momentum. Many employees who are comfortable with the everyday aspects of their roles will rise to new business challenges and do what it takes to avoid failure. In fact, studies show that 67 percent of people will demonstrate above-average creativity when presented with a challenge, which is double the percentage of people who show creativity in nonchallenging roles.":1,"#Your team will be most effective when 70 percent of the members are working in the “sweet spot” of their learning curves. Give your experienced team members <em ljsid-1=\"\">stretch assignments</em> and artificial constraints to help them grow, think creatively, and innovate.":1,"#Playing to Their Strengths":1,"#If your new hire’s potential is evident, help him or her feel safe in exploring this new curve of growth. Your disapproval will weigh heavily, and it can impact the person’s progress and quality of work.":1,"#You and your employee can then establish a plan for mutual success that should last until the new hire is ready to jump to a new S curve. Build your plan by mapping out the first six months of the role. Set short-term goals with clearly defined budgets and deadlines, help the employee build his or her internal network, and guide the person toward those who can serve as mentors. After six months, evaluate the progress of your new hire. Remember that the employee is on the low end of his or her S curve and that growth in this phase can be slow; however, it’s important to determine whether the work is playing to your new hire’s strengths and whether the new hire is gaining momentum that may soon fuel an upward trajectory.":1,"#Hone your vision of how you’d like your employee to contribute and develop in the role.":1,"#Learn why your new employee came to work for you.":1,"#Communicate your vision of your organization and team.":1,"#You can onboard your new hire successfully by taking a three-step approach:":1,"#Managing the Hungry New Hire":1,"#<em ljsid-0=\"\">Boomerang employees</em> who once worked for your organization or team and want to return with newly honed sets of skills.":1,"#Returning military personnel.":1,"#People who took a break from full-time careers and are looking to return to the workforce.":1,"#Internal employees who want to try something new.":1,"#Be unconventional in your recruiting and hiring practices. Look for candidates in places where other firms are unwilling to consider. You may find candidates with enormous levels of potential when you consider:":1,"#As you begin to recruit for your A-team, think of people in terms of their S curves. Consider the potential in each person you interview rather than the person’s ability to be proficient in a given role. This approach will allow you to maximize the period of high engagement the selected hire will have in the role.":1,"#Recruiting and Hiring":1,"#<em ljsid-0=\"\">Encourage discovery-driven growth.</em> Determine what your employees want to accomplish and how you can make it happen. Track their progress; optimize their roles to suit their strengths, goals, and team needs; and course correct as necessary.":1,"#<em ljsid-0=\"\">Give failure its due.</em> Allow your employees to take on challenges, even if they’re uncomfortable. Support them through their failures, and encourage them to keep trying.":1,"#<em ljsid-0=\"\">Step backward to move forward.</em> Show your employees the opportunities that may be available to them by taking a step backward or sideways. Pursuing new levels of education or role-based opportunities can help propel them further ahead.":1,"#<em ljsid-0=\"\">Fight entitlement at every turn.</em> Confront the entitlement you see in yourself and in your employees. Contend with your own entitlement by helping high performers grow and move on rather than stockpiling them and rationing their talent. Mitigate the entitlement of your team by providing them with a balance of thoughtful praise and useful criticism.":1,"#<em ljsid-0=\"\">Impose thoughtful constraints.</em> Implement constraints to improve your employees’ individual and collective performances. Give them three to six months to learn the details of their roles, three to four years to make contributions, and three to six months to help others get up to speed before moving on to new challenges.":1,"#<em ljsid-0=\"\">Play to individuals’ distinctive strengths.</em> Help your employees recognize what they do well and which problems they’re equipped to solve. Match their strengths with critical assignments so they can break through the challenging low end of the S curve.":1,"#<em ljsid-0=\"\">Identify the right risks.</em> Instead of focusing on competitive risks, like head-to-head competition for a narrowly defined role, shift your attention to market risk and become a talent developer. Consider how you can use your employees to meet the needs of the team or business, and deploy them into new arenas that are tailor-made for their expertise.":1,"#Your employees’ desire to change and grow must come from within, but you can help accelerate their learning and growth in seven critical ways:":1,"#The Seven Accelerants of Learning and Growth":1,"#Everyone has an S curve, including the least engaged members of your team. In your role as a manager, recognize that nearly all of your employees long for growth opportunities, and if they can’t identify those opportunities or feel unsupported in their pursuits, they’ll grow away from the company. Therefore, it’s important to harness your team’s energy at the right time—and be prepared to do it again and again.":1,"#The S-curve model has another useful application in learning. Career-minded professionals and managers can use their concept to plan and understand their career developments and disruptions. At the low end of the S curve, people tend to find themselves in a slog: They put in huge efforts, but their work fails to yield comparative results. As they dedicate their time to practice, their progress speeds up, and they move up the S curve. Their confidence and competence build, and they feel exhilarated by their work. This progress leads to task mastery, and at this stage, tasks become easier to execute. Boredom may set in as the feel-good effects of learning begin to dissipate. When this occurs, employees need an impetus to fuel future growth which, often comes from change or the introduction of new challenges.":1,"#The S-curve model has another useful application in learning. Career-minded professionals and managers can use their concept to