Between 33 students a 4 faculty, we collectively took a bizillion photos.  Click on the two below links to see just a small sample of them:

Link From OCOB Grad Programs Web Site  (see 2007 photo gallery of pics)

Erik Slayter’s China Trip Blog  (he shot some really nice pics)

For the next two and a half weeks, our Cal Poly MBA students will keep this on-line blog highlighting some their travels and experiences in the People’s Republic of China. Below is their first blog entry as of the day we arrive in Guangzhou (soon!) and get settled. Be sure to scroll down and read about subsequent days and experiences on the trip. These MBA students are to be commended for making this investment in their education and professional future. — Professor Carr

Submitted By: Bonnie, Athena, Joe, and Danny

Our trip began with a 14 hour plane ride to Guangzhou. Everyone seemed excited to start the trip and equally excited to get some sleep on the red eye flight. In between Chinese movies and bathroom breaks, we were able to talk to a few Chinese passengers. In particular, one woman was looking forward to seeing her family in Guangzhou after living in California for some time. She will be attending UC Davis next fall and was very friendly and happy to chat with us.

After our surprisingly short wait through customs, we met our guides, Paula and Ken. Their warm personalities immediately made us feel welcome and in good hands. They helped us load up into our bus and we were off to The White Swan Hotel, arguably one of the most famous hotels in China. From the outside, the hotel did not have the same flashy exterior we are accustomed to seeing in an American 5 star hotel. However, the service, breakfast and beautiful art were beyond our expectations.  China and the service aspect of its economy seem to be developing nicely.

With time to kill before check-in, our class split up to explore Guangzhou on our own. Some people took a much needed nap in the hotel room, while the more adventurous ones decided to brave the heat to learn a little more about life in the city. Unlike America, the streets were full of people doing morning exercises and playing games like badminton and cards. Almost every block had a large group practicing Tai Chi to music playing from a nearby stereo. Wandering through a park by the Pearl River, we saw a choir of locals singing lyrics from a table-sized paper hanging between two trees. Although we could not tell what they were singing, they seemed to be really enjoying themselves. We were also amazed to see several people washing and swimming in the river. We realized they do not have the luxury, as we do, to be picky about water quality. On the way back to our hotel, we saw an old man painting Chinese characters on the sidewalk. Watching him slowly and methodically paint the characters was both relaxing and peaceful. While these experiences were not extraordinary on their own, together, they gave us a good idea of what life in China is like.

We were next escorted by several English speaking Zhongkai University students to an electronics market.   The point of this short excursion set up by Professor Carr was not for us to immediately get off the plane and make a bee-line for the first counterfeit shop we could find in China, but for us use some down time while waiting for hotel check in to get a feel for the sheer enormity of the counterfeiting problem in China and the role that it plays in their economy, despite Western press reports that things are often getting better on this important issue between our two countries.  We got the point — the size of this not so underground economy in China is massive.    And, it was here that we faced a real world ethical dilemma to test us that any Westerner faces who complains about the counterfeiting problem in China:  to himself/herself buy or not to buy the available knockoff merchandise they complain about that comes from China once THEY arrive in China. This market was also an interesting contrast to the massive shopping complex across the street, where prices are high and bargaining is not an option. With the guidance of Lonnie Hodge, an expat American professor who now lives in Guangzhou and previously taught at Zhongkai University, everyone got good advice about Guangzhou and its shopping.

After some fun in the pool and showers at our hotel after check-in, we got back on the bus toward Zhongkai University for a tour.  Riding the bus through Guangzhou showed a seemingly endless number of apartment complexes, lined with clothes drying in the sun. After later talking with Lisi, a Zhongkai English major, we found out that the limitless apartment skyrises are necessary to accommodate Guangzhou’s ten million residents. With ten thousand students, Zhongkai University actually has a small student population for a Chinese university.  However, expectations for increased growth and a government certification inspection have spurred the University to renovate their library and add some more landscaping touches. Visiting one of the classrooms where students spent thirty hours a week in stiff chairs and no air conditioning made us respect the drive and dedication of these students and appreciate the facilities we sometimes take for granted back in California and at Cal Poly.

