Marshall Meyer - Faculty Research in Knowledge@Wharton

The Dragon Turns Green: China's Manufacturers Adapt to a New Era

Wed, 03 Jun 2009 16:43:47 EST

The skies over Hong Kong today are permanently gray, covered with smog from southern China's factories -- the same factories that have made China one of the world's most important manufacturing hubs in just two decades. Now the government is shifting emphasis from economic growth at all costs to growth without a high environmental cost. Who will gain as China cleans itself up? Who will lose? And what opportunities will this historic shift in national priorities create?

Chinese Manufacturing in an Age of Resource Price Volatility

Wed, 03 Jun 2009 16:43:34 EST

China is slowly moving away from energy subsidy policies that hold down prices -- especially for industry. Those subsidies protected exporters from devastation when energy prices shot up to record-setting levels in 2008 and helped to keep social unrest somewhat under wraps. No one knows for sure how far China will go in reducing energy subsidies for business in the future, but China could use subsidy policies as a tool in pushing particular industries away from low-value exports that generate a lot of waste to higher-value goods that produce less waste.

Raising the Bar: Can China Meet the Quality Challenge?

Wed, 03 Jun 2009 16:43:40 EST

After being stung by consumer backlash and stiffer penalties for piracy, counterfeiting and contamination, China is working hard to overcome its reputation for poor quality. Many experts see quality issues as the simple growing pains of an accelerating economy. After all, China already makes high-quality products such as iPods. The challenge today for foreign partners: How to set and enforce effective quality benchmarks.

China's Growing Talent for Innovation

Wed, 03 Jun 2009 16:43:30 EST

China has a wealth of advantages as a business innovator, including an adaptable population with an affinity for improvisation and reverse engineering, and a low-cost operating environment. Companies from developed economies soon will either profit from or compete against this developing culture of innovation as China moves beyond labor-intensive, low-value-added consumer goods. But China is not an easy place for outsiders to be innovators, and companies from developed economies looking for R&D partners there must proceed carefully.

Rising Giants: Industrial Clusters Are Changing the Face of Chinese Manufacturing

Wed, 03 Jun 2009 16:43:44 EST

Regional specializations have always existed in China. Tailors from the city of Cixi, for instance, controlled clothing manufacturing in Beijing for some 250 years. Now China has taken the idea to a new level by creating huge manufacturing clusters that specialize in a single industry or product. Thousands of manufacturers in Datang in Sichuan province, for instance, crank out more than six billion pairs of socks annually. But with a shifting world economy, expect manufacturing clusters in some sectors -- such as simpler textiles and toys -- to fade in importance, even as others, such as biotechnology, grow.

Attached at the Wallet: The Delicate Financial Relationship between the U.S. and China

Wed, 29 Apr 2009 14:19:24 EST

The financial relationship between China and the U.S. is beginning to look like an unhealthy co-dependency. China holds so much of its foreign reserves in dollar-based assets that it is now vulnerable to shifts in the U.S. economy. And the U.S. has allowed China to purchase so much of its debt that it is now beholden to Chinese interests. Experts disagree, however, about the real motives for China's continuing investments, and whether it would ever sell them off.

Trade Wars: Will Protectionism Win out over Recovery?

Wed, 18 Feb 2009 17:51:20 EST

When governments around the world spend vast sums to stimulate their economies, it seems only reasonable for each to invest at home. Why should the American taxpayer pay for steel from Canada when U.S. steelmakers are struggling? So it was hardly a surprise that the $787 billion stimulus plan just signed by President Barack Obama included protectionist language. But economists and political leaders in the U.S., Europe and elsewhere worry that such sentiments threaten free-trade principles that are crucial to any global economic recovery.

Why China Needs to Grow Its Economy, or Risk Growing Unrest

Wed, 04 Feb 2009 17:07:39 EST

China's leaders have long held that the economy must grow by at least 8% a year -- the minimum needed to maintain order and keep everyone employed. But given recent layoffs, factory shutdowns and the drop in world trade, 8% is going to be a difficult number to hit. What are the consequences to the Chinese government and the Chinese people of growing unrest among the unemployed, especially China's huge migrant population? As one expert notes: The country "can no longer rely on the model that has worked since 1978."

Do the Answers to Our Current Financial Woes Lie in the Past?

Wed, 01 Oct 2008 19:25:39 EST

Bad debt. Frozen credit. Stock market panic. Popular outrage. Political paralysis. The financial crisis that has dominated September's headlines may feel unprecedented to many Americans. But it feels altogether familiar to scholars who have examined the economies of other nations around the world that have undergone recent banking crises. During a panel discussion held the day after the Dow Jones Industrial Average plunged a record 777 points, Wharton and University of Pennsylvania faculty offered their views on what the United States can learn from the past tribulations of markets as diverse as Japan, Mexico and Turkey.

