We have returned to the USA!

Six cities, over 16 firms, several universities, and numerous cultural excursions in 18 days.

Below you can read about Days 1-17 of our journey. Overall the firm visits this year were excellent.

I view the trip and course as a success, but I define “success” differently than perhaps most would.

First, let me note that this was an excellent group. Collectively, the “got it”. I appreciated their effort, maturity and professionalism on the trip, including their willingness to put self aside for the greater interests of the group.  They collectively worked hard, bucked up when travel bumps appeared, they rolled up their sleeves and were proactive in their learning and the questions they asked. This group was much more active than past groups in practicing some of the simple things of business like the exchange of business cards, networking, and starting to cultivate relationships with people they met abroad. This was great to witness, as it was one of the learning goals for the course.  Collectively, they were outstanding ambassadors for our country, college and university.  I am very proud of them and their efforts.  In many instances, because of the professional way they conducted themselves, they changed the perceptions of Chinese and Indians about Americans in a positive, productive way.  I felt honored to witness such an exchange and it made me feel optimistic about the future.

Some students found they really liked China and/or India. Some discovered they did not. Some students came to see China mainly as the factory of the world; others concluded it’s a market and/or both. I think many came to realize that with respect to India, nice roads and trains do not necessarily make a country — it is the people that make a country. As an example, during their off-the-clock free time, a number of the students went to a nice night club and witnessed Hindi, Punjabi and English music and songs being seamlessly played and connected, as the crowd danced with delight. For me, this is a true symbol and metaphor of India and its strength — the Indians adapt and are self sufficient, lack of infrastructure and all, and they make it happen and succeed, and all while not making a big deal out of their success. We just don’t see this happening as much, in my view, in the West.

Some of the innovators in our student group spotted tremendous business opportunities amidst the chaos of China and India; while some of the traditionalists in the group seemed flustered, stressed and/or intimidated by the chaos one finds in China and India. This trip was a great testing ground for for both subsets.

Sometimes students found that on a trip like this the plane or bus is on time and comfortable; other times not. Some tolerated the food and some even liked it (particularly in India!). Some discovered they could thrive in the difficult physical circumstances that China and India and international business presents; others found that mountain hard to climb.

There is no doubt that throughout this trip we saw ample anecdotal evidence to support Fareed Zakaria’s hypothesis and argument in his excellent, thoughtful, and recently published best selling book, The Post American World; to wit, that it’s not that the USA is in decline so everybody needs to sit back down and stop stressing out about that myth; it’s just that other countries like China and India are on their way up and we need to learn how to deal with it and partner with them.

The health of most held up, but some did become physically ill due to a cold, fever or the food.  I was very thankful nobody was quarantined as we entered mainland China.

All seemed to develop a deeper understanding and appreciation of the sacrifices that overseas employees and their families make when a firm sends them to make headway into a new market and the unique business opportunities that can be found for a forward leaning business thinker in a place like China and India in relation to the West.

We caught a break with the weather in China - it was not as hot as usual and the pollution was not nearly as bad as usual in Beijing. In India, it was fairly hot and humid, and it pushed each of us. We were also lucky in that in Bombay (Mumbai) it did not rain that much, even though it was/is monsoon season there.

The students also picked up several best business practices from the Chinese and Indians that they can bring back with them to the West (e.g., in China and India, the guest, client, etc. are king and attention to them matters; in India, they even have a saying relating to this point - “the guest in your house is a god”). They also caught a good glimpse of the type of people they need to hire who they can send and who can thrive in the markets of China and India, particularly if/when they conclude getting on said plane ride is not for them.

Most students appeared to be humbled and impressed by China and India and their people and talent; while some may return home skeptical; and a very small minority might even return home with a mistaken Western ethnocentric belief they are somehow smarter, better looking/prettier, or superior to the average Chinese or Indian national or manager who speaks broken English (and man, oh man, is this latter minority in for a wake up call someday).  All seemed to reach a deeper understanding of why China and India and the US need to work together to solve future geopolitical, business, societal and environmental problems. Should we elect to not partner with these countries and their peoples to solve the challenges of today and tomorrow, we do so at our peril.

Some students saw China and/or India as needing the USA for some time; while others concluded that China and/or India will in time throw down its crutches of needing the US, begin to walk on its own and in time run and be true contenders on the world stage, possibly even surpassing the US in the economic and geopolitical spotlight. Others described what they found in China, a communist country, as being full of pure, raw, unfettered capitalism at its best (and sometimes its worst); while others saw more of a mixture of a system made up of government monopolies that protects certain players and industries. Comparing “communist” China with hyper-democracy India was an outstanding learning experience. Most seemed to develop an appreciation that whether one likes China and/or India or not, an educated MBA and MS in Industrial Technology needs to better understand how they fit into the global value and supply chain.