Professor Hodge was gracious enough to take us for a walk-through tour of a middle class Chinese neighborhood and then show us his apartment and fantastic view of the Pearl River. He gave us a unique insight into what life might be like were we to live in China as an expat.  We bombarded him with questions as our curiousity was peeked.  He had nothing but wonderful things to say about the people he worked with and the Chinese culture. He explained that Southern China is the up and coming place for business opportunities and growth and that individuals with our background are in high demand. His comments reinforced the value of our China trip and may have caused a few of us to reconsider China as a possible career destination.

As we sat with stomachs full of Dim Sum during the evening dinner, everyone had an opportunity to reflect on the day and spend more time getting to know our new Chinese friends. Today was just a teaser of all we will see in China in the days to come. And yes, for all our family and friends who wondered about the weather, it is very humid and hot!

Professor Carr Addendum:  See this realted posted by Professor Hodge titled C-MBA Programs: Trans-Pacific Crossings. He makes some key points that relate to our visit and one of the reasons we have brought these students to China.

Submitted By: Peter, Lindsay, James, and Ashley

After our last night in Guangzhou, where our group bid farewell to Lonnie Hodge and the delightful Chinese students of Zhongkai University, everyone found themselves being woken up by alarms and wake-up calls for our earliest morning yet. We knew we had a long day of travel ahead of us as we checked out of the White Swan Hotel, but today would hold more educational value than we could have possibly imagined. We would learn much not only from our intriguing firm visits in Shenzhen, but also from our (mis)adventures with Chinese transportation.

The bus ride to our main destination was relatively uneventful, as most of the students chose to catch up on their sleep. But after a two and a half hour ride, our bus finally rolled into Shenzhen, a fast-growing and bustling metropolis. Almost immediately, students could be heard commenting on our new surroundings and how different they were from those in Guangzhou. Shenzhen has a distinctly modern feel to it, which is fitting for a city whose population of 300,000 twenty years ago has grown nearly thirty-fold to its current size of 8 million people. Professor Carr spoke to the class on the way into town, citing Deng Xiaoping’s decision to designate Shenzhen as a Special Economic Zone (SEZ) as the primary catalyst for this incredible growth.

As everyone attempted to grasp the scope of such economic development, Professor Lancaster implored us to also consider the ecological consequences that come with such rampant growth. Shenzhen was once an expansive marsh, but there is little trace of this environment left. Such a rapid alteration of a region’s ecology undoubtedly increases the potential for more dire repercussions years down the road.

Our first stop in Shenzhen was the Wal-Mart Global Procurement Center. We arrived right on time and were treated to a wonderfully thorough presentation detailing the Wal-Mart philosophy and how it is applied in procurement operations. Amy Wong, from the Corporate People (Human Resources) department, explained the history and corporate culture of Wal-Mart to establish a foundation for understanding how the company handles its employees, customers, and suppliers. Her presentation was followed by that of Lotus Wong, a divisional merchandising manager, who continued by explaining Wal-Mart Global Procurement, its origins, and its mission. We learned that a whopping 76% of Wal-Mart’s sourced products come from China and that the company conducts ethical audits of every factory to ensure local laws are being followed. After Mr. Wong finished his section, Kenneth Chan, the general merchandising manager, delved into the nitty gritty details of how procurement is handled by various Wal-Mart teams. It was evident from this section of the presentation that the supply chain for retail products is getting very fast and suppliers are expected to catch up. Though maintaining high product quality is certainly a concern for Wal-Mart, that high quality must be delivered quickly and at the lowest possible cost. Efficiency and speed is the name of the game in the retail procurement world.

Following the presentation, our group was able to tour the Wal-Mart offices. The work environment was startlingly westernized in both layout and atmosphere. Casual attire prevailed and cubicles with colorful name tags filled each room. We were fascinated to see such a distinctly American work environment be embraced in a foreign country so wholeheartedly.

Following Wal-Mart, our group departed for the Port of Shenzhen and its most prolific terminal: Yantian. At Yantian, we were set to learn of the marvel that is Chinese transportation. However, en route, we were beleaguered by engine and air conditioning problems from our bus. The irony that the Chinese transport system had failed us did not elude the sweat soaked students.