Ebb without Flow: Water May Be the New Oil in a Thirsty Global Economy

Wed, 01 Oct 2008 17:54:21 EST

Is water the new oil? The answer is yes, according to a number of economists, business leaders, scientists and geopolitical strategists, who argue that it's time to stop taking for granted the substance that covers 70% of the planet and makes up a similar proportion of the human body. Just as the late 20^th century saw an oil shock, the early 21^st century may feature a water shock, where scarcity leads to a sharp price hike on a resource that has always been plentiful and cheap. Such a scenario could have an even bigger impact than peak oil, transforming markets, governments and ecosystems alike.

Political Tensions Are Creating New Rules for International Business

Mon, 22 Sep 2008 16:32:59 EST

Emerging economies still promise opportunity but also political risk for international businesses. Growing income disparity in rapidly developing economies, geopolitical tensions and anti-U.S. attitudes are among the broader political trends that could shape global business in the future, according to Wharton faculty. "Increasingly, politics will intervene and political management skills will be valuable for multinationals," says Wharton management professor Witold Henisz.

Doha Debacle: What's Next for Global Commerce

Wed, 06 Aug 2008 17:31:38 EST

Progress toward unfettered international commerce stumbled last week with the collapse of the World Trade Organization's Doha talks, a seven-year effort to establish new global trade rules. The lengthy talks were complicated by the rapid emergence of China and India as major economic powers with commercial and strategic interests to protect, and the clout to do so. Many observers say the talks' collapse is a setback for poorer nations, which need access to larger markets in order for their economies to grow. Wharton professors Stephen Kobrin, whose research interests include globalization, and Marshall Meyer, an authority on China's economy, recently spoke to Knowledge@Wharton about the talks' collapse, global commerce and China's interest in the rules governing trade.

Procurement -- Subcontracting and Product Quality in China

Mon, 30 Jun 2008 10:23:30 EST

Marshall W. Meyer, professor of management at Wharton, has made many trips to China to research the rapid growth of its economy and the successes and difficulties it has had in growing so quickly. In this interview, Meyer discusses the recent controversy surrounding China's exports of substandard toys and pharmaceuticals to the United States, and the implications for supply-chain management.

Navigating Olympic Sponsorship: Marketing Your Brand without Alienating the World

Wed, 16 Apr 2008 16:43:25 EST

Images of Chinese guards and local police protecting the Olympic torch on its journey to Beijing were hardly the kind of publicity the IOC or the Chinese government were hoping for. Nor can the 12 "Worldwide Olympic Sponsors" be thrilled at the latest images of hand-to-hand street fighting. How can sponsors make the August Olympics a brand builder for their products rather than a public relations nightmare for their companies? Wharton professors suggest they figure out a way to reap the benefits of associating with the event while maintaining reputations for corporate social responsibility outside China.

When Are Emerging Markets No Longer 'Emerging'?

Wed, 05 Mar 2008 15:48:59 EST

The term "emerging markets" is now more than 25 years old and has come to define wide swaths of the world undergoing rapid economic change. Dozens of countries fall under the label even though they are evolving at their own pace and with their own twists on economic development. Now, as many emerging markets show signs of a strong and growing middle-class population, observers wonder whether the term has lost some of its meaning. What qualifies a country as "emerging"? While some say measures based on income or other statistics are critical factors, others place an increasing emphasis on the way business is conducted, with rules that are transparent and apply equally to all participants.

Is One Global Model of Corporate Governance Likely, or Even Desirable?

Wed, 09 Jan 2008 15:30:15 EST

In Germany, labor unions traditionally have had seats on corporate boards. At Japanese firms, dozens of loyal managers cap off careers with a stint in the boardroom. Founding families hold sway on Indian corporate boards. And in China, Communist Party officials are corporate board fixtures. But as companies continue to globalize, should they consider adopting one uniform model of corporate governance? Or do global investors benefit from diverse governance structures? Wharton faculty and others offer their opinions.

What's Ahead for the Global Economy in 2008? Reports from the Knowledge@Wharton Network

Wed, 09 Jan 2008 16:49:19 EST

Though the subprime mess and rising oil prices slammed the U.S. economy during much of 2007, other emerging markets -- especially China and India -- seem to be on a roll. China's growth rate of more than 11% is likely to continue, and India, too, should be able to sustain a high rate of GDP growth, even if it slows from last year's 9%. Latin America, meanwhile, is cautiously optimistic but could see a moderate decline in 2008. The Knowledge@Wharton Network sites -- including Universia Knowledge@Wharton, China Knowledge@Wharton and India Knowledge@Wharton -- spoke with Wharton faculty and other experts about what to expect during the coming year.

