Thursday, December 11, 2008
Z-Park: China's Silicon Valley - Business Week Article
To access the article, you can click on the title of this post or visit http://www.businessweek.com/innovate/content/jun2007/id20070605_039465.htm. The reference to Jenny is on page 2.
Report on Z-Park by Darin Clark and Tom Beyeler
The area selected for the software park is strategically located on the outskirts of Beijing but more importantly it is located close to several Beijing universities including Peking University. The park has all the most up to date infrastructure to support the high tech industry. It is also strategically managed to be economically friendly and green. The site has solar power facilities to provide power. There are no manufacturing facilities in the park. The park is primarily for research and development in addition to an “incubation lab” for new ideas. IBM is the largest employer in the park with approximately 3,000 employees engaged in research and development activities.
Z Park is funded by the revenue generated from selling or renting buildings to software firms. 99% of all the employees employed by the various firms are from the local market. Z Park does not advertise for firms to come into the park. They sponsor user panels, meetings, conferences and forums to raise awareness of the Z Park.
The great success of Z Park lies within the vision of its leaders. This was apparent after the meeting with the chairman of Z Park, Ms. Zhou Fang. Ms. Fang’s engineering background coupled with knowledge of real estate has helped her make Z Park one of the most successful areas in the Chinese computer industry. During and extensive Q&A session, Ms. Fang explained in detail the green initiatives within the park, the reasons for the outstanding growth, and the future plans for Z Park. Her personal goal is to make Z Park one of the top 10 industrial focused parks in the world.
An interesting note about the park relates to employment competition as there is a mutual agreement between HR managers to not take people between companies.
Wednesday, December 10, 2008
Raquel Park's impression of China - so far!
A fabulous highlight of the China trip has been the visit to the Great Wall and the visit to the Forbidden City, which sounds like the album title to Britney Spears next CD. Both the Great Wall and the Forbidden City are wonderful sites to gain insight into the life, culture and customs of the Chinese people.
The Chinese have embraced me thus far with smiles, friendliness and hospitality. I feel very fortunate to have been able to attend this trip. As a non traditional, full time employed student, this type of study abroad opportunity has been very feasible. I do not have to resign from my current position to move to a foreign land for 3 months to one year in order to study abroad. Instead, I can go for a very fulfilling 2 weeks, meet and develop relationships with international business executives, do some light paper writing/homework (no free lunch!), and sing karaoke – with the great pleasure of receiving 3 credits and priceless memories.
Report on iSoftStone by Pamela Quintero & Selena Steffy-Fuoss
On our final day in the city of Beijing, we had the opportunity to visit Zhong Guan Cun Software Park (also known as ZPARK). That visit provided an excellent platform for our afternoon meeting with one of the companies that operates its IT outsourcing business at the ZPark facilities.
In preparation for our visit with iSoftStone, we learned that the founder, Mr. Liu, also co-founded AsiaEC.com in 1999. With the help of Mr. Liu, that company became China’s largest on-line office supply and services provider. Later, the company was acquired by Office Depot, the largest office supply provider in USA. Mr. Liu, founded iSoftStone in 2001 and since then it has continued to grow market share in a highly competitive sector.
The host for our visit was Seth Pinegar, the Head of Corporate Development. Seth stated that the company currently employs 4000 people and by the end of 2008 expects to grow that number to 4400. He mentioned that 80% of the company’s employees are located in China, mainly due to the lower costs.
In terms of the financial progression of the company, Seth stated that they expect revenue to increase from 45 million (in 2007) to 90 million by year end (2008). He conveyed that in general, the company has a positive outlook on their future growth and by 2011, plans to employ 15,000 and increase revenues to $500 million. He suggested that it is anticipated that this growth will be a result of a successful merger and acquisition strategy as well as the continual growth of global outsourcing needs. Seth stated that while Gartner shows that the outsourcing sector growth rate is at 35% per year, iSoftStone plans to grow by more than 50% per year - that higher than average growth will be attributed in part, to the company’s planned mergers and acquisitions.
