Posts filed under 'India'
Today we began our final day of company visits under stormy skies.
We left the hotel just after 8:00 am and headed to our first company visit at Wockhardt Hospital. We arrived at Wockhardt around 9:30 and our hosts brought us into the conference room on the first floor to give us a presentation outlining the details of their operation. During the presentation, which lasted about half an hour, we learned that the hospital currently has 16 different locations across India and expects to bring this number up to 31 by the end of 2010. The Mumbai hospital where we met today currently has space to serve 220 patients overnight with and expansion in construction to increase this number to almost 600.
The presentation highlighted some of the difficulties of the health care industry in India. These include labor shortages for nurses and doctors as well as a low level of insurance coverage across the country. The expanding middle and upper class in India as well as an increasing literacy rate are only putting more pressure on the hospital and health care industry to expand. There are 1.1 hospital beds per 1000 in India which is very low compared to more developed countries. The European Union has 8 beds per 1000 in the population.
One of the more interesting discussion topics of the meeting centered on medical tourism and the current and forecasted effect it might have on the hospital. Currently medical tourism accounts for .9% of total revenue at the location we visited but this figure is forecasted to be 2.5% by 2012. Wockhardt is attractive to foreigners for care because they offer lower prices for procedures and experienced doctors. The video we watched included testimonials from several foreigners expressing their satisfaction with their stay in India.
After the briefing we received in the conference room we were invited to tour the facility. The tour began in the billing where the hospital helps process between 450 and 500 patients per day. Our next stop was the outpatient facility on the first floor where we learned about the rotation of doctors and viewed an outpatient room- each of which we equipped with a computer. Upstairs we were shown both a typical Indian room (usually 1-5 night stay) and then an international room for medical tourists (usually a 20 night stay). The international rooms were much nicer. They offer a comfortable space for patients to receive medical care. Space is provided for a family member to sleep with the patient and internet access is also provided. The tour of the hospital as well as the presentation gave us a better understanding of the similarities and differences between health care in the United Sates and India.
The bus ride today proved to be quite interesting with the local MBA students as our guides. They gave us a quick lesson in speaking the Hindi language which included common sayings such as ‘hello’ and ‘goodbye’ as well as the proper way to count to ten. We then played an interactive bus game to keep us entertained on our way to the next company. The second firm visit of the day was with Mandhana Ind. Ltd. The meeting started out with a fantastic expression of hospitality when Mandhana gave each of us a personalized writing pen.
Mandhana is a multi-divisional textile company spread out over many geographical locations. They have grown from a small shop in 1984 into one of the fastest growing textile manufacturers in India, as well as having plants spread out over roughly 30 countries. Today they incorporate long chains of workers into every manufacturing process required by the textile industry including: designing, weaving, dying, and processing. The products that they provide mostly cater to Asian and European countries but they will soon expand into the United States market, specifically New York. Mandhana specializes in high-end textiles and garments.
Certain aspects of Manhana that contribute to their success include product variety and quality. They offer innovative products with qualities like water proof, mosquito repellant, and quick dry. Additionally, they have a very quick production rate from converting raw materials into the finalized product. In order to ensure their image of excellence they have quality processes in all of their manufacturing processes. Proof of their success can be seen by the numerous awards they have won for numerous achievements including exceptional growth in exports. It is obvious that Manhana is a highly desirable company to work for since they have one of the lowest employee turnaround rates in the country. The typical employee stays with the company for about six or seven years.
This company visit ended with an interesting tour of their offices. The rooms that we visited included: merchandising, style, board rooms, textiles, and then finally the lunch café. The superiority of their product design was displayed perfectly in their artistically designed offices. After a quick lunch we headed back to the bus and continued on with the day.
The final company visit of the trip was The Times Group which is responsible for circulating the most popular newspaper in the world The India Times which currently has 3.5 million papers (37% market share) in circulation daily. In addition to the flagship newspaper, The Times Group also publishes the 2nd most popular business newspaper, The Economic Times (750,000 in circulation – 84% market share). This paper is 2nd in the world only to the Wall Street Journal in the business market.