plan and understand their career developments and...":1,"#In its traditional sense, the <em ljsid-1=\"\">S curve</em> is a concept used to gauge how quickly an innovation will be adopted and penetrate a market. It adds an element of predictability to the unpredictable because progress tends to form an S-shaped curve: Progress starts relatively slowly until a tipping point is reached, then growth occurs at hyper speed until the market is saturated by the innovation. When this occurs, growth slows once again.":1,"#The S Curve of Learning":1,"#<em ljsid-0=\"\">Encouraging discovery-driven growth. </em>Consider what your employees want to accomplish and how you can make it happen. Track their progress, optimize their roles to reflect their skills, and course correct as needed.":1,"#<em ljsid-0=\"\">Giving failure its due. </em>Encourage your employees to take on challenges, support them through their missteps, and embolden them to keep trying.":1,"#<em ljsid-0=\"\">Stepping backward to move forward.</em> Consider whether your employees could benefit from taking a step backward or sideways. Alternate routes to their goals may help them gain new skills and experiences that can propel them further ahead.":1,"#<em ljsid-0=\"\">Fighting entitlement at every turn.</em> Mitigate the entitlement of your team by offering the right balance of praise and criticism.":1,"#<em ljsid-0=\"\">Imposing thoughtful constraints.</em> Implement artificial constraints of time, budget, expertise, and buy-in to help your employees grow, think creatively, and innovate.":1,"#<em ljsid-0=\"\">Playing to their distinctive strengths. </em>Help your employees recognize what they do well, and give them critical assignments that align with their strengths and abilities.":1,"#<em ljsid-0=\"\">Becoming a talent developer. </em>Determine how you can harness your employees to meet the needs of your team or business, and deploy them into new arenas that are tailor-made for their expertise.":1,"#Fuel your employees’ engagement and motivation by helping them to move up their learning curves. You can support their progress by:":1,"#Most employees want to learn, experiment, and grow in their roles. In <strong ljsid-1=\"\">Build an A-Team</strong>, Whitney Johnson illustrates how managers can build on those desires to fuel their employees’ growth and help their teams achieve their goals, all while boosting morale and productivity. The secret is in job design: Create roles that are built around your employees’ skills and help them progress along their learning curves to find new planes of success. Encouraging your employees to leap to new challenges will help your team thrive and motivate your employees to pursue their careers goals confidently.":1,"#©2018 by Whitney Johnson":1,"#Play to Their Strengths and Lead Them Up the Learning Curve":1,"#Whitney Johnson":1,"#Build an A-Team":1,"#<strong ljsid-0=\"\">Michael J. Dunne</strong> is President of Dunne & Company Ltd., a Hong Kong-based investment advisory firm specializing in Asia's car markets.":1,"#american-wheels-chinese-roads":1,"#A native of Detroit, Michael speaks Chinese and Thai. He worked in Beijing and Shanghai during the 1990s and 2000s and currently divides his time between China and Jakarta, Indonesia, where he lives with his wife, Merlien, and their three children.":1,"#Michael's opinions have been published in the <em ljsid-1=\"\">Wall Street Journal</em>, <em ljsid-3=\"\">International Herald Tribune</em>, and <em ljsid-5=\"\">Automotive News</em>. He was also featured in an acclaimed <em ljsid-7=\"\">National Geographic</em> documentary on China's car culture.":1,"#Three weeks after earning an MBA from the University of Michigan in the summer of 1990, Michael boarded a flight to Asia. He soon founded Automotive Resources Asia (ARA), a car consultancy. ARA expanded operations in China and Southeast Asia over the next decade and, in 2006, was acquired by J.D. Power and Associates.":1,"#By Ted Plafker":1,"#How to Profit in the World's Fastest Growing Market":1,"#Doing Business in China":1,"#www.wiley.com":1,"#The road to survival and success in China is arduous and long, Dunne reminds us, and it still begins with a license and a partner. Once a company has these, it is still competing with both the house and the player--the ones making the rules are also playing the game.":1,"#As of mid-2010, Shanghai GM was contributing roughly 30 percent of GM's worldwide profits and was on its way to selling one million vehicles for the year. SAIC-GM-Wuling was also on target for one million sales. While the profits are there, GM is increasingly in the role of a shareholder, not a \"key driver of the business,\" Dunne observes. Can GM remain a useful partner to the Chinese? Dunne asks this question.":1,"#Might electric cars be the future for China? This would address China's concern about energy use and the amount of oil it imports. In addition, China would not be playing technology catchup, but might actually be able to leap out in front of other automakers. A number of efforts, including an investment by Warren Buffett's Berkshire Hathaway, are under way to develop electric car technology in China.":1,"#As for GM, Dunne suggests that GM may have put itself out in front of other foreign car makers operating in China. No other automaker has ceded control of a partnership as GM has done. In addition, Shanghai GM has launched a completely Chinese car--the Chevrolet New Sail--wholly designed by Chinese engineers. The intellectual property belongs to Shanghai GM and another joint venture. GM is being paid only to license the use of the Chevrolet brand. And while foreign partners have as a rule blocked exports, the New Sail is being exported to Chile and other countries. Shanghai GM's declining number of non-Chinese personnel is another indicator of change in the wind. These expert workers--international service personnel (ISP) in GM parlance--are expensive to employ in China. Joint ventures annually negotiate about the right number of \"imported experts.