As we learned throughout our studies at Purdue, companies are wise to continually analyze their strengths, weaknesses, opportunities and threats. It was apparent that iSoftStone had examined their company in the context of SWOT and our discussion with Seth revealed the following about his company:
Strengths
- Access to Government Incentives (Tax Breaks and Land grants)
- Government Support of clean and green businesses
- Ability to borrow money at low rates
Weaknesses
- The service business is dependent on other markets
- The service business can be impacted by global influences
Opportunities
- The economic downturn could result in companies looking for cost cutting measures – leading to growth opportunities in outsourcing
- When dealing with the growing Asian markets, there are fewer cultural barriers compared to firms in India.
Threats
- India's existing labor force
- Vietnam's growing labor force
Our visit with iSoftStone was quite informative and provided a first-hand view of a successful company with an aggressive strategy and global perspective.
Day 4 Update - ZPark, iSoftstone, and the Olympic sites!
We want to take a moment to thank Steven, our tour guide in Beijing. Steven has been so very helpful to us in many many ways. On our bus rides he has given us a lot of interesting information about the city, he lead us through the Forbidden City and Tiananmen Square, and helped many of us to arrange special tours. He also played an important role in helping us determine what was in each dish at our special meals. Throughout it all, Steven has been kind, patient, and efficient. He has been a very important addition to our trip. This picture shows Steven leading our group during our tour of the Forbidden City. We will miss him very much!
Tomorrow morning we are headed for an in-country airline trip to Shanghai. As we have afternoon business visits, we are taking a VERY early flight. Jenny wants us checked our and ready to board the bus at 6:00 AM - yes, you did read that right!
Pat's Obi's Pearls of Wisdom
Day 4 Reflections - Chin Park
Day 4 Reflections - Phil Moore
Day 4 Reflections - Selena Steffy-Fuoss and Pamela Quintero
Well it is day 4 and we (Pamela and Salena) have lots of catching up to do! Our invigorating hike of the great wall was hampered by my (Pam’s) 50 pound purse and my (Salena’s) celebrity photo shoot. We believe if we could do this hike every day for the next 4 years we can be ready for the next Olympics. I (Salena) decided to go to the restroom without my partner in crime and she thought I was kidnapped in the Forbidden City.
Day 2/3: Sorry Rick and Jack we have confirmed our passion for attending Law School after talking to Audrey Chen at the Junhe Law Offices. We were impressed by her vast knowledge of the American and Chinese Law as well as both cultures. I (Salena) was so impressed that asked how I could practice law in China and she responded by asking if I could speak Chinese. Unfortunately I only know how to say boiling water (kai shui). I learned the word the other day when Pam, Darin, Jennifer and I went for tea. I (Pam) tried to be helpful and ensure our tea was made with boiling water. I quickly my used my resources and limited language skills and as a result we received shot cups of boiling water.
Unfortunately, I (Pam) got a migraine headache that got worst throughout the day. However, I learn an ancient Chinese secret that the boiling water from the café would have helped m headache.
Well I (Salena) learned a lot of about everybody’s dancing skills in the class. I, also learned that if my MBA degree doesn’t help my career I continue my lessons with Manvel and have a future as a pool shark.
This is Pam and Salena signing out and we will tell you of the adventures in Shanghai when we get there later this week.
Tuesday, December 9, 2008
Report on CANGO by Ozzie Rivero and Stephanie Guzik
As stated on their website, CANGO’s vision is: “To empower citizens and civil society to create an environment that offers fair chances to everybody for sustainable development.” Their stated mission is: “To create a strong, empowered network of Chinese NGOs to address poverty alleviation, environmental protection and social development, particularly in China's poor, remote, and minority-inhabited areas.” An interesting fact learned during our visit is how CANGO’s definition of poverty differs from the official Chinese policy. According to the Chinese government there are 14 million people with income under $100 USD/year. However, CANGO measures the poverty level at $1 USD dollar a day per person. By using this standard the number of people living in poverty balloons to 114 million, a substantial difference.
