Northeastern University (NEU) EMBA
Program Enhances Focus on Asia
 |
| Picture
left: The NEU's EMBA group in Shanghai in front of a State owned
factory where the group talked to company management and compared
management considerations in a state owned factory, a Chinese privately
owned factory and a European owned factory. |
|
Northeastern University’s
Executive MBA (EMBA) program is a part-time, globally-focused
program designed for senior level professionals with an average of
10-15 years of experience. The program uniquely combines academics with
international residencies to create an integrated learning experience.
Through the intensive 16-month program, EMBA students can gain deep
knowledge of global business that prepares them to collaborate across
cultures and compete on a global scale. Northeastern’s EMBA students
learn in a cohort, attending the same courses with the same classmates
throughout the program. Classes are held on alternating Fridays and
Saturdays, and the EMBA program begins each year in January.
EMBA students attend three mandatory global residencies as part of the
curriculum. EMBA students study in Mexico City at IPADE Business School
to experience cross-cultural business issues, as well as Washington,
D.C. to explore the dynamics of business and government. Historically,
EMBA students have participated in a European residency; however, in
2005, a decision was made to focus on business opportunities in Asia.
Runckel & Associates (www.business-in-asia.com)
was brought on board to assist Northeastern in arranging meetings and
handling logistics for this new initiative. 2006 marked the first year
where students visited Hong Kong and China as the capstone experience
of their EMBA program. Students had the opportunity to meet with
C-level executives at companies in Hong Kong and China to learn about
their business models, organizational structures, and growth
strategies.
Picture, right:
Hong Kong -
the beginning destination of the trip
|
The
2006 China residency program included 35 students along with
Northeastern University Professor, Ravi Ramamurti, and Associate Dean,
Kate Klepper. The trip began with a visit to Hong Kong, the most
international of China’s cities. EMBA students then studied areas that
have followed Hong Kong as the leaders and drivers of China’s economic
growth: first Shenzhen, and later Shanghai. The residency concluded
with a visit to Beijing. Despite its role as China’s capital and home
to a large and internationally mixed diplomatic and business
population, Beijing remains a truly China-centric city due to history,
cultural, and political factors.
Arriving in Hong Kong on a Saturday night
did not delay the program’s
educational focus as Sunday morning the group began the trip with
lectures at the hotel by a series of individuals and companies with
strong business links to the Boston area or directly to NEU.
|
First, in this vein was a presentation by Tom Hout of Boston Consulting
Group, who also serves as an Associate Professor at HK School of
Business. Hout, who spent years in Japan, has divided the last
five years between New England and Hong Kong where he focuses on Asian
business.
Among the points noted by Mr. Michelson were the following:
- American and other overseas companies choose to
invest in Hong Kong for four key reasons: the city’s pro-business
environment, its dynamic workforce, international lifestyle and key
location in the heart of Asia with unrivalled access to Mainland China.
- Hong Kong should be looked at as part of the
Pan-Pearl River Delta area which is made up of 9 provinces plus two
special administrative regions (Hong Kong and Macau).
- The city has one of the most advanced
infrastructures in the world, with a world-class airport, container
terminal, extensive road and public transport and modern, fully
digitized telecommunications system. For example, mobile phone
penetration is over 130% in HK.
- Hong Kong has low tax rates and one of the simplest
tax systems in the world
- 95% of Hong Kong’s exports are re-exports of
products produced in China
- Hong Kong hosts the most regional operations
(headquarters and other offices) in the area
- U.S ties in Hong Kong are extensive and the American
business community plays an important role in the city’s development.
- There are estimated to be 55,000 US passport holders
in Hong Kong
- There are 1,100 US companies
- 1.14 million Americans visited Hong Kong last year
Hout was followed by Mark Michelson, Associate
Director-General of Investment Promotion at Invest Hong Kong.
He focused on Hong Kong’s continuing role in attracting investment and
creating new business and investment opportunities. InvestHK was
founded in 2000. It offers free services, including extensive
general
and specific information,set-up or expansion services, networking and
matchmaking support and public relations. The Department
has nine
four-person teams focused on business sectors. Among the
points noted
by Mr. Michelson were the following:
- American and other overseas companies choose to
invest in Hong Kong for four key reasons: the city’s pro-business
environment, its dynamic workforce, international lifestyle and key
location in the heart of Asia with unrivalled access to Mainland China.
- Hong Kong should be looked at as part of the
Pan-Pearl River Delta area which is made up of 9 provinces plus two
special administrative regions (Hong Kong and Macau).
- The city has one of the most advanced
infrastructures in the world, with a world-class airport, container
terminal, extensive road and public transport and modern, fully
digitized telecommunications system. For example, mobile phone
penetration is over 130% in HK.
