Made in China—Book Review
Like most other authors in the past 5 years, Donald N. Sull is pretty high on China and its coming ascendancy to world super-power status. Sull’s Made in China details many of the same company profiles (Lenovo, Sina, Haier, Wahaha, Galanz) that others use to talk about the rise of China.Sull's difference is that he holds up the Chinese companies as success stories "despite" their humble Chinese origins and then compares them with the failures of larger foreign companies is a similar environment. A pessimist could read this book as a litany of of foreign companies' inability to really “get it right” in China.But I'm not a pessimist--I like what this book has to offer.I think that Sull has filled his praise for Chinese entrepreneurs with a ton of practical advice—and that’s what makes this book so valuable. Rather than just rehash mind boggling stats Sull includes a detailed and useful review of successes and missteps by both domestic and international companies in China.This book makes stories and stats from China USABLE!Some of the concepts that work for anyone coming to China include:1. Fog of the Future: understand, truly understand that China is unpredictable and is constantly changing. What is true today probably will not be tomorrow. This means a complete mindset change. You have to be constantly looking out into the uncertain future and at the same time taking active advantage of today’s opportunities. Change is the only constant here. Learn to embrace it or it will crush you.2. SAPE Cycle: Sense, Anticipate, Prioritize and Execute. Basically do it and do it now. If you don’t do it now, the fast pace of change in China will make you outdated before you even get started. Be capable of successfully managing internal and external change.3. Manage Relationships Dynamically: Ironic here that the same book that holds Wahaha and Danone up as a success story also warns readers to be wary and cautious about relationships. This is not just “don’t do JV’s in China” but a how to grow and use relationships effectively in China. Despite what many people will tell you, personal relationships still do play an important part in doing business in China. I don’t mean that you still need to use guanxi to get in through the back door. Today, it’s about professional relationships that can also be intensely personal in nature and can be used to facilitate opportunities that appear in the ‘fog.”Read up on the recent crumbling relationships between Danone and Wahaha at the same time you read this book—a timely confirmation that change and relationships are what you need to pay attention to in China.