The opening of our presentation focused on the difficulty of marketing in the modern day due to the fragmentation of media. There are so many sources for news that newspapers are competing not only with other newspapers but for the customer’s time. We learned a little bit about newer trends in marketing and advertising. Newer ads are becoming shorter and faster which takes up less time of a potential consumer’s day. We were taught a little more about marketing from a distinct perspective that was straightforward and easy to understand. The value of the presentation goes beyond its application at The Times Group and will be useful as we all set out to brand and differentiate ourselves or our companies in the future.
The concept of experiential marketing was also presented. Customers today are bombarded with multimedia throughout the day. Marketing efforts that resonate with the consumer and provide an experience will be more effective in creating the engaged reach desired. The Times Group long ago decided that their primary focus for revenue would be advertising in place of circulation revenue. For this reason the paper can be purchased in 2008 daily for 4 rupees (about 10 cents).
Current advertising spending annually in India is $3.6 billion annually. This is much smaller than the $162 billion in the United States but is expected to increase over the next few years due to increasing literacy rates. The company is promoting reading education in schools by providing newspapers to the classrooms. Overall the presentation provided a nice bookend to the company visits for the trip.
There are many business lessons from all the presentations today that will be useful as we move through our professional careers.
Following our final company visit we stopped at the Gateway to India, a monument created several centuries ago to welcome the Queen of England (Queen Mary) to India for her first visit to this British Empire oupost. The group stopped to take some group pictures and mingle and enjoy the end of our final day of company visits for Chindia 2008.
June 18th, 2008
A while back Pierre and Kyle posted on the topic of cheap cars in India and the market for them. Click HERE to refer back to their posts.
Periodic Cal Poly MBA Trip blog follower Sin Yaw Wang then jumped into the discussion and raised the following point:
The car is way too expensive for India that, by the way, does not have the road system for more cars. What India should have developed is an electric bicycle industry like China. At US $300 each for high-end model, they are (more) affordable and easier to manufacture. They also pollute much less.
Of course, they also make less money for companies like Tata. Hmm, what’s good for the company is not for the country. Maybe that’s why there should be a stronger government. Oh, never mind, that will be China.
Today’s WSJ contains a nice article on his point, Riding Two-Wheelers in India: Honda Bets the Middle Class Will Chose Its Motorcycles Over Rivals’ Cheap Cars.
The article points out that while most of the world’s auto global giants are rushing to supply low-cost cars to the masses in India, Honda is taking another route and focusing on motorcycles. I would loved to have been in the board rooms listening to the debate and discussion on whether to go car, bike or motorcycle in India.
Time to buy a few shares of Honda stock?
June 6th, 2008
Some of you have recently asked me what to do with your passports, particularly in China. Carry them on your person or other?
I can’t/won’t advise you on this. This is your call to investigate and make. For myself, I will likely carry a copy of my passport and visa on me, not the original. I will also carry with me a copy of the Trip Information Sheet and my airline ticket so that if I am stopped I can pull out a document that verifies what I tell people as to why I am in China. There is risk in my strategy. I may find that they don’t find this acceptable. So you should not assume that my way is the only way or right way. Everybody is responsible for their own selves on this issue on this trip.
See this recent good CLB post on this very topic, Is That A Passport In Your Pants or Are You Just Happy To See Me? Thanks, Dan Harris. As always, you have a way with titles for blog posts, of which I admittedly used verbatim in this post to grab my own student’s attention.
As I have mentioned in one of our recent predeparture sessions, China is cracking down on expats with the wrong or expired visa in advance of the Olympics. There are a number of theories why they are doing this. I won’t go into that in detail here, but in short, my own view is that they are coupling the Olympics with visa issuance and renewal to find out who the “gamers” are in their country that are not playing by the rules, paying taxes, starting unregistered firms, to get a handle on who is legitimately there, etc., and, they are doing this as part of a fear of terrorism in lieu of the upcoming Olympics. Whatever the case, this is an issue to take seriously.