- Hong Kong has low tax rates and one of the simplest
tax systems in the world
- 95% of Hong Kong’s exports are re-exports of
products produced in China
- Hong Kong hosts the most regional operations
(headquarters and other offices) in the area
- U.S ties in Hong Kong are extensive and the American
business community plays an important role in the city’s development.
- There are estimated to be 55,000 US passport holders
in Hong Kong
- There are 1,100 US companies
- 1.14 million Americans visited Hong Kong last year
Further highlights of the Hong Kong program
were:
His Honour Jeffrey
Lam, Member of the Hong Kong
Legislative Council and also a prominent Hong Kong businessman who
produces OEM toys for Hasbro and others, spoke about Hong Kong’s
political evolution. He argued that gradual reform is in the best
interests of all and that stability and building a step-by-step reform
process would help progress and economic development.
|
|
Picture, left: The
EMBA group in front of a Chinese locomotive at Yantian port painted in
Hasbro colors and with Hasbro trademarks. Hasbro is leading in
encouraging Chinese authorities to utilize train transportation of
containers to help conserve oil and lessen pollution
|
Picture,
Right: Chris Runckel, President of Runckel & Associates who helped
organized the trip, in front of Hasbro train
|
Joel Spevack, President of Hasbro (Far East) and Eddie McPhillips, VP
for Logistics of Hasbro (Far East) then discussed Hasbro’s long
relationship with Hong Kong and the Pearl River Delta region of
China. Hasbro (Far East) every year designs and buys more toys
from Chinese companies than any U.S. company. Hasbro follows a model
similar to Nike and other major consumer companies in that they do not
own the factories but instead work with Hong Kong and other local owned
factories that produce product to their specifications. Despite
this arrangement, Hasbro (Far East) still maintains a considerable
presence in Hong Kong and the surrounding area. Although there are only
four expatriate employees managing operations there are a total of 700
employees, 450 who are in Hong Kong and the remainder in China.
Of the 700 total employees, 200 are in the engineering division, 100 in
the design team, and 130 in quality control and 150 in logistics.
|
The
group, most of whom were taking the first visit to China, toured
Hong Kong that afternoon. The following morning, the group
traveled to Shenzhen to visit Jetta
Company Limited, which Hasbro characterizes as the most
professional toy maker in the world. The company was founded in
1977 in Hong Kong and started in China in 1983. (click here
for full
company history). Currently the
company has 5 major Chinese factories with over 587 injection molding
machines occupying more than 2.5 million square feet of production
space and employing a workforce of over 40,000 employees at peak
season. Jetta Company Limited describes itself as one of the
world’s largest OEM toymakers.
In the afternoon, the group visited Yantian
International
Container Port, owned by Hutchinson Port Holdings Group.
Hutchinson Port Holdings Group is one of the largest port operators in
the world, operating 12-14% of total output. Yantian
International Container Port, only founded in 1994, has grown to become
one of the leading ports in China. Currently, the port handles
over 10 million containers a year. Kenneth Tse, Director and
General Manager of the port, noted that his port equates in terms of
containers handled with U.S. ports like Long Beach and L.A. He
said that Yantian International Container Port has all the key elements
of a successful port.
|
|
|
| Picture, above and left: The EMBA group
touring a Finnish-owned company, Helkama Bica (Shanghai) Co., Ltd.
which makes marine cable for the Chinese Shipping Industry |
|
Picture,
right: Yantian International Container Port
|
|
These
are:
- Deep Water
- Cargo base
- Open Door Policy
- Experienced International Management
|
Exports
are the dominant shipments handled by the port with an average
of ten containers exported through Yantian for every container
imported. Top exports from the port are:
- Toys
- Clothes
- Shoes
- Furniture
|
Picture, above and
leaf: The group met with Richard li, Chairman and CEO of the Pacific
Century Group in Hong Kong
|
|
The
next morning, the group met with Richard Li, Chairman
and Chief Executive of the Pacific
Century Group, Chairman of Pacific
Century Premium Developments Limited (PCPD), Chairman of
Singapore-based Pacific Century Regional Developments Limited and
Founder of NOW TV. Richard
and Janice Lee, Executive Vice
President for Marketing and Content Development of NOW TV (an
abbreviation for Networks of the World) is a 24-hour pay TV service in
Hong Kong. The service is transmitted through its Broadband
network. Now TV was launched in September 2003 and is operated by
Pacific Century Cyberworks Limited (PCCW), which is also the largest
fixed telephone line company in Hong Kong through its subsidiary, PCCW
VOD Limited. According to Ms. Lee and based on the most current
numbers, NOW TV is currently tied with the other major cable network
provider in Hong Kong and will exceed that company as it continues to
grow its user base, which is now over 750,000 users. This
presentation was a tremendous hit with the students, who really warmed
to the topic and peppered Ms. Lee and her boss on the technology and on
the business aspects of making this new technology a success both in
Hong Kong and perhaps with partners in other areas in the region.
