“Want a challenge,” writes Wen-Szu Lin in his wonderful new book, The China Twist. “Try launching your first business in a foreign country where you aren’t familiar with the language or culture. Launch in a city where you have no connections. Introduce a product category (Auntie Anne’s Pretzels) that is completely new to the consumers. Limit your initial investment to a small amount. Oh yeah, for kicks, let this foreign country be China.” Here are a few takes from the Wharton MBA:
Operations is massively under-emphasized. “MBA classes often emphasized the ‘sexy’ part of the businesses. How it is going to be financed? What is the innovative marketing that changed the course of the business? Operations and implementation is only represented in most classes as a tiny aspect of the overall process; thus creating that impression in the overall value. Sad to say, I was part of that group who looked at operations as ‘beneath’ me. My perspective is completely reversed now. Poor operations will sink any business. Operations is hard and it is a daily grind. If you want to build a great business from the ground up, better start loving the operations.”
A corrupt regulatory landscape. “Our MBA program discussed the implications of the US Foreign Corrupt Practices Act and how large corporations deal with working in corrupt environments. I recall the classes portraying all cases as black and white. How does that translate to an entrepreneur getting shaken down by local government employees, all wanting some ‘favors’?”
How to ethically deal with unethical people. “Our procurement manager took bribes and demanded kickbacks from most of our suppliers. If I were in the US, I would have fired that guy as soon as the first supplier called to complain. However, he was the smartest person on our staff and could get prices lower than what we could, even with his kickbacks built in. And if we fired this manager, there is a good chance that we would face the same issue with the next employee. What we ended up doing was turn a blind eye but we checked the prices periodically to ensure that the prices he quotes are the same or lower than what we ourselves could negotiate.”
Where do these quotes of Wen-Szu originate from? Is it an interview?
Good book indeed; I read it in full. Reminds me of “Mr. China”.
Yes, these quotes came from an interview. I am glad you enjoyed the book as much as I did. It is a perfect book to take on a long plane ride to China!