Trouble in Toyland: New Challenges for Mattel -- and 'Made in China'

Wed, 22 Aug 2007 13:17:32 EST

Mattel's recall of more than 10 million toys in the U.S. over the past three weeks has done more than focus attention on the company's wide array of products, which include such household names as Elmo, Ernie, Big Bird, Barbie and Batman. It has also further raised public awareness of quality control problems in China and the relentless push to cut costs along every step of the supply chain. Knowledge@Wharton looks at Mattel's response to the crisis, its potential liability and the consequences for China.

Eyes on China: The Costs of Progress

Wed, 08 Aug 2007 16:08:27 EST

On August 1, Mattel recalled approximately 1.5 million toys made by a manufacturer in China because of dangerous levels of lead in their paint. Four days earlier, the Chinese government ordered the country's banks to increase their reserves as part of an effort to cool down its red-hot economy. But quality concerns and rapid growth aren't China's only worries. There is also the government's need to keep forging ahead on preparations for the Olympics next August in Beijing, despite criticism about overdevelopment and unsafe levels of pollution. Knowledge@Wharton asked management professor Marshall Meyer for his perspective on these issues.

China Stumbles, Markets Tumble: Will the Volatility Continue?

Wed, 07 Mar 2007 15:18:06 EST

The Economist called it "a snort from a dragon's nostrils." At the end of February, as China's stock market index fell by more than 8%, stock markets tumbled around the globe in their steepest decline since the attacks on September 11, 2001. Adding to the anxiety were concerns about a possible shakeout in the U.S. sub-prime mortgage market and former chairman of the Federal Reserve Alan Greenspan's comment that the U.S. economy could face a recession. Since then, markets have recovered, only to drop again, and then climb once more. What is causing this volatility, and what does it mean for investors? Knowledge@Wharton asked for comments from Wharton finance professor Jeremy Siegel, whom we spoke with first, and Wharton management professor Marshall Meyer, who closely follows China's economy.

What's Ahead for 2007? Knowledge@Wharton Network Surveys the Globe

Wed, 13 Dec 2006 16:02:13 EST

On the financial front, 2006 has been a pretty good year all around. Stock markets in many countries have rallied, energy prices have fallen, inflation is relatively low and growth in GDP ranges from respectable to robust. But the economies of most countries also face a number of threats -- some predictable, some not -- that could derail recent gains in our increasingly connected global markets. What's ahead for 2007 in the U.S., India, Europe, Latin America, China and other parts of the world? We offer a roundup of reports from the Knowledge@Wharton Network, including India Knowledge@Wharton, Universia Knowledge@Wharton and China Knowledge@Wharton.

Out of Shanghai's Shadow: Why Hong Kong Is Becoming China's New Financial Services Center

Wed, 15 Nov 2006 16:21:19 EST

Contrary to rumors about its imminent "death" following the transfer of power from the British, Hong Kong has emerged as the financial intermediary through which foreign investors seek to invest tens of billions of dollars into mainland China. Meanwhile, once-booming Shanghai's star is starting to fade. What happened? According to Wharton faculty and other experts, while Hong Kong was crafting a strategy to position itself as both a legal and financial services center for China, Shanghai was weighed down by corruption and a largely state-run financial services sector.

'A Crucible of Competition': The Emerging Chinese Company

Mon, 16 Oct 2006 22:17:23 EST

Despite the hurdles they face in entering the global market, companies emerging from the highly fragmented and competitive domestic market in China will have distinct advantages that many Western competitors are unprepared to deal with, according to experts from Wharton and Boston Consulting Group. Among them: steep cost savings in wages and safety requirements, and a widespread lack of concern or clear regulation regarding intellectual property protection.

Navigating the Labyrinth: Sales and Distribution in Today's China

Mon, 16 Oct 2006 22:17:17 EST

Experts from Wharton and Boston Consulting Group say that firms should not underestimate the skills they will need to navigate the labyrinthine networks of state-owned distribution companies and small, private wholesalers in China -- particularly as they try to expand outside the country's largest 30 or 40 cities into its 500-plus other large markets.

One Billion, Three Hundred Million: The New Chinese Consumer

Mon, 16 Oct 2006 22:17:12 EST

Despite rapid urbanization and the emergence of a strong, status-conscious middle class, experts from Boston Consulting Group and Wharton point out that China is still "a country of extremes," where it pays to understand the differing habits and mindsets of the rich and poor, as well as the subtleties of consumer rationales for trading up and down when making purchases.

