Final Post

1. Ethical Issues in My Profession

When looking at doing business in China you have to be aware of the differences in how business is done. It is important to look at the ethics of the country. Some issues that might be face that are very different from the United States are the working conditions. After seeing factories in China is very easy to see differences in this area. The working conditions of these factories were very poor. It seemed that they were not regulated. If you were to outsource production to China you would run a high risk of having poor working conditions under your compnies name. I noticed that it was predominantly male, which would not be the case in the United States. We have moved towards more gender equality in the workplace. Wages are also incredibly low which allows the price to be lower. This is something you need to be aware of when competing against Chinese based businesses. They will be able to provide a lower price to customers because they have less cost as a whole. These along with many others are reasons companies outsource to China. You cannot do business the same way in the United States as you can in China. On the other hand I believe that is why the standard of living is a lot higher in the United States than in China.

 

2. Educational Breadth as Professional Development

After visiting China and being able to really look at some global companies I realized how important it is to expand your thinking about business passed just the United States. It seems so necessary now to be educated not just in business, but in global business. To understand other cultures and how business is done in other countries is key to being a successful business man or woman. The classroom experience in all studies should be expanded outside of the classroom. My two economics classes this year were focused on specifics in the United States. It would be interesting to take an economics course that deals with another country to ba ale to compare the two. Students should not be limited to studying in just the United States, especially business students. It is going to be more meaningful, I think, to take business courses that deal with global markets rather than domestic ones. Understand other cultures should be a priority. In the future I plan on taking more classes that focus more globally, such as global economics and other international business classes. I also plan on taking business courses when I study abroad. I think this will be very interesting because it will be taught by someone who understands how business works in a foreign country very well. After this trip I am excited to learn more about international business as a whole.

 

3. Lifelong Learning, Continuing Education as Professional Development

While on the company visits we were able to talk to a lot of people who were higher up at the companies we visited. Many of these people began in school as engineering majors and as they entered the workforce they learn many new aspects as they rose n the ranks. For example, the speaker at Secoo began as an engineer and had to learn so much about business and fashion on the job. He said that this was one of his favorite part about the job, being able to expand his knowledge after his schooling was over. He explained how the changing technology kept all businesses on their toes in China. The people responsible for product design and factory operations, a lot of the people we met, have to pay close attention to changing technologies to stay relevant in the market. You will not be able to compete with other companies in the future if you are falling behind on the technological advances. They need to be able to learn how to use this technology to their advantage and then be able to teach all of the workers the technology. You are never fully done learning the information needed to succeed. The moment you think you don’t need to learn anything more to compete is the day you stop competing. In such a tight market it is so important to be able to keep up and be technological innovators.

 

4. The Social Environment and Professional Life

After being in China for two weeks there was one major difference I could see between the people of China and the people of the United States. The Chinese people seem to know a lot more about other countries, including the United States, than the people of the United States. There were so many new stories on the TV about the United States and European countries than the United States had of other countries. The people of China seem to be very cultured. Most of the students we met were able to speak at least two if not three or more languages. They were also keener on current events in the United States then most Americans are in China. So many of the students on the trip, including myself, had no idea of what was going on in China at the time. It is important to have an understanding of what is going on globally. Especially when it comes to business. Global business is all about find your niche in a certain country. To do this you need to be fully aware of what is occurring in these countries so that you and your business can act accordingly. You need to know the how a country is governed and how businesses are maintain in these countries. Even at home the global market is affecting you every day even if you didn’t know it, such as prices of gasoline and other products. It is important to be aware of the global economy.

 

5. Functioning on Multi-Disciplinary Teams

In all of my business courses I have had at the University of Pittsburgh so far we were taught how important team work is in the workforce. After observing companies in China this makes complete sense. Everything is done in teams. Whether it is developing a new product or buying parts from another company it is all done using proper teamwork and communication. At China Telecom and Hong Kong Science and Technology Park where we saw the start-up companies you could really see how teamwork was used. It was usually a group of 10 to 20 different people from different educational backgrounds, mostly business and engineering. The engineers would have to explain what they were doing to the business people who would be selling the product. The business people would have to communicate back to the engineers all the logistics and what the customer is looking for. The communication had to be constant or the business would slow or fail. This is what I got out of hearing the different speakers at these two sites. It is also important to be able to communicate with business from other parts of the world to expand your company and sell product internationally. This can be challenging especially with the language barrier of some countries. It is also very hard to sell a product in another country if you cannot go there and understand how business works there. Communicating internationally all goes back to understanding how business works in other countries. If you understand this it will be easier to communicate and work with other countries.