After 30 minutes of driving in the Shenzhen heat without air conditioning, we arrived at Yantian. Their friendly staff was there to greet us with towels and coldwater. Yantian then provided us with a dazzling presentation about the wonders of the China supply chain. With government support and backing, Yantian was able to gain 50% market share in the Shenzhen port. Furthermore, because of 9/11 and the need for improved security, Yantian and its commitment to technology enticed suppliers and shippers away from other ports. This can be seen in the marked decline in exports that Hong Kong has seen in the last few years, while just a little down the road, Shenzhen is blossoming. Another reason Yantian is prospering is because of the long term view they have taken towards shipping. Realizing early on that mega ships were the wave of the future, Yantian invested heavily in the infrastructure necessary to service them. These Goliaths of the ocean can carry over 13,000 cargo units. Not even the Panama Canal can hold these ships.

The largest ship in the world was unloaded at Yantian in only 9 hours. This world record holding feat is a signpost of the increasing speed of the supply chain. Goods can be transported much faster, with more accuracy, and with better quality control. However, the massive discrepancy between intra and international transportation was made infinitely apparent in our experience at the Shenzhen airport. After a flight cancellation and a 3 hour delay for no apparent reason, we were on our way to Shanghai. To quote airport authorities, “Flight 1361 to Shanghai has been delayed due to delays.” In the time accumulated at the airport, the group got a little taste of home in the form of Big Macs. It will please readers to know that the food quality is on par with any McDonalds in the U.S., and the service, even better.

At the end of the day, we had seen much China has to offer in the way of supply chain management. Wal-Mart has a 97% on time delivery rate and Yantian is capable of handling whatever the shipping industry may throw at it. On the bus ride to Shanghai, we saw signs for the Maglev train: a harbinger of the future of transportation and Chinese efficiency.

Check out this wonderful video that Erik Slayter has noted. This is one reason I agree with Henry Lane, who spoke to us earlier in the year, that it’s only a matter of time before China becomes an economic, political, military and geopolitical force to be reckoned with. They just have too many people like the amazing young woman that’s the subject of this video portrait who are willing to buck up, sacrifice and just get it done ….

Chris — I recently came across this website. This site is a project where they interview regular people from all over the world on a handful of topics such as “love, tears, happiness, childhood, etc.”. It is a very compelling site if you enjoy watching people.

Also, of particular interest to us is an interview with an 18 year old Chinese girl who has just moved to Shenzhen to start working. To get to her interview, once you’ve gone to the “English” page, click on the little link called “portraits”. Once you get videos playing, you can scroll down to “China”.

She talks about her family, her country, her work, etc. I found it to be very interesting to listen to her talk.

Go check it out…it might even be better than watching people at the airport.

Also, before you lecture or preach to the Chinese on labor and factory issues, and to help you put the issue of the factory working conditions we will see in China into a comparative historical context and perspective, you simply must read this Wall Street Journal article, Lemonade Stands? Children Used to Toil 14 Hours, Every Day.

Professor Carr October 15, 2008 update:  See also this thoughtful Newsweek article on factory girls in China, Assembly Required.   An interesting piece that comes at this controversial topic from a different angle that most I have seen.   The book highlighted in the article might also be a good one to select for your Spring quarter book review.

Submitted By: Kerry Huang

See this Wall Street Journal article (Chinese Investors Crunching Numbers Are Glad to See 8s).

In the US and most developed nations, investors carefully study companies before making investments. Financial institutions with seasoned analysts account for a bulk of the transactions on the stock exchanges. However, in China many of the investors are unexperienced individuals who base their decisions on “lucky numbers”;  specifically, the number eight, which signifies “wealth” in Chinese.  According to the article, investors will buy a company’s stock if the number eight
is in it.

Many will find this practice laughable but the Chinese take lucky numbers very seriously.  For example, as we ride the elevators in China one will notice that the buttons for floors 14 (”want death”), and 24 (”easy death”) do not exist.  With 60% -80% of China’s trades being made by inexperienced investors, one wonders what will happen to the stock market? Will these superstitious investors crash the market? How will the government regulate such trades?

Side note:  Even Chinese American’s who grew up with superstitious parents are affected by lucky numbers. My normally rational friend freaks out every time she looks at the clock and it reads 4:44, which is “death death death.”