\" As a joint venture gains traction, the number of ISPs should decrease, and this is happening at Shanghai GM. As of 2010, ISPs were less than one-half of one percent of the workforce.":1,"#What happens next in China's automotive industry, and what does the future hold for GM in China? China has always been open about its automotive strategy: partner up with foreign companies, absorb the technology, and then make cars on its own. Thus far, China has built the partnerships, but the partnerships have mainly produced and sold already-designed cars from Japan, Europe, America, and Korea. The large profits China has earned in so doing--and sizable salaries of some employees--may have encouraged the Chinese to stop at this step. In addition, foreign partners have been reluctant to cede technology. Ironically, the three top-selling domestic car brands--Chery, Geely, and BYD--are all made by independent companies operating outside of the central government's partnership plan.":1,"#THE END OF THE BEGINNING":1,"#The U.S. financial crisis reached the Chinese car market in 2008. Sales dipped, but recovered to 8.3 million units in 2009. GM needed the rebound. By 2009, GM had filed for bankruptcy in the United States and was seeking to sell Opel in Europe. As luck would have it, GM also faced foreign exchange losses and a cash flow crunch at GMDAT. The Korean Development Bank provided limited help to GMDAT while SAIC refused to help. But late in 2009, GM made three surprising announcements. First, Opel was no longer for sale. Second, GM was injecting $491 million into GMDAT to recapitalize the company. And third, GM was ceding control of Shanghai GM to its Chinese partner, boosting SAIC's share to 51 percent. The final announcement was startling. No foreign car company had ever willingly given up control to its Chinese partner. The announcement did note that GM had been able to \"achieve some funding\" from Chinese banks that it \"would have been difficult to do on our own.\" Any link between the equity sale and aid to GMDAT and Opel was never acknowledged.":1,"#The next few years saw amazing growth. The Chinese car market soared from 3.6 million sales in 2005 to 10.5 million in 2009, surpassing the United States as the world's largest car market. Some 90 percent of sales still settled in cash. With the Buick, Chevrolet, and Cadillac brands doing well, Kevin Wale focused on SAIC-GM-Wuling, a joint venture established by SAIC and GM in southern China in 2002 to build micro vans and micro trucks. Small cars and trucks, powered by engines comparable to U.S. motorcycle engines, were being used to transport people and goods all over the Chinese countryside. It was a promising new market for GM. Wuling was already making the small vehicles at a profit--something GM had not thought possible. Wale added a redesigned engine and a new plant. By 2008, Wuling was churning out 600,000 miniature vans and trucks per year. The most popular vehicle was the Sunshine, a boxy minivan shorter than a VW Beetle and designed to reliably carry five or six people. As had become GM's practice, the intellectual property for the new Wuling engine was maintained at GMDAT. GMDAT had become a key component of GM's success in China.":1,"#FAST GROWTH AND ABRUPT CHANGE":1,"#The surging sales brought to an end Detroit's hands-off approach to GM China. GM proceeded to \"get its arms around China,\" appointing a new head for GM Asia-Pacific and moving the headquarters of GM Asia-Pacific from Singapore to Shanghai. A new joint venture was set up to lend to Chinese car buyers, and the Cadillac brand was introduced. Early in 2005, apparently having had enough of his superiors' tighter control and second-guessing, Murtaugh resigned from GM. He was quickly replaced by Kevin Wale, an Australian.":1,"#Despite the Chery surprise, Shanghai GM found that the link with GMDAT worked well. The Buick Excelle was immediately popular, and the Chevy Spark sold well despite the Chery competition. The Chinese still considered the Buick to be an \"American\" car despite the Korean design, engineering, and manufacture, and the Buick brand continued to carry cache in the marketplace. GM knew now to give special attention to engine size as well as the look and feel of a car's interior. The Buick Century, restyled and renamed the Regal, was given a smaller engine. From a level of just 30,000 units in 2000, Shanghai GM sales rose to 204,000 in 2003 and 267,000 in 2004.":1,"#As it happened, Daewoo products entered China sooner than GM had anticipated. Chery Automobile, a small state enterprise not partnered with a foreign company, introduced the Chery QQ at the Shanghai Auto Show in the spring of 2003. The Chery QQ was an exact copy of the Chevrolet Spark that Shanghai GM planned to launch six months later at a price 20 percent higher! Though unconfirmed, it is thought that Chery legally acquired the drawings for the QQ from a Taiwan broker at a time when Daewoo was in court receivership prior to the GM sale.":1,"#The Buick Sail achieved 26,500 sales in 2001, enough to assuage the concerns of dealers, but still a \"temporary bandage,\" says Dunne. Shanghai GM desperately needed a standard way of designing and building affordable small cars appealing to the Chinese. The answer was found in Korea. In April 2002 GM acquired the best assets of Daewoo, a small Korean car company that had gone bankrupt. With three minority partners, including SAIC, GM set up the GM Daewoo Automotive Technology Company, GMDAT for short. GMDAT would design and engineer smaller cars for the Korean market, for export worldwide, and for assembly at Shanghai GM. As a shareholder, SAIC would earn profits from the Korean operation, but intellectual property rights and \"source profits\" from the selling of parts would remain with GMDAT, where GM was the majority shareholder.":1,"#Adding a smaller, more affordable car was not easy to do. In North America, GM had turned away from the small car in favor of larger, more profitable vehicles. Even small Chevrolets used too much gasoline and were too costly for the Chinese market. The best possibility was the Corsa, a car designed and developed by Opel, GM's German subsidiary. But if it was the Corsa, what should it be called? Should it bear the Opel name (as the German subsidiary wanted in order to introduce Opel to China), the Chevrolet name (which would be in keeping with the idea that Chevrolet was GM's middle class brand), or a Buick name, which would maintain name consistency for the Shanghai GM product, but might call into question Buick's image of exclusivity and power in China? Considering what would be best for Shanghai GM, Murtaugh decided that the car would be a Buick, the Buick Sail.":1,"#By the time the Buick Century was launched in late 1998, Shanghai GM faced competition not only from the Passat but also from the Honda Accord, which was being produced at a factory Honda had acquired earlier in 1998 