WHAT IS YOUR CHINA STRATEGY? Morry Morgan

CensorshipSelf CensorshipMedia CensorshipGovernment Censorship

StereotypesCuisineScholastic CompetitionDriving

LoopholesMy Chinese Wife

CONTENTS

MacroviewMicroviewCorruptionHRMarketingSalesPerpetuity

MACROVIEWWhat is the Chinese

Trade

A positive country?

Top 10 issues

1. Soaring commodity prices (59.5%)2. Health care availability and prices

(42.9%)3. Income and wealth gap (31.6%)4. Government corruption (29.3%)5. Unemployment (24.2%)6. House prices (24%)7. Retirement pension for the elderly

(16.6%)8. Food safety (15.9%)9. Education Costs (10.9%)10.Environmental Pollution (10.3%)

in China in 2011

Source: Chinese Academy of Social Sciences

It could have been

much worse

Laws are beginning

to stick

Why are you here today?

Topics most commented on

MICROVIEWWhat is the Chinese

What are the top 5 leadership qualities?

Capacity for passion

Perspective

Creativity

Organization skills

Teamwork

Persistence

Open-mindedness

IntegrityJonathan Byrnes, a Senior Lecturer at MIT,

writing for the Harvard Business School

ClarkMorgan “Leadership Quality Survey 2010” – 203 respondents

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16

Qualities

Perc

enta

ge (%

) of R

espo

nden

ts

indi

cate

impo

rtan

tWho is the perfect leader?

CORRUPTIONHow relevant in China is

Case Study

Stern HuChen LiangyuPi QianSheng

Bo Xilai

HUMAN RESOURCES

What you need to know about

China has the lowest engagement (17%) and highest disengagement (29%) of all regions surveyed globally.

- BlessingWhite 2010/2011 Global Employee Engagement Research

“

”

Mexico ranked highest (75.8%) and China ranked equal third last (63%) alongside the UK.

- Hay Group employee engagement index

“

”

MRINew Challenges

Team CamaraderieWork/Life Balance

Aon Hewitt

Learning & Development

Company ReputationCareer Opportunities

Source: Network HR

vs.

“China costs more than the average worker in any other emerging Asian economy, excluding Malaysia and Thailand, when considering in terms of combined salary and welfare payment.” - Chris Devonshire-Ellis , China Briefing

“The Chinese robot market is currently growing at an annual rate of about 30%. China will take the lead among industrialized countries with projected sales of 30.000 units in 2014.”

- Wolfgang Heller, Infonaut AB

Case Study

Kimberly Clark

MARKETINGWhat you need to know about

879,000,000mobile phone users in

China

Source: China Internet Watch

457,000,000

internet users in China

Source: China Internet Watch

“98% is broadband!”

303,000,000

Mobile internet users in China

Source: China Internet Watch

Chinese aged 18 to 27 spend

almost 5 hours every dayon the web or e-

mail

Source: China Internet Watch

58%of Chinese

spend 3 hours each day on the

internet

17%of Chinese spend

3 hours each day on watching TV

vs.

Source: China Internet Watch

In 2010, Taobao transactions totalled60 billion

USD(same as total trade between Australia and China)

Source: China Internet Watch

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What are internet zombies?

Topics most commented on

Antal InternationalFounded 19931440 FANS

RMG SelectionFounded 2010

31,000 FANS

Case Study

Norwegian Salmon

Norwegian Salmon Company

100,000+ FANS

4 replies

Why are the following advertisements illegal?

Can the media be bought?

Case Study

Spark09

Esquire and Bang & Olfsen

SALESWhat you need to know about

Venti Latte $5.70 USD

Venti Latte $3.70 USD

Gary Lock

eReposted 28,000 times on Weibo

US Ambassador

ClarkMorgan “Leadership Quality Survey 2010” – 203 respondents

Do you know your Chinese customer?

Ac-coun-tancy

Fashion FMCG Leisure Luxury Goods

Medical70

75

80

85

90

95

ChinaAP Average

% E

xpec

ted

man

agem

ent h

ires

What are the top 5 sales qualities?

Top qualities of your sales force

5

Product Knowledge

Ability to build goodwill

Ability to uncover needs

What are your Needs?

What are the needsof Chinese?

Legwork

“He means ‘Checking’!”

Following through/up on promises

PERPETUITYHow do you build