 

May 15th; Hong Kong

Today when we woke up all we had to do was go to the conference room in our hotel for a presentation on doing business in China. Our speaker, Leo, was very knowledgeable and passionate about the subject. He spoke very highly of doing business in China and denied many of the stereotypes about it. He believed that China was very willing to work with different businesses and had a good, open attitude towards doing so. He also stated that China became an open market for themselves. They saw that they needed to open up to the world market to survive in this day and age. He described China not as one market, but as a bunch of different sub markets. They can not be treated as a whole and each market has many aspects that differ from the other. He spoke very highly of China being E-ready, meaning that China can take on all of these new technologies of the future and that there will be massive markets opening up surrounding that topic. All in all in changed the way that I saw business in China; as a closed place that is very difficult to do business in. To be a global company is to do business in China.

After our lecture we took a bus up to Victoria’s Peak which was the highest point in Hong Kong. Our tour guide referred to it as the Beverly Hills of Hong Kong. The pries for houses and apartments were ridiculously high. Once we got to the top of the peak you could see exactly why. It looked over all of Hong Kong and it was amazing. The best pictures I took on the entire trip were on the peak. you could see for miles and miles over the mountains and down on the city.  You could look over the fifth tallest building in the world. While we were up there you could see a huge rain cloud moving in over the city. The view was amazing.

After an hour at the peak we drove back down the mountain and to a restaurant that was at the top of a hotel that looked over the city. This was our closing dinner where we were to present our projects. Before we presented we ate dinner. I had one of the best steaks I have had in a long time. It was a great way to end the trip as a whole. When we got back to the hotel a few students, myself, and our professor all went out for the night in downtown Hong Kong where we met people from all over the world. It was a wonderful way to end an incredible, life changing trip to China.

May 14th; Hong Kong

Today we were able to sleep in a little longer than usual which was much needed. We then set out to go visit the company Modern Terminals for our final company visit of the trip.This was the company that my group did the pre-departure project on so I knew a little bit about them before we went and was excited to find out more. The terminal was not very far from our hotel at all and we arrived shortly. We were given passes and then went into a brief presentation about the company given by our tour guide. He was very hard to understand, but I think I could make most of it out. He explained how there were four different companies competing all within the same terminal and they were ranked second of the four. Basically what they do is load and unload the massive freight boats that take literally anything they can fit by sea. Modern Terminals had the ability to fully turn around a ship, unload it and load it, in 13 hours. This sounded slow at first but then we saw that there were about 10,00 boxes on each ship. We went up to the control tower where we were able to look out over the whole operation and see the bots being loaded and the massive cranes picking up the boxes and loading them onto a ship. The two major ways for Modern Terminals to differentiate themselves from their competition is the time of turn around and the insurance of goods being kept safe. It was interesting seeing how the workers in the control towers controlled the cranes and how meticulous they had to be when placing one box on another. This visit catered mostly towards supply chain in general because they are a huge part of so many companies supply chains.

After the Modern Terminal visit we stopped at Hong Kong Science and Technology Park. This company was very similar to China Telecom in the way that they basically supported start-up companies that had a good idea. They would pitch their idea to a group from the HKSTP and they would decide if it was a good business idea or not. If it was they would give the founders all of the resources needed in return for a share of the company. We were able to hear a presentation from a college grad who started his own business that had to do with home brewed coffee and being able to create recipes from your smart phone. He was only 23 I believe and the company was already bringing in around 100 million US dollars. The HKSTP would hear pitches from anyone in the entire world. They would also receive money from the Hong Kong government because they were bringing more business (and money) into Hong Kong.

After a long day of touring the entire group went out to Club 1997 where we hung out for the rest of the night until going back to the hotel.

May 13th; Hong Kong

Today we had to get up early and begin our trip to Hong Kong. Although the bus ride itself wasn’t that long it took us a long time to get to the hotel we are staying at, the Penta Hotel, because we had to go through customs ate the border. This took almost two hours with two different stops. It was incredibly humid and we were carrying so much luggage. It was a little stressful especially because we were with such a large group of people. It really made China and Hong Kong feel like two different countries, even though they are not.

Once we arrived to Hong Kong we quickly unpacked and headed to Lantau Island to visit the Buddhist Temple. We had to take a 20 minute cable car ride just to get there. The view from the cable car was amazing because you could see other islands off the coast, Hong Kong Airport, cows, and the mountains. After arriving to the island we walked to the huge Buddha statue. It is the 3rd largest outdoor Buddha statue in the world and it was placed at the top of a hi;; that you had to take a staircase up to. The pure size of it was amazing and so was the view from the top of it. We also were able to walk around the other buildings on the island where the Buddhists prayed and burn so much incense. It was such a nice day and you were able to see clearly for miles from the top of the mountain. There were also many stray dogs and cows wandering around that were owned by the Buddhists and were allowed to walk freely around. After about two hours we had to take the cable car trip back down and got to downtown Hong Kong for a river cruise.