See, e.g., the below email excerpt I recently received from one of our MBA alumni now living and working in China where he/she describes a situation that is even more heavy handed than I realized:
The visa situation is horrible leading up to the Olypmics. The government is going to the [___ citizen] homes and trying to take away their visa by showing they are on the wrong type (i.e., working with a tourist visa). I got mine before these problems. I was on a student visa and now on a business visit visa for work. It was easier to call me an “internship” to get the visa. When I need to renew it might be difficult. My _____[omitted] company is trying to get a license here and get him/her a working visa but he/she is having difficulties so he/she keeps going to other countries to get a tourist visa. We have had guests who had a lot of problems, it is hurting our business. Last week _______ [omitted] came and spoke to ______[omitted name] [and us] because the police are calling people and asking questions to find reason to deport them. It is crazy here. They have pulled over two of my foreign friends and taken away their scooters and tried to take their passports.
As you can see, the Chinese don’t waste time endlessly debating visa, passport and immigration issues like we do in the US and Washington D.C. They make a decision, execute and get it done. Don’t blame them. They are only enforcing the laws that have been on their books for some time which hoards of companies and expats were violating en masse, but now said expats are crying that the enforcement rules have changed. Happens all the time in regulatory environments across the globe. Further, in terms of an checkpoint, or an opportunity to create a checkpoint via the Olympics, the Chinese strategy here is pretty darn effective and efficient, in my view.
And for cryin’ out loud, folks, if you DO carry your original passport on your person or in your backpack (can easily be cut open with a knife from behind), do NOT lose it or let it get it stolen!! Per the FAQ document, if your passport is lost or stolen I can do nothing for you other than drop you off at the embassy or consulate to solve this problem (plan for it to take a few days), you are on your own, and the rest of us move on. Any extra expense in you catching up with us will be yours to incur.
Take this issue seriously! Toto, we are not in Kansas anymore.
June 6th, 2008
I have not written nearly enough about India on this blog, not because I am not interested and fascinated by the place, but because I just don’t know India; I only know a bit about China.
This short 60 Minutes segment, Out of India, is a required assignment for you to watch.
You will enjoy this video and will learn a lot. This segment also builds nicely on Mr. Asnani’s excellent talk with you a few weeks ago about his ecountant business, and, the call center in India we will also visit.
See also this related Wall Street Journal article that just came out, In India Parents Become Part of the Picture for Outsourcing Firms. Fascinating employee recruitment development, retention and HR issues are highlighted in this article as it applies to the outsourcing industry in India and the above video.
The world today is an amazing place. I can’t think of a better or more exciting time to be alive and in business.
Students, your thoughts?
May 28th, 2008
On the trip you will kick yourself when you find out a classmate bought the same thing you did for much less. You will have the chance to practice the negotiating skills Dr. Peach taught you first hand. A hat tip to my friend and one of the best negotiators I have had the pleasure to work with, John Wu, for this video lead from the classic film featuring a young hottie named Harrison Ford, Gallipoli (battle) (click here for film info). Has direct relevance to China and India. Click HERE to check it out. And yes, it would be totally uncool to ask the merchant for your money back like the fellows in this clip when you were the one who was a poor negotiator.
Professor Carr July 29, 2008 addendum: Each year I try to take students, or at least give them the opportunity to go on their own, to the Silk Market in Beijing so they can practice their (usually lame, undeveloped and passive) Western negotiation skills. See this four minute must see Wall Street Journal video filmed at this very venue. This will give you a glimpse of what you are in for.
May 13th, 2008
In your trip prep materials I have given you lots of info about business cards. The who, what, when, why behind them, and how you present yourself with a business card (two hands) when the opportunity arises. If you have never before had or used a business card, this is an opportunity for you to practice and step up your game. Check out this recent WSJ article, Ensuring your Business Cards Mean Business. Great article. Great points (most I agree with; others depend on the person, job, industry, etc.).
Addendum note: Titles are a big thing in Asia. If you don’t have one on your card, create one, but, of course, it needs to be accurate and truthful. For example, Cal Poly MBA Student is/can be a title.
If it’s too late and you already made your cards, don’t sweat it. Live and learn. I have had mine a long time and there are a few things I need to change as well; I just need the time to get to it.