In other words, everybody who made the effort had the opportunity to test their talents, beliefs, values, biases, egos and professionalism in some way, shape or form, and the trip was a microcosm of the real world that no textbook, case study or professor in a classroom can teach.

Most of the above are also some of the very types of issues, questions and items we had hoped students would grapple and struggle with when we started to plan this trip a year ago, and I do not believe for a minute that one can teach these types of lessons sitting and staying within the confines of comfortable Cal Poly and San Luis Obispo, California or even the United States for that matter.

I also encourage the readers of this blog to check out the reflective post-trip journal entries that I require each student to make, as over the next few weeks they will load that document onto their personal trip blogs you can/will find on the right hand column of this blog. Good managers and leaders take time to reflect on what they have learned, where they have been, and where they are going. Click and read away as their post trip reflections come in. Having said that, I have learned on this trip that the true power of their learning experience will likely not fully hit them for another year, maybe two or three.

These 32 Orfalea College of Business graduate students were provided with an on-the-ground opportunity to see, ask questions, experience and witness first hand some of the pros and cons of: (1) China — the world’s biggest start-up and turnaround; and (2) India — the tiger struggling to break free from its leash and at the same time finding that it is the very leash holding the proverbial tiger back.

We also had the opportunity to develop a deeper understanding of what globalization is all about and some of the challenges that will face the business firms and governments of tomorrow. Each of us was able to confirm and test some of our preconceived notions about business, capitalism, communism, China, hyper-democratic India, and themselves, and debunk others. These students should also now have the ability to understand and analyze, at a sophisticated and nuanced level, the next front page article they read about China and India and business that appears in the Wall Street Journal, Financial Times, New York Times, Business Week, The Economist, et al. and be able to understand why it’s a front page story and be able to separate fact from global legend and urban lore. This ability to do so will set these students apart from the average American and businessperson, and even most of our politicians, who blather on and on about China or India when they know nothing about it, they have never even been there to see these places for themselves, and/or they could not find said places on the map if their lives depended on it.

Of course, how, when and whether this group of future business leaders leverage the knowledge and experience gained through this trip during the next phase of their lives is up to them. At the Cal Poly Orfalea College of Business, I can represent we have done our best in this regard. I am confident they will make the best of it. This is a talented group of young men and women. They give me great hope for the future.

A big, big shout out and thank you to all who helped us on this trip. THANK YOU! Again, our firm visits this year were top notch and incredibly engaging.

As for me, I am bone tired and jet lagged. But a nice thing about this trip for me is that I always feel a deeper love for home — meaning the USA, SLO and my house and family — each time I return.  Traveling abroad for such a long period of time also, as the saying goes, “helps me remember who I sometimes forget to be”, and I am thankful for such a crash review and reminder course.  The next few weeks I plan to get away from work and spend time with my family. I also plan to take a break from China and India and blogging for the next month and I don’t plan to make many (possibly any!) posts during that time.

Until then, thanks again to this wonderful group of 32 students.  They made us proud at Cal Poly.  And they were a lot of fun to travel with.

Team Two:

After an early breakfast we got into the arduous rhythm of the day ahead of us, leaving downtown’s comforts to go to the city’s outskirts, where most of the factories are located. To our surprise, the streets appeared desolate. It’s probable that most of the population was working at the time. Not knowing what to expect for the long day ahead of us, but looking forward to our first visit, we were excited to receive a very warm welcome by the first company’s entire management team.

The congenial atmosphere – combined with the high level of interaction that we were allowed to have with both the staff and the company’s advanced packaging machines – made our visit one of the most memorable thus far. That should not have come as a surprise since we did our part in taking care of the details before visiting, and the company was well prepared for us as well.

We concluded after spending a couple of hours that went by too quickly, but we had more companies to visit. So we rushed into the parking lot, took several pictures under the cloudy, gray Chinese sky and climbed into our bus. The ride was highlighted by a strong downpour that turned the sky a clear navy blue.

Our next tour was very special since it was led by two graduates from our very own program who found jobs working and living in China. We visited their company, and the tour took us through a typical electronics manufacturing factory, where we ate lunch with the workers and met with their team. For many of us, this was a very insightful visit, since it showed us what two Cal Poly graduates were capable of and how their MBAs had prepared them for the “real world,” even if that real world was on the other side of the planet. Both of these graduates had completed their MBAs the year before, and it was impressive to see them in action after only a year in their jobs. Both talked with us at length about their positions, what it was like to live and work in China, and their successes and drawbacks in the process of moving overseas. Our time with our fellow alumni made many of us current students consider an overseas career much more carefully.

