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Huawei’s Executive Management Structure is Based on Bird Migration (Seriously) (techinasia.com)



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Huawei’s Executive Management Structure is Based on Bird Migration (Seriously) (techinasia.com)


Mar 4, 2013

by C. Custer

http://www.techinasia.com/huaweis-executive-management-structure-based-bird-migration/
Chinese mobile product giant Huawei is in the news a lot, but many people don’t know that the company has the pretty interesting policy of rotating executives in and out of the CEO position every six months. This approach has only been in place since last year, so it’s pretty new and it may not last. But at the Mobile World Conference last week, current Huawei CEO Guo Ping told Fortune magazine about the inspiration for the system, and it’s not what you’d expect:
Our management model is quite new, but actually it comes from an idea from a book written by an American author, called Flight of the Buffalo. The theory of that book is about how migrant birds fly across the Atlantic Ocean — they always fly in a V-shape but the lead[er] of the team is not always the same bird. So they change and rotate to lead the whole team across the ocean.
Indeed, migratory birds often fly in a V-formation to reduce wind resistance. The bird at the front of the V (the leader) experiences the most wind resistance, so the birds take turns flying in the leading position, which allows the entire flock to fly for a longer period of time than it could with one leader consistently in the front.
It will be interesting to see whether this rotation strategy will be something that Huawei keeps in the long term. But even if it doesn’t, I’ve got to give the executive team some credit for looking to the animal kingdom for inspiration here. Perhaps there is more we can learn from animals about what it takes to build and run a successful company.
(via Fortune)


Better Product Quality Part Of HP's Focus In China (chinasourcingnews.com)


March 5, 2013 | By Editorial Staff

http://www.chinasourcingnews.com/2013/03/05/544710-better-product-quality-on-hps-china-menu/


March 15 is World Consumer Rights Day, and an American technology firm is getting a jump on the holiday by focusing on better product quality in China.
China HP's Printing and Personal systems group unveiled a new quality and service system which focuses on ensuring better product quality.
In this new quality and service system, China HP's PPS group has integrated the former PC and printer after-sales platforms and provides round-the-clock after-sales services to users. At the same time, the newly established quality control commission will implement full supervision of product quality, covering product design, production, logistics, and service.
Rong Guangyu, general manager for the customer support and service department of China HP PPS, told local media that the quality control service will participate in the testing during the product development stage and provide the initial user experience feedback. For after-sales services, any user feedback related to quality will reach the development and production departments.
Rong said China HP's employees attach great importance to quality and managers on each level need to be responsible for product quality. At present, every HP product reportedly needs to pass 115,000 hours of strict tests. With the help of this strict quality management system, the company's product repair rate decreased by 50% year-over-year in 2012.
Rong pointed out that HP currently has 1,100 licensed service sites in China and the number is expected to increase to 1,500 by the end of 2013.


Auf Wiedersehen: Media Markt Drops China Business (chinasourcingnews.com)


March 4, 2013 | By Editorial Staff

http://www.chinasourcingnews.com/2013/03/04/054708-auf-wiedersehen-media-markt-drops-china-business/


Running an electronics retail business in China is tough, as seen by recent exits from the market by U.S.-based Best Buy.
Media Markt China now announces on its official website that the company will be closing its seven electronics retail stores in the country on March 11, 2013.
According to the statement, Media Markt's Chinese stores will remain open until March 11. After this date, the store on Huaihai road, Shanghai, will continue operating as the primary customer care center for Media Markt until it too will close its doors on April 30, 2013.
The decision has been approved by Media Markt China's two major shareholders, Germany's Metro Group and China's Foxconn Group.
Prior to this, Metro Group already announced in mid-January 2013 that it would discontinue the Media Markt business in China.
According to public files, Media Markt China has 750 employees working at its Shanghai headquarters and seven stores.
On behalf of the board of directors, Frank Bussalb, president and chief executive officer of Media Markt China, expressed their thanks to all staff. He thanked the employees for their outstanding work over the past two years. The high-quality customer support and service made a huge contribution to the development of Media Markt in China. The closing of these stores is the result of considering the severe market competition and the huge investment for the establishment and operation of the business.


Luxury Cars: The Non-China Chinese Market (siliconhutong.com)


MARCH 4, 2013 BY DAVID WOLF

http://siliconhutong.com/2013/03/04/luxury-cars-the-non-china-chinese-market/


In the Hutong

Work Break

1945 hrs.
On Valentine’s Day, the always excellent Jing Daily published an article (“Ultra-Luxury Auto Sales In China Surprisingly Robust, But Are They Sustainable?“) that calls into question whether those stunning new Lotus, Maserati, Bentley, and Ferrari dealerships that are sprouting up around China are in for some hard times. Economic uncertainty and the potential that Xi Jinping‘s administration might discourage conspicuous consumption apparently has many buyers holding off on purchases. The spectacular Beijing accident a year ago that claimed the son of a powerful Party official and one of his passengers has made ultra-luxury cars an unintentional symbol of cosseted elites and official malfeasance. Markers of success are becoming stigmata of excess.
But the Chinese party is not over for the luxury car-makers, although a change in strategy may be in the offing. It may be time for the Ferraris and Bugattis of the world to learn from the purveyors of less expensive luxury goods, because the real market may not be in China: there is a fair chance that the majority of Chinese who will be buying ultra-luxury cars in the future will be buying them overseas.
Naturally they won’t be doing so in order to ship the cars back to the PRC (with the exception of the occasional gray-market beast that cannot be found in China or Hong Kong). Instead, they will be buying their high-speed bling to park them in the garages and and driveways of the homes they are buying in North America, Europe, and Australia.
Adjusting to this shift will mean changes in the way these cars are sold outside of China. Dealerships will need Chinese speakers on the showroom floor and in the service bays. Sales literature and owners manuals will need to be available in Chinese as well as the local language. Manufacturers will need to create Chinese websites for markets where Chinese isn’t usually spoken. And that is just a starter list.
The really smart manufacturers will set up Chinese-language customer service hotlines and owners clubs that cater to Chinese speakers in North America and Europe at least. They will advertise online in Chinese and in the mass media of the Chinese diaspora. And if they’re really smart, they’ll offer those special models and features that are designed to cater to the tastes of the new global Chinese elite.
None of this is mandatory, of course. For some brands, the snob appeal is derived in part by the derision with which it treats even its best-heeled customers. But the wiser luxury car manufacturers will realize that the Chinese are coming to the world: best to reach out and meet them before they decamp to the competition – or decide to spend their money on something else.




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