when a Peugeot joint venture filed for bankruptcy. Aided by government orders, Shanghai GM sold 20,000 Buicks in 1999 and 30,000 in 2000, but the Buick was being dramatically outsold by the Accord and the Passat. It appeared that Chinese buyers loved the prestige of the Buick but viewed it as a gas guzzler. Its 3-liter, V-6 engine could not compete for gas mileage with the 2-liter, 4-cylinder Passat and Accord. Acceleration and passing power did not matter as much to Chinese drivers as gas consumption. To be competitive, Shanghai GM needed to \"fix\" the Buick Century or add to its lineup a smaller, more affordable car. Buick dealerships--a promising innovation of Shanghai GM--were making it clear that more volume was needed in order for them to be able to operate profitably.":1,"#MAKING THE \"RIGHT\" CAR FOR CHINESE MARKETS":1,"#GM got an early lesson in the pitfalls of doing business in China. After spending five years winning the right to be the exclusive producer of large cars in China, GM learned that this exclusivity was not going to happen. Without identifying the Passat by name but merely calling it the B5, Shanghai Volkswagen, with the approval of SAIC, successfully eased the Passat through the Chinese approvals process. With luxury features but a slightly smaller engine, the Passat would be major competition for the Buick Century. When you have two sons, said one SAIC executive, you cannot give something to one son without allowing the same for the other.":1,"#As of January 1996, Philip Murtaugh had been named general manager of GM's Shanghai operations. He received ample advice, direction, and instruction from GM senior executives. But Murtaugh set the tone for the new operation when he met with his SAIC counterpart and developed a set of four basic principles for Shanghai GM. The first three were fairly standard: study and learn from one another, be flexible in thinking and acting, and maintain high quality standards. The fourth principle was \"Shanghai GM,\" the name of the company itself. It meant that employees were to put Shanghai GM first, above SAIC and above GM. The principle would serve the new venture well and aid in difficult negotiations over the years. In March 1997, GM Chairman Jack Smith arrived in China to sign the joint venture agreements, and the largest automotive deal ever completed in China was a reality.":1,"#On another occasion at Beijing Jeep, the Chinese employed exceptional tactics. It was agreed that Chrysler's equity in the joint venture would be raised from 38 percent to 41 percent in return for Chrysler's bringing over from Detroit a set of eight stamping machines for the use of Beijing Jeep. But when would the equity increase take effect? The Chinese sought to delay it as long as possible. The increase would be effective only after the presses were installed and working. A Chinese ship would go to Detroit to pick up the presses. Day laborers with hand tools would dig the hole to lay the foundation for installing the new equipment. The goal of delaying the increased dividends to Chrysler was clearly more important than installing the presses and increasing the profits for everyone.":1,"#With the partnership now official, negotiations turned to developing a business plan and dividing up the money of the new joint venture, Shanghai GM. The two partners in a 50/50 automotive joint venture, as was Shanghai GM, are equal, and yet they are not. Coming between them is the \"kit price,\" the price that the joint venture pays to the U.S. partner for the \"knock-down kit,\" the set of car parts made in a U.S. factory and shipped to China for assembly. All other money is divided up according to the equity shares, but any profit on the kits--any excess of what the joint venture pays above the cost of producing the kit--is exclusively the U.S. partner's profit. GM would thus favor a higher kit price, while SAIC would prefer to keep the price down.":1,"#NEGOTIATING AND SIGNING THE DEAL":1,"#In March 1995, SAIC informed GM that it had won the bidding and would be SAIC's new partner. The decision would be official just as soon as the central government signed off on it. Beijing's approval came six months later.":1,"#Between mid-1993 and March 1995, SAIC officials visited Detroit frequently, traveling around the city in \"China vans\" lent to them by Ford and GM. They would spend half their time in Detroit with the GM people and then travel to Dearborn to visit with Ford. It was thought that SAIC had a preference for partnering with GM, the world's number one automaker, but GM still needed to come up with a better deal than Ford and to suggest an acceptable car for the joint venture to manufacture. SAIC rejected both a Chevy--Chevrolet being GM's lead brand for international markets--and the Cadillac. What SAIC really wanted, GM eventually learned, was the Buick, a car viewed in America as \"an old folks' car.\" With some adjustments in back seat room and engine size, the Buick Century was settled upon as GM's proposed car.":1,"#SAIC officials knew better than to negotiate solely with GM about a new partnership. They invited Ford to bid as well, setting up a heated competition. At the time, it was not yet clear that the Chinese auto market--particularly the new luxury segment that SAIC wanted to develop--was worth fighting over. True, there would be annual orders from the government, but the idea of a domestically built luxury car was just a concept, and not all central government planners were in favor of it. Initially, SAIC found it useful to say that the new joint venture was for the purposes of building a \"minivan.\" Only later did SAIC officials make it clear that what they really had in mind was a large sedan.":1,"#The deluge of foreign imports troubled Shanghai city officials. As a first step, they declared that all government agencies and state enterprises owned by the municipality must buy cars built in Shanghai. But they wanted to go further. Why not end the import problem by building good, modern cars in China, and why not build these cars in Shanghai itself? In a roundabout fashion, using a young Chinese-born engineer then working at a GM facility in Michigan as a go-between, the chairman of SAIC obtained permission from the Beijing central government for SAIC to set up a second joint car venture. The chairman then sent a formal letter to the junior engineer inquiring about GM's interest in bidding for the new joint venture. Thus was born the initiative that would allow GM to build a significant presence in China.":1,"#Eventually, concerned about the public's perception of government employees riding around in the back seats of imported luxury vehicles, the central government ended the duty-free import provision for foreign joint ventures. But Chinese innovation took over. It is a Chinese adage that \"the top makes the policy, and the bottom takes countermeasures.