We were then fortunate enough to visit the headquarters of the industrial park that unknowingly we had been in a most of the day. I guarantee that all of our perceptions of an industrial park were turned upside down with this fascinating visit. This “industrial” park included an international science and cultural center, high speed rail, mammoth sized lakes, and housing for over one million people. Parks like these show an important window on China’s reform and to their opening up to international cooperation. Impressively, this industrial park was already housing over 100 Fortune 500 companies.

After our tour, we went to a European hypermarket chain that has made impressive China inroads. The retailer’s strategy was to approach provincial government officials and ensure them of their intent to hire locals and source goods locally (as well as bring in tax revenues). The strategy has paid off handsomely – the retailer now operates over 100 locations despite being levied a hefty fine for having sidestepped Beijing.

But our hypermarket trip was less business and more shopping. We skipped the department stores and stocked up on food for our overnight train ride to Beijing. The supermarket had some exotic offerings – from live turtles to squid jerky. Most students took the ordinary route, opting for instant noodles, chips and cookies. There were a few that ventured into the local produce and deli sections. They might not have been sure of what they ordered, but they loved the taste and the cheap prices.

Next, the group arrived at a packed station lugging luggage and groceries. We boarded the train and were four to a cabin. We spent a while sharing drinks and food in the corridors before calling it a night. Half of us really enjoyed the experience, half weren’t as keen – but the fact remains, the majority of Chinese travel by train, and it was an important cultural and learning experience.

Today we checked out of the Grand Hotel Beijing at 10:00 am; this would be our last day in Beijing.

We began the day with a fascinating presentation at a nearby conference room from an expat and executive from Ogilvy, a marketing consulting firm. He began his speech by discussing the internet in China and the latest issues surrounding it. Topics included the demographics of China’s “netizens”, the internet’s major uses, and marketing tactics. He mentioned that the Chinese use the internet mainly for entertainment purposes and prefer instant messaging over email. He also discussed the misconceptions concerning the “Great Firewall of China.” This term is really a misnomer and its myths mirror those of the Great Wall of China (it cannot be seen from space and it can be penetrated). There are relatively easy ways around these restrictions for those who are computer savvy and 99% of internet users don’t care much about said firewall restrictions. In addition, he noted there are only 30,000 “internet cops” policing the entire population of China’s internet users. It is a challenge for this enforcement group to control the country’s netizens. He also provided insightful, honest and enjoyable information about his business experiences in China. It was an excellent and informative presentation.

Our second visit of the day was to Beijing United Family Hospital where many of the doctors are expats. The operations manager of United Foundation for Chinese Orphans (UFCO), talked to us about her efforts in helping orphans find medical treatment. For several years sge has been enlisting young volunteers to help be caregivers to orphaned children, and often abandoned infants. Her stories were remarkable and touching, and at some points seemed overwhelming. She is a very strong individual to be able to deal with such emotionally charged cases. She talked about different sources of funding for her non-profit organization including fund raisers, and talked about the interaction with international adoptees and the financial incentives ($3,000 per adopted child) for the orphanage.

Before boarding the night train for Suzhou we visited Carre Four, a French retailer equivalent to Wal- Mart. Our goal on this visit was twofold — first, to load up on snack and dinner for the beckoning 11 hour train ride, and second, to compare and contrast with the Wal-Mart business model. Upon entering we noticed that we were in a small mall which eventually turned into Carre Four. We went up flat escalator ramps to the second and third floors. The floor was huge and the layout was similar to familiar isles back home, the products however, were very foreign. There were isles dedicated to rice wines, and isles dedicated to instant noodle bowls. Familiar products were also available, from red wines to deodorants, but these came at a steep premium. The perimeter of the store was like that of a grocery store back home it had delis, butchers, bakeries and fresh produce. The amount of seafood was comparable to the amount of other meats and most of the seafood was live or very fresh on ice. A lot of the meat products and cuts seem to be oddities to people from the west, but it is important to understand that many people who came from rural areas or poor families grew up on these more affordable food items, but have grown accustomed to them and enjoy eating them even once they move into big cities and earn higher incomes.

The train station at Beijing was incredibly packed; many people in China seem to have no reservations about pushing and shoving. It is difficult to imagine a similar scene at a U.S. train station. It just shows that public transportation is still the main form of transportation for many Chinese residents. We were fortunate to avoid much of the afternoon rain and we finally boarded the sleeper cars at 7:30 pm on our way to Suzhou.