|
Later, Hong Kong’s role as a financial services hub for Asia was
emphasized in presentations at Morgan Stanley. One of NEU’s
strengths is the active involvement of Alumni who have continued to
value and to nurture their relationship with Northeastern
University. David Chu, who following study at NEU gained success
in Hong Kong and China business and served for years as a member of
Hong Kong’s legislative council (LEGCO), hosted the students for lunch
at the Deep Water Bay Golf Club. Over the two-hour lunch, Mr. Chu
answered EMBA participant questions noting that China offers a large
and diverse range of opportunities the rising EMBA’s should seek out
and engage. He noted that although “the hardware” in China,
especially in the Eastern coastal areas, is reaching world standards,
the “software” in many Chinese minds still needs to progress. He
noted weaknesses in intellectual property protection, enforcement of
laws at the local level, in some cases corruption and the need for EMBA
participants to both do their homework but also to keep an open mind
and be prepared to re-examine their current ideas and initial
conceptions as many would not be successful in China. Mr. Chu
spent nearly over two hours answering EMBA participants’ questions with
very well conceived and articulated observations.
Pictures, above and
right:
David Chu, who
following study at NEU gained success
in Hong Kong and China business and served for years as a member of
Hong Kong’s legislative council (LEGCO), hosted the students for lunch
at the Deep Water Bay Golf Club.
|
|
Highlights of the Shanghai program were presentations by General
Electric, whose growing China sales now exceed 5 billion dollars, and a
full day program involving Chinese privately owned, state-owned and
foreign invested companies hosted at Shanghai
Fengpu Industrial Park. The EMBA group, most of whom had
never visited
China, marveled at the roads, high-rises and bustle that is modern
Shanghai.
Picture, above :
Chris Runckel with Jack Perkowski, Chairman of Asimco
|
|
Beijing was the final stop on the trip and the first portion of the
visit fell on the weekend, offering an opportunity to view some of the
history and sites that make Beijing such a world renowned tourist
destination. These included Tiananmen Square, the Forbidden City,
The Great Wall and the Temple of Heaven. Beijing also provided a
chance to reflect on the wide range of exposure most of the visitors
had gained in the last two weeks both on China and the challenges and
opportunities it represents.
,In this vein, the group was
immensely appreciative of the presentation by Jack Perkowski, Chairman
of Asimco, one of China’s largest
auto parts manufactuers. Mr.
Perkowski, an internationally known expert on doing business in China,
spoke about his experience in conceiving and starting-up and operating
Asimco and of the lessons he learned in doing business in China.
|
Among the points noted:
- You do not have to have Chinese language
capabilities to become a success in business in China, although
speaking and understanding some Chinese may definitely make your life
in China more enjoyable and easier.
- Localization of management is a critical requirement
for any company doing business in China. Companies with large
numbers of foreigners may not only be more costly businesses to
operate, also will not understand key considerations that will make the
business run smoothly.
- Just as companies must localize their management,
increasingly they will need to move beyond the major centers which are
more westernized, like Hong Kong, Shanghai, Shenzhen, and Guangzhou, to
second and third tier cities in China where learning to compete and to
work with Chinese private businesses is increasingly the key issue.
- Chinese managers in general have a different and
lower cost perspectives than their western counterparts.
- Those who believe that China cannot produce products
with higher value added and increasing complexity will be proved
wrong. Chinese goods will increasingly compete not only in price
but also in quality and technical sophistication with their western
produced competitors.
- For most businesses, close connections at the
National level in the government are not necessary.
Two weeks is not a long time and none of the EMBA group
started the
visit a novice and ended an expert. What all did achieve,
however, is an appreciation for China, its complexity, its cultural
strengths and its economic vitality. Not all in the group will
return but many will long remember and quite probably profit from the
experience of the visit and the observations of the many excellent
speakers.
About the
Author:
Christopher W. Runckel, a
former senior US diplomat who served in many counties in Asia, is a
graduate of the University of Oregon and Lewis an Clark Law School. He
served as Deputy General Counsel of President Gerald Ford's
Presidential Clemency Board. Mr. Runckel is the principal and founder
of Runckel
& Associates, a Portland, Oregon based consulting
company that assists businesses expand business opportunities in Asia.
(www. business-in-asia.com)
Until April of 1999, Mr. Runckel was
Minister-Counselor of the US Embassy in Beijing, China. Mr. Runckel
lived and worked in Thailand for over six years. He was the first
permanently assigned U.S. diplomat to return to Vietnam after the
Vietnam War. In 1997, he was awarded the U.S. Department of States
highest award for service, the Distinguished Honor Award, for his
contribution to improving U.S.-Vietnam relations. Mr. Runckel is one of
only two non-Ambassadors to receive this award in the 200-year history
of the U.S.diplomatic service.
|