\" To meet the new policy that cars must be assembled in China, import companies identified small state enterprises, many of them obsolete and idle, and offered to purchase the rights to their name. A molded plastic logo sticker of the name was created. The import firms then placed two separate orders from the Japanese companies, one for cars minus their wheels and tires, and a second for the wheels and tires. The \"assembly\" took place in China, and a logo sticker was affixed to the car, acknowledging its assembly.":1,"#There were two main channels for these imports. First, foreign joint ventures could import cars duty-free as a way to maintain investor enthusiasm for doing business in China; there would be no antiquated Chinese cars for these buyers. Second, there was the practice of \"water goods.\" Specially designed speedboats smuggled in Japanese and German cars in a process that likely involved participation from customs officials and the local police.":1,"#By 1992, there was an interesting anomaly in China's major cities: thousands and thousands of imported Japanese cars were driving the streets, despite China's opposition to car imports, shown by a hefty 150 percent duty on imports. The cars were coming into China via Hong Kong and Dunne asserts that the authorities knew about this import business--and were in on the action.":1,"#GM made its first foray into the Chinese car market in 1992. It was a decidedly unsuccessful joint venture to build S-10 pickup trucks in the rather poor city of Shenyang. The S-10 was the wrong product at the wrong time. Chinese workers could not afford the relatively expensive truck and did not actually even need it. It was especially too expensive for buyers in Shenyang, and the buy-local mandate kept away potential buyers in other cities.":1,"#The Kit Price":1,"#Despite these rules, China assures foreign companies that it genuinely wants and welcomes their investment.":1,"#Approval of the central government is required before the partnership can be formed and before any new model can be produced by the joint venture.":1,"#The foreign ownership share cannot exceed 50 percent.":1,"#The company must first form a joint venture with a Chinese partner.":1,"#China has in place tough rules for any foreign car maker interested in producing cars in China:":1,"#As of 1991, the city of Shanghai owned and operated the Shanghai Automotive Industry Corporation (SAIC). SAIC was successfully partnering with Volkswagen in the operation of Shanghai Volkswagen. Besides Volkswagen, only Citroën, Chrysler, and Peugeot were also producing cars in partnership with Chinese companies. GM had not yet broken into the market and had expressed no great interest in doing so.":1,"#The Chinese economy is notable for the extent to which central government planners have allowed economic and political power to devolve to the cities, particularly when it comes to the automotive industry. City governments have become major centers of economic power. The country actually has six major \"Detroits\" and several minor ones, says Dunne, and there is fierce competition among them. Car-building cities act almost like sovereign countries, seeking to \"export\" their cars to other cities, and trying to restrict local buyers to buying locally.":1,"#Many Detroits":1,"#In the summer of 2010, the producers of 60 Minutes wanted to do a story about how General Motors had managed to thrive in China while the rest of the company had entered into bankruptcy. It would have been a good story, but GM executives refused. Viewers would have learned that every business initiative in China begins with a license, that to get a license in the car industry you must have a Chinese partner, and that these Chinese partners are usually a major municipality or even the central government itself. In addition, viewers would have learned that there are more car brands produced in China today than in any other market in the world, including the United States. And one startling fact would have stood out: GM's success in China ultimately depends on the goodwill of its local partner, an entity owned by the City of Shanghai and controlled by Shanghai city government officials. These government officials ultimately report to the Chinese Communist Party. Thus, a key aspect of GM's success in China is its implicit alignment with the Chinese Communist Party.":1,"#DEVELOPING THE OPPORTUNITY":1,"#Michael Dunne is an American businessman with over 20 years of experience working in China in the automotive industry, initially as an industry consultant and more recently as an investment advisor. In <strong ljsid-1=\"\">American Wheels, Chinese Roads</strong>, he puts his experience to work, telling the story of General Motors' early years in China. He explains the rules of the road for doing business in China, providing colorful examples and anecdotes from Chrysler Jeep as well as GM. Dunne describes the importance of luck and licenses, the central role of joint ventures, and the enormous power of China's city governments, which function almost like sovereign countries.":1,"#Michael Dunne is an American businessman with over 20 years of experience working in China in the automotive industry, initially as an industry consultant and more recently as an investment advisor. In <strong ljsid-1=\"\">American Wheels, Chinese Roads</strong>, he puts his experience to work, telling the story of General Motors' early years in China. He explains the rules of the road for doing business in China, providing colorful examples and anecdotes from Chrysler Jeep as well as GM. Dunne describes the importance of luck and licenses, the central role of joint ventures, and the enormous power of China's city governments, which function...":1,"#<em ljsid-0=\"\">Surprises:</em> The unexpected is a way of life for foreign companies doing business in China.":1,"#<em ljsid-0=\"\">Business tactics:</em> The Chinese sometimes employ strange business tactics: delaying, obfuscating, asking rhetorical questions, and simply being unavailable.":1,"#<em ljsid-0=\"\">Naming:</em> A neutral or