As an aside, here is the university policy on business cards and using the Cal Poly name and mark on your card that has been conveyed to me, as some of you have stopped by asking what you can/cannot do in creating your cards:
You can give yourself a title on your card such as “Cal Poly MBA Student (or Candidate)” or “MS in IT Student (or Candidate)”.
Other than that, you cannot use the Cal Poly name or mark on your card. It’s called IP folks, and I don’t make the rules.
The above is consistent with what some other schools do and allow, while others allow you to use the name and mark.
Re: the other aspects of the design of your card, look, feel, color(s), etc. are up to you to make it as fancy or keep it as simple and clean looking as you wish. My own view and bias is that as long as the card has the critical and current contact info and the person’s name and title with decent font and paper, as to the rest of it ‘less is more’, as the saying goes.
By the way, sometime during the trip, I will collect a business card from each of you, lay them all out on a table, where we can all see and study how the other has tried to brand themselves. I won’t/don’t require you to make and buy one, but if you go on a business trip like this and don’t have one, to be candid, you really need to go back and retake that grad or undergrad marketing class you took and look over that material on product differentiation, as to me this is a sign that you were not paying attention in the class and/or doing the required reading, as this is Marketing 101. And if you can’t/won’t even humbly brand your own self for crying out loud, I would have a hard time understanding how you will excel at branding, publicizing and differentiating the firm you work for, as it will expect you to do.
May 12th, 2008
Oh really?
And let me guess … all the products you buy are made in America and there is no value in seeing where the products we buy are made, right? Or the investment funds your stock broker dumps your money into will have no cross-border asset investments tied to China or India, right?
Hmmmm.
In any event, I think most folks get it, but I do overhear this comment a few times each year. In fact, a few weeks ago I had someone in my office making the very argument that is the heading of this post and that if they had to go on the trip and “bear” it in order to graduate on an accelerated basis, they would buck up and make it through.
Double-hmmmm.
I understand where people are coming from and they mean well when they make such statements, and I am pleased they remain outward looking enough to still enroll in the course and undertake this field trip. Perhaps what they are really saying is, “I have no desire to be an expat.”
Fair enough, as the expat life is not for everybody. But I still push back against said statements, and will continue to do so, because I think said statements miss an important point and shows a disconnect with what is happening in the world and about what the term “international” means in the year 2008.
To reiterate what I noted in our early informations sessions — the goal of the trip is to not turn you into an expat, although that may be the natural result of this experience for some.
Rather, some of the main goals are:
1. To better understand how the world’s business, economic, political and social puzzle fit together. You can’t do that from a book or by having coffee at Starbucks in SLO town, LA or the SF Bay area.
2. To better understand how, even if you/your firm elects to focus inward and continue to emphasize only California or US markets, there is a high probability your competition will use and leverage China and/or India against you. Thus, if you remain on the sideline, in time, your competition will kick your butt, there, or here. For every person who has made the above statement, I can point to one of their competitors who are somehow leveraging China or India to their detriment.
3. This is a big one. You can/will return to the US and … surprise! … you will be better at your business here at home because you traveled to places like India and China to study business, to see what is happening there first hand which will in turn help you separate fact from urban legend, and you gain a deeper understanding of why. If you really pay attention and ask lots of questions and go into both countries with total humility (meaning let them do the talking and you just listen), you might even pick up some best business practices from the Chinese or Indians.
4. How do you know the day won’t come where your boss walks in your office and says, “I need you to take the next red-eye to Guangzhou or New Delhi” and he/she picked you because he/she heard you have been to one of these places before on business? Will you jump at the chance and opportunity of a lifetime and in turn become the firm resident expert on China or India, or, will you run for the hills and miss an opportunity that may never come your way again?
5. Finally, one day you might decide you hate your job and working for “the man” and decide to start your own business. You will need capital to do that. You will find that if your idea is decent, potential investors will look at your business plan and ask, “why is there nothing global or relating to global expansion or strategy or how to respond to the global competition here?”