The challenges are many, starting with the fact that there are 700 million people in rural areas and approximately 200 million move in and out of the urban areas on a yearly basis looking for temporary work. CANGO has been trying to empower the local citizens to make decisions on their own. This has been a difficult transition because of the many years of centralized government and the many levels of bureaucracy. Even the name Non-Government Organization can be a term of conflict and some areas prefer to use the term societal organizations in order to keep within the party line.
Currently, CANGO has 100 member organizations across China and keeps cooperative relationships with governmental agencies on various levels. They also partner with colleges and universities as well as over 150 international NGOs. Current projects include increasing potable water, prevention of HIV/AIDS and disaster relief. CANGO is also very involved in the Sichuan Earthquake relief project. CANGO is also leading a movement to increase Corporate Social Responsibility (CSR).
The work of CANGO’s research department has added credibility to the organization and has also given them the opportunity to spearhead other projects such as environmental protection and tree planting. In order to ensure continued success, CANGO offers workshops on NGOs, project management, strategic planning, fund raising and resource mobilization. It appears the CANGO has laid a strong foundation for all NGOs throughout China.
Report on Jun He Law Offices by Jennifer Benson and Shontrai Irving
For an attorney and accountant in the MBAE program, there were several moments that broadened our minds about the practice of law in China. First of all, it was indeed a pleasure to visit the first private law firm in China. That is certainly a historic moment for both of us. More specifically, we learned that although the country of China has existed for thousands of years, the laws of the country are not so well developed. To learn that 3 of the 5 founding partners of the firm graduated from United States law schools provides a sense of pride in the educational opportunities available in our country. To also learn that Audrey Chen received her LL.M degree from the University of California Berkeley, School of Law demonstrates the unique endeavors that ambitious people can embark upon.
We both learned about the requirements and effort that it takes to become a partner in a large firm. The requirements are not so different in the United States but what is all the more interesting are the hurdles that women must endure in a male dominated profession. This is not uncommon in the legal profession nor the business world. This was all the more meaningful because we had a later conversation over this issue because as an African American corporate attorney and a white female accountant, we have only focused our beliefs on what we know in America, but learning about these issues from a global perspective is something that we will never forget and was quite astonishing .
There are often events that shape the world and to hear the number of United States companies that left China during the events at Tiananmen Square in the late 1980’s and early 1990’s was something that we both took to heart. We are unsure at this time whether the financial struggles that we currently have in the United States will affect China.
Additionally, to learn that lawyers are not as well respected in China as they are in the United States was indeed profound. We are hopeful that in the near future, the citizens of the Republic of China will have more appreciation of lawyers as the law in that country develops. More importantly, it is essential to remember the social responsibility that lawyers have in society. We appreciate Audrey Chen sharing with us how JUN HE is active in pro bono matters and have actively participated in legislative research initiatives by the Chinese government and other public interest activities.
We were indeed fortunate to visit JUN HE law office in Beijing and have a meaningful discussion with Audrey Chen. We wish the best to JUN HE as they will soon celebrate their 20th anniversary in 2009. More specifically, we wish the best to Audrey Chen and thank her for providing us a view of the legal profession in contemporary China. We may never have the opportunity to have this discourse and dialogue in our lives again and we are most appreciative of this experiential learning opportunity.
Day 3 Update - CANGO, Jun He Law Offices, Peking Duck, and Karaoke
We had a wonderful family-style lunch in the building housing our next visit. We were seated at two large round tables near windows with a lovely view of the city. As the lazy susan went around we tried many dishes such as a delicious sweet and sour pork (NOTHING like the sweet & sour in America), spicy tofu, mushrooms and cabbage, and kung pao chicken. Check out the video and see how good Prof. Obi is getting with his chopsticks!