nondescriptive name may help a product or proposal move through the official approvals process.":1,"#<em ljsid-0=\"\">Source profits:</em> A foreign company in an automotive joint venture makes \"source profits\" by selling \"knock-down kits\" to the joint venture. The kit contains car parts ready for assembly in China.":1,"#<em ljsid-0=\"\">City government:</em> The central government of China has allowed substantial power to devolve to city governments which compete with one another.":1,"#<em ljsid-0=\"\">Chinese capitalism:</em> China's economy has been described as partly a command economy and partly unfettered capitalism.":1,"#<em ljsid-0=\"\">Joint venture:</em> All foreign companies making cars in China must do so in a joint venture with a Chinese partner. The Chinese partner must have at least 50 percent equity.":1,"#<em ljsid-0=\"\">License:</em> China requires a license for most business activities.":1,"#<strong ljsid-0=\"\">American Wheels, Chinese Roads</strong> has widespread appeal. The author writes in an engaging style, painting vivid images and often building suspense from one chapter to the next. Both entertaining and educational, the book is not only a description of General Motor's entry into China but also an excellent introduction to the ways of doing business in China in general. Both general-interest readers and readers wanting specifically to better understand General Motors and the Chinese automotive industry will find the book worth reading. A center section includes color photos, charts, and a map showing China's top ten automotive centers. The book is best read from cover to cover, but it is easy enough to read for a while, put the book down, and then go back to it.":1,"#©2011 by John Wiley & Sons, Inc.":1,"#by Michael J. Dunne":1,"#Clicking this link will redirect to relevant products for the Author Michael J. Dunne.":1,"#2311 Results found for <span ljsid-1=\"\">\"Article\"</span>":1,"#emerging-markets-1":1,"#<strong ljsid-0=\"\">Emerging Markets </strong>introduces strategies that companies can use to build their competitiveness in the global value chain. Professor Robert Grosse uses extensive research and in-depth case studies to illustrate how companies can more effectively allocate their resources, reduce their costs, and understand their risks and rewards as they successfully enter emerging markets. Because the chapters build upon one another, the book should be read in order. Figures, tables, examples, notes, references, and a glossary enhance the reader’s understanding of the text.":1,"#Estimated Reading Time: 4–5 hours, 272 pages":1,"#Features of the Book":1,"#Whether they are producing state-owned companies, family-based enterprises, or small businesses, emerging markets pose opportunities for traditional-market companies. Emerging-market economies will be the main source of growth this century, so strong leaders of traditional-market companies should use their strategies to compete in the global value chain.":1,"#<em ljsid-0=\"\">Small enterprises.</em> Small companies are the most numerous in any country. Small emerging-market companies must find their places in the global value-added chain and become global leaders.":1,"#<em ljsid-0=\"\">Family-based companies.</em> Diversified business groups (often composed of family owners) are common among nongovernment-owned companies in emerging markets. As family-based companies expand overseas, they must understand how they fit into the global value-added chain and develop competitive strategies in innovation and marketing.":1,"#<em ljsid-0=\"\">State-owned companies.</em> The largest companies from emerging markets are government owned or controlled. As they expand overseas, they become an increasing factor in international business. State-owned companies tend to operate in oil and banking—sectors that are sensitive topics of government concern—so relationships between home and host country governments play larger roles in company activities.":1,"#There are three major categories of emerging-market multinational companies that traditional-market companies must pay attention to:":1,"#Companies":1,"#Companies based in traditional markets have greater abilities to generate technology advantages based on research and development to create new products, services, and processes. Innovation is an important competitive advantage, so emerging-market firms must develop ways to innovate that are different from those in traditional-market economies, such as focusing on service sectors. This will make nonpatented innovation an increasingly greater part of total innovative activity around the globe, and it will open doors of opportunity for emerging-market firms to build competitive advantages in services.":1,"#With low-cost production and protected domestic markets, many emerging-market companies are positioned to compete against foreign multinational enterprises in domestic and overseas markets. The companies based in these countries have a competitive advantage in knowledge about their local markets, but traditional-market companies still dominate in innovation.":1,"#Innovations":1,"#Some emerging-market companies depend heavily on strategic alliances with their traditional-market-based partners.":1,"#Emerging-market multinational enterprises have competitive advantages in nontraditional areas like customer relationships, shifting business activities, and diversified portfolios of business lines.":1,"#Most emerging-market companies operate regionally and expand into other emerging markets that are close to home.":1,"#Emerging-market companies are actively competing internationally because they are:":1,"#Competitors":1,"#While the market shares are divergent across the three industries, foreign companies have greater market share and performance in sectors with more technology intensity, and state-owned firms have greater market share in lower-tech industries.":1,"#Foreign and private banks hold an insignificant share of the market because strong regulations limit their activities and locations. Most banking services in China are provided by local, government-owned banks.":1,"#<em ljsid-0=\"\">Telecom equipment.