I could go on, but you get the picture and in summary, read this post, “Top Ten Reasons Why China Matters To You” from pundit Thomas Barnett. He says it better than I ever could (or have tried).
His list highlights why in the year 2008, an educated person cannot convincingly argue, “I am not international” or “I am not going to work international.” If you make such a statement, be aware that there are a number of people in the world that will look at you askance and even question your intelligence and the value of your Cal Poly degree and/or what you learned here (as an undergrad or grad student).
At least I would ….
To close, here is a great quote from Coca-Cola’s current CEO, E. Neville Isdell (Biz Ed, May/June 2008, pages 19-20):
Question by interviewer: If you were to come into a business classroom for a day, what would you want to say to business students?
Answer: I would want to teach students to understand different backgrounds, cultures, religions, and perspectives, even if those perspectives are antithetical to their own. If student’s don’t listen to and understand other people’s points of view, it creates misinterpretation and confrontation. It certainly will cause them to lose business opportunities. They should never give up their own principles, but they need to be able to find common ground. It’s what all good business leaders do to move business forward. Its’ what all good negotiators do to come to solutions.
Prof. Carr May 5, 2008 addendum: See this related article that just appeared in the NY Times, In Inner Mongolia, Pushing Architecture’s Outer Limits. The money quote in the article (as I have also had students with an architecture background argue that “they” don’t need to know or be “international”):
Indeed, Mr. Ai said, pointing to the architects who had traveled thousands of miles looking for work - “These days, it’s the architects, dressed in black, who are the tribe of nomads.”
Read the article, and you will see why.
May 1st, 2008
This is a follow-up to my previous post on getting a suit made in China — Baby, If You Look Good, You Play Good.
Check out this recent March 29, 2008 WSJ article that points out that while high-end Chinese made suits may not yet fully be at the level of high-end Italian made suits, the gap has closed.
This is an example of how Westerners can/will sit back with the status quo, “God, we are good. There is no way the Chinese (or Indians) can touch us or our products or processing.” And then they wake up one day, find that the Chinese are making high end suits that can compete, and the next day other high end items such as computers, cars and the like. If you have been monitoring recent moves by the CCP Government (e.g., click HERE and check out this recent China Law Blog post), the government has made it clear that they will make things easy for firms that seek to move up the manufacturing value chain, while for those who wish to continue to focus on low end goods such as textiles and rubber duckies things will only become more difficult in terms of tax breaks, allowed FDI investment, etc.
Or, if you are a Brit, you might wake up one day and your former colonies, first the US (Ford Motor Co.) and then India, now own your once crown jewel known as Jaguar and Range Rover. Oh, wait, that already happened. Click HERE to read about what many thought was impossible for something like this to occur. Good for India.
I am not saying will all happen tomorrow, but I am saying over time, it will happen more and more and more. The lesson is that those in business who rest on their laurels and own beliefs of infallibility and talent, will die.
Eric K., you are right (for now) in your post, “Would Your Drive This?” … China now makes crappy cars and nobody here will touch them, but I think you would be remiss to assume that China will always be making crappy cars and/or components.
For example, you may be too young to remember this, but not too long ago most Americans scoffed at goods coming from Hong Kong, South Korea, Japan and Taiwan (now they come from China; those other listed countries have moved up the production value chain and if/when you visit them you will see this immediately upon getting off the plane). Now, a number of firms in those listed countries make products that are quite good and people from those same American industries that scoffed are like boxers who have had their butts kicked in the ring and are standing around asking, “What just happened?” I see no reason why that pattern will not repeat itself in China.
Another thing to think about — what business opportunities does a car market in its infancy in a country such as China present to foreign and domestic firms?
For example, nobody can stop the Chinese from wanting their own car (materialism is by no means a foreign concept), and if anyone wants to sell cars in said market they will have to take their lower per capita income into account and be able to sell a car that is much cheaper than what is sold in the West. Further, with the CCP government leaning on said industry, the pressure will really be on to create and produce a lot of cars that are more “green” than the current SUVs and big trucks we see driving around the Cal Poly campus, in part because the government simply cannot import enough oil to keep its population driving cars that get only 16-18 MPG and if it wants to survive, it will need to find a way to foster the development of cars that can do better in this regard.
