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Engaging China: the realities for Australian

businesses

www.abfoundation.com.au

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Australian Business Foundation study

Insights about critical success factors and approaches for doing business with China

Background analysis

25 business case studies

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What’s special about this study

Not a primer, but a reality check

Range of business models, firm sizes and industries

Actual experiences, beyond the hype

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About the project team

Rab MemariInternational Market Analyst

Sara Cheng Manager-Greater China

Catherine Armitage Experienced China Journalist and Writer

Dr Keith SuterInternational Relations Expert and Commentator

Christine Gibbs StewartInternational Trade Specialist

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Business case studies

AltiumANZAustralian and New Zealand Institute of

Insurance and Finance (ANZIIF)Aus-Sino Focus Group Limited (ASF)Babekühl ProductionBigWorldBMDi TUTACEM InternationalCIROA HomewaresDe Bortoli WinesFerguson AustraliaIlum-a-Lite

International Wool Promotions (Interwool)

Johnson Pilton Walker (JPW)Kingold GroupLinatexMammoth MerchandiseMcKay AssociatesMelbourne Business School (MBS)Minter EllisonPlatinum International CargoProfessional Public Relations (PPR)SWA Water AustraliaSmouhaWestray Engineering

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Findings at a glance Massive change Diversity Scale

Agility Fast learning

Cultural differences Relationships Complex, ambiguous and volatile environment

‘Best of Breed’ Adaptable Well-informed business strategy

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Business environment

Culture – saturates all aspects of engagement

Relationships –“guanxi” is pervasive

Government – means business

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Business operations

Talent and skillsThe indispensable need for the right skills and for the local Chinese manager

QualityRaising the bar on quality with clear communication and managing expectations

FinancesChina needs the usual due diligence for financial transactions

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Business operations Intellectual Property

Intellectual property to reflect the wider business strategy – compete on innovation and design

CommunicationGood communication is a vital tool of trade

PartnersThe right partner is an essential element and needs investment of time and effort

Customers and ClientsSelecting the right customer is as crucial as selecting the right partner

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Business opportunities

Manufacturing in China for other strategic advantages, not just low cost

Services success often unrecognised

Different business strategies, but common threads drive success

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Insights

Looking beyond stereotypes

Opportunities for small global enterprises

Success through services

Adaptability in the face of complexity

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Conclusions No one single model, but:

master relationships and culture

be both focused and agile

proficient in the business fundamentals.

Keep up to date with new knowledge on China.

Reality check helps avoid being mesmerized by huge potential.

Capitalise on opportunities for ‘small global enterprises’.

www.abfoundation.com.au