Can China Gear Up to Sell Its Cars to U.S. Consumers? Quality Is Key

Wed, 20 Sep 2006 15:51:08 EST

First it was textiles and consumer electronics. Next may be cars. China is once again looking to target a key consumer market in the U.S. Can China become a powerhouse in the global automotive industry, and if so, when?

An Interview with China Minsheng Bank's Shao Ping: Innovation Is the Key

Wed, 10 May 2006 17:28:59 EST

Founded in 1996 and headquartered in Beijing, China Minsheng Bank Corp. (CMBC) is the first nationwide joint stock commercial bank with non-state-owned enterprises as shareholders. Over the past decade of development it has become a leading player in China's banking sector. Faced with heated competition from four big state-owned banks that have lately begun to introduce strategic foreign investors, and from the aggressive initiatives of international banking groups, what specific strengths, in management and strategy, does CMBC have to take on challenges at home and abroad? With these questions in mind, Wharton management professor Marshall Meyer held a dialogue with Shao Ping, vice president of CMBC, at the bank's Shanghai branch office on April 18, 2006. During the talk, Shao also expressed his ideas on the reform of China's banking industry and on the revaluation of the RMB. Following are excerpts from the interview.

The Long and Winding Road to Privatization in China

Wed, 10 May 2006 17:29:08 EST

China's sweeping economic reforms, which have lifted the country to a starring role in the global economy in only a quarter-century, are marked by a more gradual transition from state control to private ownership of firms than in other countries that have also made the transition, according to Wharton faculty. Indeed, privatization in China has come slowly as government officials weighed the prospect of massive layoffs necessary to restructure bloated state-owned enterprises, known as SOEs. Privatization was also met with resistance from influential company managers, many of them Communist party officials. Despite these obstacles, however, a vibrant, entrepreneurial private sector has managed to survive alongside state-controlled firms.

Farewell, Peter Drucker: A Tribute to an Intellectual Giant

Wed, 30 Nov 2005 15:55:06 EST

Decades ago, Peter F. Drucker single-handedly began the exploration of what he called "the dark continent of management." That exploration, which gave birth to the field of management, came to an end on November 11 when Drucker passed away at age 95. Wharton professors point out that Drucker's most important contributions are grounded in his writings on management and marketing. Despite his death, his legacy and impact as a role model will last.

Workin' on the Railroad: Can a Public-private Transit Venture Succeed in China?

Wed, 30 Nov 2005 15:55:06 EST

Two businessmen from Philadelphia, Pa., have launched a bold project to develop and run a mass transit system with the local Chinese government in Fuzhou, a city of approximately 1.5 million on the southeastern coast of China. If successful, it would be the country's first public-private railway system. Yet the road from idea to implementation can be especially challenging, say a number of observers, especially when dealing with Chinese officials on a transaction that involves buying real estate alongside transit lines. At the same time, however, the project could well benefit from new investment opportunities presented by China's ongoing transition from an agrarian to an industrial economy.

IBM, Maytag, Unocal...Who's Next in China's Sights?

Mon, 21 Nov 2005 15:00:21 EST

Does the aborted bid by CNOOC to acquire Unocal signal the end of Chinese corporate takeover attempts in the West -- or just the beginning? On August 2, the company, whose parent is the state-owned China National Offshore Oil Corp., withdrew its $18.5 billion offer for California-based Unocal in the face of stiff U.S. political resistance. The incident prompted bad feelings on both sides, and in the near future, merger and acquisition activity from Chinese firms in the U.S. market may well slow down. But in the long term, analysts say, new efforts to purchase Western companies are likely, given factors that include China's immense foreign-exchange reserves, Chinese firms' ability to shore up weaknesses through overseas mergers, and the country's overall aim to expand its influence abroad.

Is CNOOC's Bid for Unocal a Threat to America?

Mon, 21 Nov 2005 14:59:58 EST

On June 23, CNOOC, the third-largest oil company in China, made an unsolicited $18.5 billon bid for U.S.-based Unocal. The bid has caused concern in the U.S. Congress because CNOOC is a government-owned company attempting to buy a natural resource that is important to national security. But ultimately, some say, there appears to be no sound reason why the U.S. government should move to block the deal, if Unocal shareholders decide it is in their best interests. At the same time, observers note the unresolved ambiguity that exists in the minds of both ordinary Americans and government officials responsible for U.S. foreign policy. Should China be viewed, as it was during the height of the Cold War, as a foe of American interests? Or should it be seen as a trading partner that is embracing free-market principles?