</em> There are no local ownership restrictions in the telecom equipment market, so foreign competitors have large shares. Local competitors dominate the market share, though, because they invest heavily in research and development and produce globally competitive products.":1,"#To operate locally, foreign companies must accept a minimum of 50 percent Chinese ownership by a local partner. These foreign-local joint ventures dominate the domestic car market, but the challenge of foreign carmakers is to stay competitive in China without losing market share to local partners or other local competitors.":1,"#China has become one of the largest and most dynamic markets in the world. Companies originating in traditional markets can study the country’s local and foreign competition to learn about the challenges and opportunities that exist there. China is especially competitive in three industries:":1,"#Strategies":1,"#Some key barriers to success, however, are still difficult to overcome. Multinational companies must have long-term strategies for success because many obstacles pop up in the expansion process that make business difficult.":1,"#Companies entering emerging markets are up against local competitors. Local leaders tend to have well-established distribution channels, relationships with key clients, and government support. To overcome these barriers and immediately tap into local relationships, companies can form joint ventures with existing local companies.":1,"#Barriers":1,"#Successful international companies based in emerging markets also show greater adaptability. Large emerging-market companies tend to be more diverse than their U.S. counterparts—they are more flexible to adjusting their business activities when unexpected shocks like financial crises, new technologies, or political events occur.":1,"#Companies originating in emerging-market countries are increasingly taking market share and sales away from existing leaders because of advantages like close proximity to commodities, strong government support, knowledge of operating in emerging markets, established distribution networks, lower-cost production capabilities, and existing relationships with key clients and customers.":1,"#Challenges":1,"#<em ljsid-0=\"\">Czech Republic.</em> The Czech Republic has a reputation for innovation and a long history of producing internationally competitive automobile and chemical manufacturers.":1,"#Indonesia’s major oil and gas reserves will provide the basis for growth throughout the 21<sup ljsid-1=\"\">st</sup>-century. Indonesia’s economy is also developing excellence in low-cost clothing manufacturing and information technology outsourcing.":1,"#Mexico’s oil and gas reserves are large enough to retain it as a net exporter of fossil fuels for the rest of the century. The country’s size and proximity to the United States also make it attractive for foreign firms to carry out assembly and manufacturing.":1,"#China and India will soon become the largest economies in the world, and the products and services sold in those countries will provide opportunities for domestic and foreign companies to generate major sales in the next several decades. The additional emerging markets that will likely demonstrate rapid growth and become global leaders in the future are:":1,"#Changes":1,"#<em ljsid-0=\"\">South Africa.</em> South Africa is internationally competitive because of its raw material and commodity exports and relatively low government regulation. Its extreme distance from regular trade routes in the northern hemisphere, however, is a constraint.":1,"#Russia’s main drivers of international competitiveness are natural resources and technological advances. The main constraints are higher wages and costs and strict government regulation.":1,"#Mexico fits into the global value-added chain through offshore assembly of many products and remains attractive because government regulation is not overly burdensome.":1,"#Indonesia’s low-cost labor, large population, and international competitiveness in mining, oil, and gas make it attractive to international suppliers. Despite these facts, Indonesia remains a low priority for most international firms because of the government’s extensive participation in the economy.":1,"#India demands permissions for all business activities. Despite this regulatory burden, the rising average income of India’s large population constitutes an attractive target market.":1,"#Multinational companies are attracted to the growing wealth and consumption of Brazil’s large population. The company’s distance from production bases and distribution channels is inconvenient, but as transport costs fall and Brazilian consumers become more globalized, Brazil is growing into a preferred market for U.S. and European suppliers.":1,"#Multinational companies are attracted to the growing wealth and consumption of Brazil’s large population. The company’s distance from production bases and distribution channels is inconvenient, but as transport costs fall and Brazilian consumers become more globalized, Brazil is growing into a preferred market for U.S....":1,"#Poised to soon become the largest economy in the world, China is attractive to multinational companies because of its low production costs. The country has a high degree of government regulation, but the possibilities for companies to incorporate China into their value-added chains are numerous.":1,"#Seven key emerging markets are leading the world’s economic activity:":1,"#Markets":1,"#<em ljsid-0=\"\">Study locals.</em> Emerging-market multinational companies are small, state owned, and family based. Traditional multinational companies should analyze these categories of businesses.":1,"#<em ljsid-0=\"\">Encourage innovation.</em> Conditions for innovation are stronger in traditional-market economies, but emerging-market companies are developing affiliates and making acquisitions to challenge the innovation deficit.":1,"#<em ljsid-0=\"\">Recognize competition.</em> There are growing opportunities for emerging-market companies to compete internationally; being flexible will help them compete outside their home countries.":1,"#<em ljsid-0=\"\">Analyze strategies.</em> China is one of the most dynamic markets in the world; studying the local and foreign competition gives companies insight into the challenges and opportunities that exist there.":1,"#<em ljsid-0=\"\">Overcome barriers.</em> Rule differences make entering emerging markets difficult, but adaptable companies are likely to survive unexpected shocks to their business activities.":1,"#<em ljsid-0=\"\">Understand challenges.</em> Emerging economies will become world leaders in their commodity sectors, so multinational organizations must understand their local competition.":1,"#<em ljsid-0=\"\">Anticipate change.