Guess what we found for an after lunch treat? STARBUCKS! Many of us were delighted to see this and got our caffeine fix.
After lunch we went into the beautiful offices of the Jun He Law Offices and met Ms. Audrey Z. Chen, attorney at law and partner in the firm. Ms. Chen charmed us with her stories and wit. We learned that Jun He was China's first private law firm, founded in 1989. They have five founders, three of which are US educated. The firm was set up originally to serve US clients. Now the firm is home to more than 70 partners and 350 associates. She proudly told us that her firm was named China law firm of the year for 2008. Did you know that the China Bar pass rate is 5%? Compare that with California at 50% and New York at 70% (both states in which Ms. Chen is a member of the bar). You can learn more about the Jun He Law Firm at http://www.junhe.com/en/index.asp.
After this visit we had a few hours until our Peking Duck dinner and karaoke. Many of us went shopping, some took a nap, and others went on an adventure. Tricia and Lori took a rickshaw tour of the Hutong. The Hutong is the traditional area of Beijing where people live. It is now a protected historical sight. We saw a very interesting neighborhood, had a wonderful guide named Pong, and were able to visit with a pensioner in his home. The main buildings in the hutong were almost all quadrangles--a building complex formed by four houses around a quadrangular courtyard. Many hutongs face south for better lighting and heating.
At 6:00 we were off for the traditional Beijing dinner of Peking Duck. We had our dinner at the Loushe Tea House - a very famous venue visited by many celebrities including Henry Kissenger, President Bush, and Purdue Calumet MBAE!! While there we were entertained by young ladies playing traditional Chinese instruments and a puppet shadow show. After dinner many travellers visited the tea shop upstairs.
Our next destination was KTV for an evening of karaoke. It did take some hunting to find songs that we wanted to sing along to, but we did find some. The videos accompanying the songs were hilarious! For those of you who lived through the 80's clothes and hair, you'd have been right at home..... One of the highlights was Shontrai's rendition of Madonna's "Like a Virgin" complete with his traditional flips (ask any of the MBAE 10 students about the flips). Also active participants were Ozzie, Tricia, Stepanie, Patrick, and Barbara. Prof. Obi got into it with a classic reggae song!
Day 3 - Barb Thompson's reflections
My lesson for the day: your imagination of what can be is probably worse than what is after all in my mind, my hair is average but across cultural bearers it’s like a lion’s mane.
Monday, December 8, 2008
Day 2 Update - Great Wall, Forbidden City, and Tiananmen Square
What goes up, must come down and so down we went. It was definitely easier than the way up, but by no means easy. On the way down, some of us stopped to purchase "medals" commemorating that we climbed the Great Wall. Now if we only had 7 more, we'd be just like Michael Phelps.....
After a bus ride back into the city and lunch, we headed off to the Forbidden City, home of Emperors, Empresses, eunuchs and concubines. Because it was getting late and because we wanted to be sure to get tickets, we went in from the back entrance. The Forbidden City is surrounded by a moat and a very high wall. The back entrance is the servants' entrance and leads into the main living space. We saw many courtyards, gorgeous buildings, statues, and many huge cauldrons that used to serve as resevoirs for water in case of fire. These two pictures are of one of the buildings that has been restored.
Happy 80th Birthday Dad - From Tricia
Thanks Dad for teaching me to be adventurous while taking on any physical and mental challenge, otherwise I would have missed this trip. Happy Birthday!
First Day Thoughts - Darin Clark
First Day Thoughts - Patrick B. Kirkwood
First Day Thoughts - Manvel Robinson
First Day Thoughts - Stephanie Guzik
Day 1 Update - We have arrived!
The menu board - which one will you try?
Friday, December 5, 2008
One day to go!
We will post as often as we can. Check back often!