In short, I predict we will therefore see some new and interesting and perhaps even incredible technologies coming out of China (or India) in the auto industry in the next 10 to 20 years that cannot take place in the west due to our lobbyists, unions, special interest groups needing their piece of the pie, the high cost of labor here, etc. I.e., per economic theory, are the rent seekers in the West just too powerful and establish to overcome and implement change and new technologies?
I am not alone in asking this question. Jack Perkowski, an American in the auto parts business in China supplying parts to their domestic industry (not for export) and the author of the very good book that just came out, Managing the Dragon: How I’m Building a Billion-Dollar Business in China, makes this very same point. See also this NY Times piece that echoes a similar tune, A Chevy With an Engine from China.
If you think the future I am describing is unlikely, I would love to here why you disagree. But please, give me a reason more substantive than the usual, “Man we are just that good” spiel. No reasonable global person buys that anymore.
As Bob Dylan sang, “These Times Are A Changin” ….
April 27th, 2008
You may not know who Tammy Wynette is, the lady that made this song famous. I saw her perform this song live during the Stockville County Fair in Stockville, Nebraska (population 57). I was a twitter-paited hormonal boy who thought he was in love with this super star country singer and beauty. I wanted her to divorce her then alcoholic and abusive husband, George Jones, another country singing legend, and marry 11 year old me right then and there. Oh, if she could only be mine.
C’mon. Stop laughing. I will take Tammy Wynette over the Tiger Beat or People magazine ding-dong you swooned over any day.
But this post has nothing to do with the break-up of joint ventures gone bad in China, but a lot to do with marital divorces.
Check out this April 1, 2008 WSJ article, Women MBAs More Likely to Divorce Than Men (same for women with law and medical degrees).
Gents and Ladies, what say you? Fact or fiction?
Are you immune from these statistical probabilities? If so, how do you know that will be the case? How are you planning for this, today, to minimize the chances of this happening to good ol’ you?
How will you lead and manage employees, which statistically will be half of them, that go will go through this type of a life changing experience, so that they can continue to be as effective for you/the firm as possible while and as they heal?
And fellas, let me really open a can of worms here and ask you this — are we a major part of the problem for such a trend? Our manhood aside, are men threatened by intelligent, driven, confident, successful, take-no-prisoners women? Do men unconsciously put pressure on the women they love? E.g., men expect them to look like a supermodel 24/7, stay forever young, work and help the clan make a high income, raise the kids, let them watch our Monday night football and March Madness with the boys while the doting wife serves drinks, pizza and cleans the house, etc. Be honest. If you are the man foolish enough to go down in writing here and argue, “Well, I would never do that, as I am one of those enlightened, sensitive men,” which of your female colleagues and classmates do you think will jump out of her chair next to you in class and strangle you for arguing that you are different than the other bizillion cave men that came before you (and me)?
Wait. I just realized there really is a China connection here. The Chinese have a saying: “Women hold up half the sky.” True or false? And what does this mean? Maybe you can ask some of the women in China you will meet what this means to them.
April 23rd, 2008
Submitted By: Adam Windham
Below is a YouTube video titled “Shift Happens” that I came across recently. It illustrates a lot of issues regarding globalization, technological advancement and the exponential times we live in. It’s hard to comment too much without giving away the video, so please watch it before you read my, or anyone else’s comments.
I can’t say whether or not these facts are statistically accurate or not, and my guess would be that they’re probably not. What I got out of this video was the message that times are changing. And while the numbers might not be 100% correct, the message is clear and it really makes you think about what kind of world will we be living in 10, 15 or 20 years from now. The thing that got to me the most was the line “we are educating our kids for jobs that don’t exist, using technologies that haven’t been invented, to solve problems we don’t know are problems yet.”
We can see this effect of rapid globalization in business and how companies respond to new information and opportunities. The ones that are successful are able to adapt to change and deal with new and emerging business environments … China anyone?
I thought it was a really interesting video and welcome any comments.
April 16th, 2008
Next Posts
Previous Posts