</em> In addition to China and India, which will soon become the largest economies in the world, companies can also find opportunities to generate income in the rapidly growing economies of Mexico, Indonesia, and the Czech Republic.":1,"#<em ljsid-0=\"\">Identify markets.</em> There are seven key emerging markets that companies can expand into: China, Brazil, India, Indonesia, Mexico, Russia, and South Africa. All offer large populations, major commodities, and low production costs.":1,"#Emerging economies are challenging the traditional dominance of international markets. Companies must utilize several strategies to compete in the global value chain:":1,"#Emerging-market economies such as China, Mexico, South Africa, and Indonesia are challenging the United States, Western Europe, and Japan for dominance of international markets. Operating in these emerging markets gives multinational companies the opportunity to reduce costs, raise revenues, obtain skills, and decrease risks. In <strong ljsid-1=\"\">Emerging Markets</strong>, Robert Grosse uses detailed case studies of multinational organizations from both sides of emerging markets to examine how companies can better position themselves in the global value chain. He provides advice on how companies can integrate low-cost inputs, attractive markets, and accessible innovations from emerging markets into their strategies to maximize opportunities in today’s competitive landscape.":1,"#ISBN: 978-0-749-47449-2":1,"#©2016 by Robert Grosse":1,"#by Robert Grosse":1,"#Strategies for Competing in the Global Value Chain":1,"#Clicking this link will redirect to relevant products for the Author Robert Grosse.":1,"#econovation":1,"#A former vice president for growth and innovation for American Express, <strong ljsid-1=\"\">Steve Faktor</strong> held similar executive positions at Citibank and MasterCard. Faktor is the founder of Blue Beacon Partners, LLC, which advises companies on how to bring innovation to their organizations. An immigrant from the former Soviet Union at the age of six, Faktor earned a degree in economics and accounting from New York University. He posts many of his ideas for innovation on his blog at ideafaktory.com.":1,"#By Robert B. Tucker":1,"#Hypercompetitive World":1,"#How to Make Yourself Indispensable in Today's":1,"#Innovation is Everybody's Business":1,"#By Jeffrey Phillips":1,"#What Works, What Doesn't-And What That Means For Your Business":1,"#Relentless Innovation":1,"#www.wiley.com/business":1,"#http://www.ideafaktory.com/the-book":1,"#Faktor admits that some of his ideas may seem radical, but he insists they are all based on a common sense approach to reigniting the fervor for innovation that he believes Americans lost over the past four decades. Without finding new ways to innovate, he says, \"We'll sit in the same stew, surrounded by stale…institutions, but expecting fresh, new flavors.\"":1,"#Raising deductibles may seem unfair to patients, but Faktor suggests other incentives that could help shift the costs of health care away from the patients. To boost membership, gyms could make contributions to their members' health insurance plans. Retailers such as Walmart and Walgreens are already offering low-cost health care services to customers, such as cheap generic drugs. Faktor predicts such retailers may start selling health insurance plans themselves, using their tremendous clout in the marketplace to negotiate rates with hospitals and other providers. That is the type of incentive that could turn many people into loyal Walmart or Walgreens shoppers. Many employers already find that they can lower their insurance rates by including incentives for employees to join wellness programs. The successes enjoyed by these companies should serve as incentives for all employers to establish in-house wellness programs, subsidized gym memberships, and smoking cessation classes for their workers.":1,"#Faktor suggests a number of fixes for the system. First, insurance companies should raise their deductibles for testing, which would force patients to pay more for the tests but, more likely, would provide incentives for patients to question whether the tests are really necessary. In many cases, patients may find their doctors admitting that the tests are redundant and probably not necessary.":1,"#Faktor's final theme centers on creating incentives that encourage companies, and people, to become innovative, and nowhere is incentive needed more than in health care, which is currently based on a fee-for-service model. In other words, a doctor orders a test, the patient takes the test, and the patient and insurance company pay for the test. Obviously, the system benefits doctors and labs because the more tests they order and perform, the more money they make.":1,"#5. Build an \"Incentive Nation\"":1,"#Venture capitalists hold an important role in spurring entrepreneurialism. Faktor urges venture capital firms to reserve funds for micropreneurs. Large corporations should also look toward helping micropreneurs with the hope of profiting from those ventures. Netflix, for example, awarded one million dollars to a micropreneur who developed an algorithm that provided the film distributor with a better system for recommending movies, and Procter & Gamble has posted a list of proposed products on its website, challenging micropreneurs to compete for capital by offering ideas to develop those products.":1,"#Above all, schools should be preparing students to be entrepreneurs and, in particular, what Faktor calls <em ljsid-1=\"\">micropreneurs</em>. The fourth element of his plan is for micropreneurs (small business owners) to lead innovation. Micropreneurs are, for the most part, young people who have good ideas and good technology skills but lack access to capital and business know-how to bring their ideas to market. Again, it will take a partnership between business and government to spawn micropreneurship. Faktor likes charter schools because they can teach whatever they want, including entrepreneurial skills, but there are not enough charter schools, usually because state governments have placed caps on the number they allow to operate. These caps should come off, and once students get to college, Faktor argues that they should do more than just sit in classrooms. He likes a program at the University of Miami where students start their own businesses under the guidance of professors--so far, 45 of those businesses have turned profits.":1},"version":202899}]