After eating dinner at a spaghetti house with some friends, we boarded the boat and went to the middle of the river. The skyline was beautiful all lit up at night and there was a light show were the buildings would ll light up at 8 o’clock. Although the light show was nothing to brag about the sight alone was worth the trip. We were able to get snacks and drinks on the boat and after about an hour we headed back to the dock.

After we got back to the hotel a couple friends and I went back to downtown where there were so many people. It was ridiculously packed for a Wednesday with foreign people everywhere. After walking around for a bit we all headed back to the hotel.

May 12th; Shenzhen

Today we visited Huawei. This was one of my most anticipated visits for me yet because it was one of the only companies I had any prior knowledge of before signing up for the trip, even if it wasn’t a lot. When we arrived there it was immediately different from any place we have visited. The facility was massive with so many different buildings and gardens. When we entered the main building we ere taken on a tour that showed us the different technologies that were being developed and worked on. The technology that we were shown seemed very futuristic. There was everything from security, to video games, to televisions, to smartphones. One of my favorites was the video game we saw. It was an exercise bike with buttons on the handlebars. You would have to peddle the bike to make the car within the game move. It was one of the most interactive video games I have heard of. We were also allowed to browse through the new products they had for sale. The watches, phones and tablets were all almost identical to iPhones, but cheaper. So it was interesting to see that most employees use the iPhone instead. We were given a break before the Q and A part of the tour where we were given time to relax in a very nice sitting area. We were waited on and given tea and pastries. Huawei has there main focus in China, but is beginning to make expansions to other countries. They also have planes of trying to connect third world countries to the rest of the world using new 4G technology. We were also given a lunch on site which was one of the nicest meals i had yet. It was pork and jumbo shrimp with a buffet of food to compliment it. After a brilliant lunch we were given the opportunity to walk around the site a bit. We walked through the gardens and were able to explore and take photos of the incredibly nice campus.

After a long day at Huawei we decided to spend our last night in Shenzhen catching up on some sleep and getting ready for Hong Kong. We did try to go into the pool, but did not have swimming caps so we were denied access and decided to go to bed,

May 11th; Shenzhen

Today we visited the ASA Group. This visit was very different from the other companies we toured because we were able to see the production of a cell phone from start to finish. This group had machines that enabled them to create models of whatever phone they wanted to create, which is a very expensive process. They then buy parts from outsiders that they need. We were able to see an assembly line where they put the rest of the phone together. Today they were making a phone with very big buttons for the older generations. We had a question and answer portion of the visit, but it was difficult because we needed a translator and parts of the questions would be lost in translation. One of the crazier facts we were given by the speaker was that ASA Group has the ability to create a prototype of a custom phone within 60 days and be able to mass produce it in 90 days. This turnaround is very impressive technologically speaking. After a nice lunch provided by the ASA Group we went to a local hotel where we were given a briefing on the role of supply chain leading up to the final product. Mark Davis gave led the presentation and was very informed about the subject.  Some of the key points we learn really stuck with me. One not so surprising thing was that the Chinese companies care more about the scale of the order rather than the quality of the products. China is also beginning to outsource jobs to Vietnam because of the wage increases in China. However, companies in China are given money from the government if they employ a certain number of people. Another thing that Marc, and a couple of the company speakers had mentioned before, was that the tablet was going to replace the smartphone. This is very hard to believe considering how many people you see using smartphones today. They said that this change could occur in about 10 years. I’m not sure how much I believe this theory.

After a long day of touring and lectures the entire group, including our advisors, Su, and Ivy, all went to Karaoke night. We were able to rent a room for the night for the entire group and we all had a great time.

May 10th; Shenzhen

Today we left Shanghai and made our way to Shenzhen. We had to get up pretty early and I am still tired from the night before. We took a domestic flight into Shenzhen, which took about three hours. This flight was just like any domestic United States flight except for one difference. I was asked three separate times to turn off my phone. I tried to explain to the flight attendant that it was on airplane mode, but she didn’t understand and I was asked to shut my phone off. I was never given an explanation.  We were also given a meal on the lane that was some of the grossest looking food I have seen. I still ate it it and it tasted how it looked. After landing in Shenzhen we got settled in the hotel and then went to for a city tour. Just like every other city we have visited so far it was massive with many high rises. The main stop on our tour was the bay between Shenzhen and Hong Kong. Looking out over the Bay you could see Hong Kong and the bridge leading too it. It was incredibly hot today and there were so many people at the bay area. There were a great deal of people who wanted to take pictures with us foreigners. After spending time at walking the trail along the bay and taking pictures like tourists we went back to the hotel. Some friends and I went and explored the area around our hotel. We ended up going into a Chinese chain restaurant ( I think) and gave our best shot at trying to order some food. It was very hard to order here because none of the workers spoke any English. After 20 minutes trying to explain my order I ended up resorting to pointing at the menu. The food I received was not anything I thought it was and wasn’t great. I took my meal back to the hotel and called it a night to try and catch up on some much needed sleep.