Day 7 – Suzhou to Shanghai

We arrived in Suzhou by train at 6:30 AM and promptly packed our things into our bags, clearing out of the sleeper cars. The walk through the train station was quite a challenge as we maneuvered up and down sets of stairs. We met our new bus driver and headed out to the Lotus Gardens. Suzhou is known as the Venice of the East due to its numerous canals and while the many waterways do add to the uniqueness of the city, the real beauty lies in Suzhou’s gardens. We walked through the gardens for an hour and then met to take a boat ride along the canals. What we thought was going to be a tour of the canals ended up being a 100 yard journey, but luckily the driver sang for us so we didn’t feel cheated out of our money. The short boat ride gave us extra time to spend before we needed to be at our firm visit, so we stopped and walked through a local farmer’s market. The sights and smells were enough to overwhelm many in the group. Live chickens, ducks, fish, crawdads, and frogs were all throughout the meat section. Vegetables and spices of all kinds could also be found throughout each of the many isles of the market. We were greeted by surprised but welcoming faces from each of the vendors and we often heard “hello” or “how are you”. There was a little bakery that sold muffins which ended up being breakfast for the entire group as we got back on the bus to head to the Suzhou Industrial Park.

Our first firm visit was to the China-Singapore Suzhou Industrial Park. The Industrial Park is huge development with 74 Fortune 500 companies, over 100 R&D organizations, commercial and residential space and much more.  Our host gave a presentation that detailed the history of the park and the plans for future developments. He discussed two important economic areas, the Coastal Economic Belt and the Yangtze River Economic Delta, which conveniently intersect near the park.  Our host’s specialty is working with companies to get through what can be a very challenging regulatory environment in China, so his insight was quite valuable. After listening to his presentation and the discussion afterwards, it was clear that China is still interested in high growth. But this growth is no longer at any cost since there are now strict environmental regulations to be able to develop in the Suzhou Industrial Park. After a group picture with our host, we were on our way to our next firm visit, a short bus ride away.

Our next stop was Hip Fung Electronics, an electronics manufacturing service. We were lucky enough to know top management at Hip Fung from a family connection in our MBA class. They organized a wonderful visit which included a presentation, fed us lunch, and provided us a tour of the factory. The presentation detailed the history of the company and which actions have helped to increase Hip Fung’s success. It was interesting to note that once Hip Fung switched to a high mix low volume strategy, they became much more successful. We took this as another example of why lean manufacturing is so important and will only continue to become more popular. The lunch we ate was the same meal that factory workers are served each day and it was quite delicious. After a banana for dessert and the brightest lime anti-static outfits ever, we entered the factory for a tour. One of the first things we noticed was the absence of men on the assembly line floor. Women’s smaller and more nimble hands allow them to be superior at the intricate tasks required for electronics assembly. The factory was clean, organized, and appeared to have great working conditions. A few people in our group were allowed to go see the dormitories where the factory workers live. While the building was minimalist and workers slept six to a room on thin padded wood frames, the general sentiment was that the living conditions were better than expected and were very clean and well kept.

The next factory we visited was Positec, a manufacturer of machine tools and the popular Worx line. We toured both the showroom and factory and were impressed by the massive injection molding systems used to make their products. We left Positec to go visit Plantronics where we watched a presentation about the unique culture of the firm and then toured the factory. The factory had a similar look and feel to that of Hip Fung but on a larger scale and was a LEED certified campus. Plantronics had their complete service chain located in-house and maintained a strong focus on employee total well-being.

After our final visit of the day at Plantronics, we headed to the nearby McDonald’s for people to get food and bring on the bus so that we could arrive at a decent hour in Shanghai. Barely into our journey, the traffic on the freeway stopped completely. The bus driver thought it was better to avoid the traffic so he turned around in the middle of the freeway and drove off the on-ramp. After a few games of “chicken” where our bus ultimately won, we were back on a different road heading to Shanghai. We often hear Chinese people described as adaptive and flexible. This was first hand experience of that phenomenon.

Today provided our first look into the highly-used reference of China as the “factory of the world.” It was quite impressive to see the various scales and technical capacities that the companies operate at. We watched the nimble hands on the production line assemble products that will be on the shelves of retail stores when we return—and it provided that connection in the product life-cycle between production and consumption. While this might not have been a representative sample of the manufacturing facilities in China, the company visits reinforced the idea that this is good for the people. The workers work and live comfortably, and retain an image of pride and happiness.