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Published: October 9, 2007

 
 

Evolution on the Global Stage

If history is any guide, China’s up-and-coming companies won’t remain unknown forever. The best Chinese companies will do what American and European companies have long done and what Japanese and South Korean companies have done in more recent decades: use their strengths in the homeland to expand internationally.

For instance, companies can leverage the positive reputation that their home countries have developed as a consequence of their economic success. For U.S. consumer product companies, this has often meant international associations with the “good life” of affluent Americans that has been reinforced by Hollywood. In recent years, many Asians, especially younger ones, have started to look to Korea as a fashionable, leading-edge country, based on its technical leadership in mobile communication and its soap operas and movies.

Similarly, China’s continued growth has already started to attract attention. In Africa and Latin America, China is becoming a major foreign investor and alternative source of financing for governments and is sending many Chinese employees to work overseas. As the global community’s focus turns to helping drive economic growth for the people at the bottom of the pyramid, China offers an alternative to the traditional Western model of economic success. If they act wisely, Chinese companies have a strong base from which to build soft power, combining an empathy with consumers across emerging markets, technological sophistication inspired by the world’s largest mobile phone population, and cultural attraction based on a many centuries-old civilization.

Author Profiles:


Edward Tse (tse_edward@bah.com) is Booz Allen Hamilton’s managing partner for Greater China. He advises multinational and local clients on strategy, organizations, and operations.
Andrew Cainey (cainey_andrew@bah.com) is a senior executive advisor for Booz Allen in Greater China. He works with both local and multinational financial institutions on all aspects of strategy, organization, and capability-building in China, Korea, and the rest of Asia.
Ronald Haddock (haddock_ronald@bah.com) is a vice president of Booz Allen in Greater China. He works with auto and industrial companies from around the world on strategies for growth and operational effectiveness in the Asia Pacific markets. 
 
 
 
 
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Resources

  1. Charles Hampden-Turner and Fons Trompenaars, Riding the Waves of Culture: Understanding Diversity in Global Business (McGraw-Hill, 1997): A strong overview on the awareness and sensitivity necessary for cross-cultural management. Click here.
  2. Jeffrey Liker, The Toyota Way (McGraw-Hill, 2003): A study of the management principles behind the rise of Japan’s number one car company. Click here.
  3. Jeremy MacNealy, “GE: Making Money, Making a Difference,” The Motley Fool, April 9, 2007: The business case for General Electric’s increasing environmental awareness. Click here.
  4. Joe Nocera, “Running G.E., Comfortable in His Skin,” New York Times, June 9, 2007: A conversation about management with General Electric’s Jeffrey Immelt. Click here.
  5. Joseph S. Nye Jr., “Soft Power and Leadership,” Compass: A Journal of Leadership, Spring 2004: The onetime dean of Harvard University’s Kennedy School of Government talks about America’s need to persuade by means other than military force. PDF Download.
  6. Edward Tse and Andrew Cainey, “Attracting Global Interest: How Chinese Companies Can Leverage ‘Soft Power’ in the International Marketplace,” Booz Allen Hamilton white paper, August 2007: The piece on which this article is based goes into more detail for industry leaders. PDF Download.
 
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