Monday, August 4, 2014

Reflections on my MBA International Trip

Through the years, I’ve been very fortunate to travel abroad both professionally and personally.  I’ve developed a passion for exploring other countries’ culture, food and architecture, inspiring me to seek an ex-patriot assignment.  This was the largest motivator for obtaining my MBA at the University of Louisville.   Being able to combine both the education that I need to advance my career with an opportunity for international travel made the U of L Weekend MBA the perfect fit.   I selected the Korea-China trip because Asia is the fastest growing segment of Mead Johnson Nutrition’s portfolio.  Thus, it is the most likely candidate for an ex-pat assignment. 
A modern, thriving city, Seoul did not disappoint.   The varied topography, including large rivers, mountains and numerous parks and gardens, was quite lovely and provided a welcome relief from the hustle and bustle of the city and its numerous commuters.  Seoul was very multi-cultural and western friendly and I found it very easy to navigate.  The plethora of dining and entertainment options was almost over whelming at times.   Only the enclaves of traditional Asian architecture with their slate roofs and animal guardians called out that you were not in some flourishing, metropolitan US city.   Additionally, Koreans were very welcoming of Americans and I never felt uncomfortable or ill at ease.  Finding a sign or menu in English was quite easy and the people were very friendly and helpful. 
The three business visits in Korea revealed many similarities to the US.  As an example, the brand logos and visual brand language for both Nike and GM were identical to those promoted in the US.  All three businesses had multi-cultural staffs made up of not just native Koreans but also Americans and Hispanics. Nike controls manufacturing centrally, employing central management with regional influence, ensuring a globally consistent brand image.  GM leverages a global supply chain and international project platforms such as reduced carbon footprint and electric vehicle development.  The legal system is very similar and in fact many of the professionals at Kim & Chang were educated in the United States.  While there is some formality in business deals such introductions, the giving & receiving of gifts, and strict management hierarchies, these did not hinder communication or seem insurmountable.
With a per capita annual income of over $23K USD per person, the standard of living is improving, supported by free trade agreements with the US and EU.  With that said, I predict that Kim & Chang may have their position as Korea’s largest law firm challenged over the next decade as US firms start to open offices in Korea for the first time.  They will need to leverage their strong heritage and brand image in Korea in order to grow and remain competitive. 
Overall, I found Seoul to be a very welcoming city with both similar conveniences and many of the same headaches as any typical metropolitan US local including, many restaurants, heavy congestion, long commutes, sky-rocketing real-estate prices, etc…  It is only its close proximity to communist North Korea that makes it a less than ideal spot for an American ex-patriot.  The volatility and continued military action due to the conflict between North and South may hinder continued growth in the country. 
Our arrival in Beijing provided a very clear distinction from anything that I have witnessed in the US; pollution is a large and pressing problem in China’s capital city.  The scale of the city was mammoth and daunting at best as English was generally not provided.    Unlike Seoul and many US urban cities, there was not a plethora of city parks and natural habitat visible during our jaunts through the city.   However, the landscaping and floral decorations at many businesses and public sites were quite impressive.  Beijing provided the visual of a city in developing status with new, high-rise, high-gloss buildings positioned adjacent to small, dilapidated dwellings. 
While the historic architecture in the Forbidden City was stunning and the sheer magnitude of Tiananmen Square and the Great Wall were magnificent, I did not find Beijing to be as hospitable as either Seoul or a typical US metropolitan.  It was often difficult to communicate and finding signs or menus in English was not guaranteed.  Additionally, the service at restaurants and bars was atrocious and very frustrating.  Basic infrastructure that is often taken for granted in the US such as modern power distribution systems and clean water were lacking in many parts of Beijing. Beyond this, I found it disconcerting that so many people we encountered had never seen a Westerner and often took photos.  It felt very awkward and not at all welcoming.
However, the business visits in China revealed once again that many business concepts are universal and not country specific.  I found it very interesting that Oshkosh places such importance on corporate social responsibility, as this is a common theme in the US.   Additionally, Schneider Electric employed SAP, SIOP and Six Sigma, all programs that are seen in many US entities. 
In contrast, business dealings, especially events, dinners & press conferences, are very formal in China.  As an example, at a formal dinner, a typical seating arrangement for 12 would require a clear understanding of the key decision makers and their rank.  An example is provided to the below. 
            It would be very important that the most important guest is seated on the most important host’s right and the 2nd most on his left. The 2nd host is seated directly opposite.  The US does not observe such strict adherence to hierarchy or Face Value.  
Another clear distinction between the China and both the US and Korea was the ability to protect intellectual property.  GM Korea is a design center in Seoul which supports platforms and components utilized around the world.  Neither Oshkosh nor Schneider do design work in China.  As Oshkosh manufactures equipment for government owned entities such as airports, I predict this will be a challenge for them in the future.  The Chinese government has already started to require in country engineering and design in the energy and transportation arenas. It would seem to be only a matter a time before this trickles down to other industries. 
The visit to Weber Shandwick was surprising because the presenters were very vocal and public in their support for the communist regime.  Having traveled to southern China previously, this seemed inconsistent with many of the young people that I have encountered who long for Western freedoms.  As they are a public relations firm, I expected a similar disposition.   Freedom of speech is clearly not supported in Beijing in sharp contrast to any US metropolis. 
I enjoyed the Beijing portion of the trip as the historical architecture and relics were amazing, but did not find it to be welcoming of Western tourists.  Beijing suffered from horrible pollution and significant urban sprawl with a high cost of living.  This is perhaps not unlike NYC or LA, but it lacked a multi-cultural feel and the abundant censorship made it oppressive.  With both Facebook and Google’s Gmail blocked, it made communication with loved ones at home challenging and added to the sense of isolation.  Also, I found the shop keepers to be very aggressive and was uncomfortable by the number of people that openly gawked at us, as we moved through various portions of the city. 
As stated previously, I believe that many wholly owned foreign enterprises, WOFE, like Oshkosh will be challenged to operate and grow within China unless they start to include product development in country.   This will be especially true of companies that are generating revenue from the government and municipalities like Oshkosh.   They will need to carefully consider the IP risk of moving items of this nature to China versus the potential for lost revenue if they do not comply and are forced out of the country.
World Strides did an excellent job of providing the right mix of historical, cultural and business emersions.  The tours to the Buddhist Temple in Seoul and the Forbidden City and Great Wall in China were truly unforgettable.  I have visited other Asian cities such as Bangkok, Hong Kong, Singapore and Manila,   but had never visited cultural sites that were truly ancient.  The sheer scale, attention to detail and engineering, of the historic buildings was overwhelming at times.  For me, the trip re-affirmed my desire to complete an ex-patriot assignment.  Seoul is a destination that appeals to me because of its mixed cultural influence and ease of movement throughout the city.  While a nice place to visit, I learned that Beijing is not a city in which I would want to live.  The pollution, high cost of living and lack of ethnic variety did not appeal to me.  It was challenging to maneuver the city and communicate at restaurants and shops.  I believe the capstone trip was a nice complement to the overall educational experience of the MBA.  It allowed me to experience other cultures but also supported the premise that much of what I have studied is applicable not just in the US.  The foundations for the MBA are universal as business, regardless of where it occurs, is very similar.  The people, place, customs and language may change, but the desire to sell a product and the desire to buy a product have no national boundaries.  We are all consumers and we all have things we wish to buy to make our life better. 


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