Book Review: "One Billion Customers"
“One Billion Customers” offers an insightful look into the manner in which the Chinese perform business. It is written by James McGregor who after working both as a journalist and businessman in China has formed an incredible understanding of how things work there. His vast and in-depth knowledge of China shines through as he shares with us what he has learned.
The structure which McGregor uses throughout the book is very effective. The first chapter is devoted to giving the reader the historical background to China. This helps to give an understanding of where many of China’s customs and mannerisms originate from while also giving a narrative of the country’s rise to power. Each concluding chapter relays a different story of various mishaps that have occurred to foreigners trying to do business in China. A synopsis at the end of each chapter then sums up what can be learned from each story. This is followed by `The Little Red Book of Business' which is a concise collection of the author’s observations and key takeaways.
Anyone who thinks that going into China to do business will be easy should read “One Billion Customer” and this misconception will quickly disappear. Every story which McGregor recounts further emphasizes the immense differences between Western and Chinese culture and the resulting conflict of views on business norms and standards. For example the lack of honestly that is present in the Chinese system and their ability to avoid following the rules if there is something they want far exceed any degree to which Westerners are accustomed. The book offers great advice on how to tackle these issues and problems.
Particularly interesting is McGregor’s analysis of how when doing business each side feels they are the ones gaining the advantage over the other. Westerners feel they can use China and its market for limitless access to customers and also cheap labor while it is China’s aim to use foreign companies for the chance to gain technology, know how and capital. However as the book notes when you are in China you are on their turf and as such at somewhat of a disadvantage. It is therefore crucial to be aware of their motives and understand the various nuances of business in order to get the best deal. The chapter entitled “Best laid plans” illustrates just this and shows the importance of foreign companies “holding back key components” of their most values technology.
One of the main attributes of “One Billion Customers” is the ease with which is can be read. It is accessible to people of many levels and previous knowledge of China is not a prerequisite. It is a perfect balance of entertaining stories and practical advice. Never is the reader overborne with factual information or excessive details. While imparting valuable lessons on doing business in China McGregor never takes the tone of instructor. The overall tone of the book is not one in which you feel you are being preached to but rather the stories of business ventures are used to illustrate points which he reinforces in his conclusions.
A downfall of the book is that it focuses solely on large foreign companies doing business in China. The stories of business ventures include that of a large investment bank, a wireless network and the financial company Morgan Stanley. While the lessons to be learned from these examples are applicable to companies of all sizes some insight into how small or medium sized firms operate and perform would be useful. One concern I would also voice is how relevant the book will prove in the future. Many of the cases deal with past events that occurred many years ago and don’t focus much on what the future changes to China’s business will be. With a country that is changing so rapidly one could wonder for how long will what McGregor has to say be applicable.
Overall “One Billion Customers” imparts valuable lessons to foreign business people thinking of embarking on China. Through the use of engaging and amusing stories the various aspects of Chinese business are revealed in a manner which cautions without scaring away those seeking business in China.
The structure which McGregor uses throughout the book is very effective. The first chapter is devoted to giving the reader the historical background to China. This helps to give an understanding of where many of China’s customs and mannerisms originate from while also giving a narrative of the country’s rise to power. Each concluding chapter relays a different story of various mishaps that have occurred to foreigners trying to do business in China. A synopsis at the end of each chapter then sums up what can be learned from each story. This is followed by `The Little Red Book of Business' which is a concise collection of the author’s observations and key takeaways.
Anyone who thinks that going into China to do business will be easy should read “One Billion Customer” and this misconception will quickly disappear. Every story which McGregor recounts further emphasizes the immense differences between Western and Chinese culture and the resulting conflict of views on business norms and standards. For example the lack of honestly that is present in the Chinese system and their ability to avoid following the rules if there is something they want far exceed any degree to which Westerners are accustomed. The book offers great advice on how to tackle these issues and problems.
Particularly interesting is McGregor’s analysis of how when doing business each side feels they are the ones gaining the advantage over the other. Westerners feel they can use China and its market for limitless access to customers and also cheap labor while it is China’s aim to use foreign companies for the chance to gain technology, know how and capital. However as the book notes when you are in China you are on their turf and as such at somewhat of a disadvantage. It is therefore crucial to be aware of their motives and understand the various nuances of business in order to get the best deal. The chapter entitled “Best laid plans” illustrates just this and shows the importance of foreign companies “holding back key components” of their most values technology.
One of the main attributes of “One Billion Customers” is the ease with which is can be read. It is accessible to people of many levels and previous knowledge of China is not a prerequisite. It is a perfect balance of entertaining stories and practical advice. Never is the reader overborne with factual information or excessive details. While imparting valuable lessons on doing business in China McGregor never takes the tone of instructor. The overall tone of the book is not one in which you feel you are being preached to but rather the stories of business ventures are used to illustrate points which he reinforces in his conclusions.
A downfall of the book is that it focuses solely on large foreign companies doing business in China. The stories of business ventures include that of a large investment bank, a wireless network and the financial company Morgan Stanley. While the lessons to be learned from these examples are applicable to companies of all sizes some insight into how small or medium sized firms operate and perform would be useful. One concern I would also voice is how relevant the book will prove in the future. Many of the cases deal with past events that occurred many years ago and don’t focus much on what the future changes to China’s business will be. With a country that is changing so rapidly one could wonder for how long will what McGregor has to say be applicable.
Overall “One Billion Customers” imparts valuable lessons to foreign business people thinking of embarking on China. Through the use of engaging and amusing stories the various aspects of Chinese business are revealed in a manner which cautions without scaring away those seeking business in China.
posted by Deirdre @ 9:58 PM
2 Comments:
At 1:20 PM, April 01, 2006,
Anonymous said…
Good. Little short on the length -- try to add in a little more of "this what I can see that relates to me and my future business future that I pulled from this book". - Prof. Carr
At 8:13 PM, February 15, 2007,
Anonymous said…
Bush is forever saying that democracies do not invade other countries and start wars. Well, he did just that. He invaded Iraq, started a war, and killed people. What do you think? Why has bush turned our country from a country of hope and prosperity to a country of belligerence and fear.
If ever there was ever a time in our nation's history that called for a change, this is it!
The more people that the government puts in jails, the safer we are told to think we are. The real terrorists are wherever they are, but they aren't living in a country with bars on the windows. We are.
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