May 9th; Shanghai

Today we went to downtown Shanghai. It was a rainy day and the fog made all of the sky rises looked interesting with the fog cutting through them.  We were given a city tour before stopping at the Orbital Tower. While on the city tower I thought Shanghai looked very similar to New York city, but on a larger scale. Everywhere you looked there were high rises and huge office buildings. It felt like we would drive for 30 minutes and it still looked like the downtown area. We then went into the Orbital Tower which is one of the tallest, most unique, buildings in Shanghai. It is also part of the skyline you see from the Bund. In the tower we went and visited a wax museum that gave a background of the history of Shanghai. The most interesting part of this museum however was the couple in front of us walking through the museum. This couple gave no regard to the guard ropes that contained the wax figures. They would step over the ropes and go up and put their arm around the figure to get a picture. It was very different from anything I have seen in the Unites States. There was no security to stop them either. After the wax museum we went back downtown to one of Shanghai’s counterfeit markets. These markets were fun because you could haggle with the owner’s of the fake products. It was almost humorous at points. After the wax museum me and my friend Jordan visited Bruce and Fred, family friends from Shanghai.  Bruce is a freshman at a university in Shanghai and we were given the opportunity to go and visit it. They gave us a wonderful tour and it was exciting talking to people from the other side of the world that had a connection with close family members. They were very nice to Jordan and I and taught us a lot about Bruce’s university and some more background on culture in Shanghai. It made for a nice last day in Shanghai.  For a third and final time we went to Windows Garage again, but this time we figured how to take the metro. After dinner we met up with some of the other students from Germany that we had met the night before and went to a nightclub called Fusion. We spent the rest of the night here and celebrated our last night in Shanghai.

May 8th; Shanghai

Today, we visited the company China Telecom. This company was very different from the others we have seen so far. It did not deal with the production of cellphones as much as it did with producing applications for the smartphones. The aspect we looked at of this company was unique. They would provide resources such as equipment, office space, and money to  groups with ideas that China Telecom deemed worthy of having potential. For example, one of the companies they picked up was a group creating an app for to help Chinese children learn English at an early age. After a certain amount of days the company would have to represent the progress they have made and China Telecom would decide whether to keep funding them or not. A lot of the time the entrepreneurs were people who worked for China telecom and were branching out. These people were still guaranteed a job after their project if it failed. If a company did succeed, China Telecom would own a certain share of it. This is were their profit from this process comes. They ca work with up to 4 different start-ups at a time. After our visit to China Telecom we had lunch at a small place in Shanghai were I tried Lotus Root, which I did not fancy. From lunch we went to TE Connectivity. This visit was similar to our Phicomm visit because it too created cell phone parts. Unlike Phicomm, TE Connectivity did not create  the final smartphone product. It only created parts that it would sell to final producers. At this factory we were allowed to take pictures inside, but there were less workers than the previous factories we visited. They began celling parts to the bigger companies, but found it moe profitable to sell to newer, smaller up and coming companies.

After the visit my friends and I again went back to Windows Garage because we knew were it was and were familiar with the menu. We ate dinner here again and then went out to a couple different Nightclubs were we met other students who were studying abroad from different parts of the world, which I found very interesting and it was exciting talking with these students. After a fun night we all took cabs back to the hotel.

May 7th; Shanghai

Today was our first full day in the city of Shanghai. This city is visibly different the Beijing. The structure is set up very differently in terms of the roads. It feels like there are more buildings and more people, at least this is how I felt on the bus ride to our Phicomm visit. This company was a cell phone part manufacturer. We were given a tour through the factory where we were able to see the machines that produced the specific phone parts such as a sim card.  The factory ran 25/7 with four different employee shifts. One of the head people of the company informed me that the minimum wage is rising in China and to cut back on costs they are trying to turn to fully automatic machines. This will pay of for the company in the long run and cut back on their costs. After the company tour we went back to our hotel for a briefing on the smart phone supply chain in China. One of the main points i got out of this lecture was the magnitude of companies that are trying to sell parts to the major cell phone companies. The competition is very strong with cell phone parts in China which drives the prices down for the final producer of the phone, increasing their profit margin. It is very hard to enter into the market because it is so dense. The final producer is buying different parts from different companies and it is usually whoever can get them the lowest price. After the briefing we had the rest of the afternoon off. A couple friends and I found  a sports bar called Windows Garage were we ate dinner and hung out for the night. We used the cab system to get to the main road were all the different food places were on. We met a waiter named Daniel from Kenya who spoke wonderful English. We ended up having Quesadillas and heading back to the hotel.