Clarification to make sure there is no confusion:

1. On your individual blogs, each individual is supposed to have a short recap of each facility we will be visiting (noted *** in your information booklet).

2. Each team is responsible for approximately 5 “focus” firms to be ready to be the catalyst for questions when we are on the road - but nothing needs to be posted on your blogs ahead of time.

Submitted By: Steven Feng

Speaking Mandarin or Cantonese would enhance the experience of the trip. We could interact with more people if we could speak the dialects. Unfortunately, it takes years of practice, and we have less than six months before the trip. Still, we should make an attempt to learn some basic words and phrases or to practice the language for those that already speak one dialect.

I am proposing we have an informal discussion/practice once a week for an hour during the spring quarter. If you are interested, please leave a comment. Include in your comment:

• The language, Mandarin or Cantonese, you would prefer to speak

• The weekday and time you prefer to meet (I figure the following times would be most appropriate, but you could suggest an alternative:  Tuesday 11-12 and Thursday 11-12 on the days we are not in a China lecture)

I will count up the votes, and majority to set the time and language. I looked on the internet for books and the least expensive is about $15 with a CD.

Submitted By: Erik Slayter

I recently received an email from Grant Thornton (a large, global accounting firm) describing to me what they call their “Interest” program. It is interesting to me that they are rolling out this program focusing specifically on the Chinese market. We have several accountants in the MBA program…is this enticing to you?

Under phase 1 of this program, Grant Thornton (GT) works with Chinese Nationals from the People’s Republic of China. Through this program, these accounting professionals are sponsored by GT for a 2-3 year work visa and work in a GT US office. Interest participants have a compensation package similar to that of other professionals at their same level in the US. Additionally, participants receive the same firm training as their colleagues and are provided a coach to assist in their skills development.

At the end of their 2-3 year stint in the US, they return to China for a position with the Grant Thornton International firm in China.

GT states that their program is different than a traditional exchange program offered by other firms because they have a larger dedication to their participants. Interest professionals meet annually with the firm’s national and international leadership to learn about specific Chinese initiatives. Biannually they participate in a videoconference link to the Shanghai or Beijing office to receive an general business update by a partner in the Chinese member firm. Finally, an annual visit home provides the Interest participant to meet with other Chinese professionals to develop relationships they can build on upon their return.

Americans like to think of themselves as entreprenuers and builders.  Okay, fair enough, we are.  No need for false humility.  But so are others, particularly in China. 

My hot cup of jo’ this morning tasted particularly good due to how much enjoyment I received while reading this front page Wall Street Journal article, Tools of a Minster To Modern Seamen: Cash, Phone Cards.  Now THIS dude can teach an MBA student, a business prof and business schools a thing or two about being an entreprenuer; only he does it for Providence and not cash (okay maybe he has his weak spots re: profitability, but even entreprenuers are entitled to be do-gooders).  But give this man (of God) credit — he can flat our spot a niche market in Hong Kong and serve it in a way that others are not, and talk about a poster child for the marketing precept of “knowing your customer”!

PS — as a follow up to Professor Ramezani’s talk and your econ courses, see this very relevant China Law Blog post of earlier today, “Why China Grows So Fast.”

* Thursday, January 18 from 11:00 am to 12:00 pm, Room 114 — OCOB Finance Professor Cyrus Ramezani will discuss “Recent Developments in Chinese Financial Markets”

* Thursday, February 1 from 11:00 am to 12:00 pm, Room 114 — OCOB Management Professor Colette Frayne will discuss “Managing People in the Global Environment: A Look at China”

* Thursday, February 22 from 11:00 am to 12:00 pm, Room 114 - Cal Poly Architecture Professor Rob Pena, attorney Michael Jencks, CEO Neil Lahey of Deventec, Inc. Solar Energy, and Cal Poly OCOB Accounting Professor Kate Lancaster will discuss “Looking at China Through the Lens of Sustainability”

* Friday March 9 from 10:00 am to 2:00 pm, Room 201 — Henry Lane, CEO of Dioptics, a SLO company that sells sunglasses around the world with its suppliers are located in China, will discuss “Managing the Global Supply Chain”; and Ray Bowman, Logistics and Shipping Expert will speak about his field (note we will again try to visit the Port of Yantian and Logistics Center in Shenzhen)