What's Behind BoA's Bold Move into China?

Wed, 13 Jul 2005 15:36:49 EST

Bank of America's recent announcement that it will pay $3 billion to own 9% of state-owned China Construction Bank, China's second-largest commercial bank, has raised a number of questions about the riskiness of such a move. Wharton faculty members and others who follow China say BoA's purchase gives it a foothold in a country with a Wild West business culture -- where the potential for both profitability and missteps exists in equal measure.

When Will the Apparel Quota System Finally Go Out of Style?

Wed, 29 Jun 2005 16:12:24 EST

When import quotas on textile products coming into the United States ended January 1, 2005, under World Trade Organization agreements signed 10 years earlier, a flood of clothing poured in from China. Within months, the U.S. responded with restrictions on Chinese apparel imports. Yet according to Wharton faculty and industry executives, these restrictions will only delay, not end, the global move toward quota-free garment trade.

Open Sesame? Or Could the Doors Slam Shut for Alibaba.com?

Wed, 27 Jul 2005 12:04:36 EST

In a modern version of the old tale, Jack Ma, founder of Alibaba.com, has established an e-commerce company with millions of users and a growing global reputation. It offers three online marketplaces that bring together companies and consumers who want to do business with China. Faculty members at Wharton and other experts around the world say that Ma and his team have done an exemplary job of using their knowledge of China to build Alibaba's business there. The question, however, is whether Alibaba's economic model can withstand competition from major players such as eBay, which are moving aggressively into the Chinese market.

Revaluing the Yuan: Where Politics and Economics Collide

Mon, 25 Jul 2005 16:23:22 EST

As the Bush administration continues to pressure China to allow the yuan to rise against the dollar in order to stave off protectionist legislation in the U.S. Senate, Chinese officials continue to reply that they will not be coerced into taking action by a foreign government meddling in a matter of national sovereignty. Faculty members at Wharton and other China-watchers predict that China will eventually revalue the yuan, probably this year, because it is in China's own long-term interest to do so. These experts also note that the United States, by trying to force the issue in a vociferous, public manner, is possibly delaying the revaluation. In addition, they say, revaluing the yuan will not revitalize industries that have been battered by the movement of certain jobs to China, where labor and production costs are cheap.

Steel and Beer Highlight the Challenges Ahead for Chinese Industry

Wed, 01 Jun 2005 16:47:58 EST

Companies, as Westerners define them, have existed in China for less than 20 years. Understand that, and much of the flux in the country's economy and its commercial regulations begins to make sense. "China eliminated firms in 1950 and didn't reconstitute them until 1988," said Wharton management professor Marshall Meyer during a presentation at the recent 2005 Wharton China Business Forum. "Therefore, it only has 17 years of experience with Western-style businesses." Meyer and others discussed the challenges of doing business in China, including such topics as intellectual property protection, privatization, energy consumption and environmental conservation.

China Is Trying to Cope With Its Logistics Challenges But Gaps Persist

Wed, 01 Jun 2005 16:48:42 EST

A decade ago multinational firms operating in China had to carry higher levels of inventory than comparable firms in the U.S. or Western Europe because the logistical challenge of moving goods around the country was enormous. Today, while matters have improved, gaps still persist as logistics capabilities lag behind the hectic pace set by the manufacturing sector. China is growing so fast that, in some regions, it's straining the capacity of its roads, railways and ports, and testing the limits of its still-young shipping companies, say experts from the Boston Consulting Group and the Wharton School. The bottom line implication: As companies draw up operations plans for China, they need to place much greater emphasis on logistics than they might in a developed country.

Sourcing From China: No Longer Just for Shoes, Toys and Clothes

Wed, 01 Jun 2005 16:48:32 EST

Twenty years ago it was widely believed that companies that wanted to source products from China were best off focusing on simple, labor intensive products such as shoes, toys and clothes. That was true - and it helped drive tremendous success for companies such as Perry Ellis, which targeted these product categories. Today, however, the sourcing landscape in China has changed. High-tech companies such as Dell, IBM, Philips, Samsung and Nokia are turning to China to source parts and products that demand sophisticated technology and considerable R&D. According to experts at The Boston Consulting Group and Wharton, companies that figure out how to take advantage of this trend can reap enormous rewards.

R&D in China: The Next Frontier or a Sure Bet to Squander Intellectual Property?

Wed, 01 Jun 2005 16:48:24 EST

Low costs may serve as a magnet to attract manufacturing to China, but research and development is not far behind. More and more companies -- especially in the high-tech field -- are setting up R&D bases in China and figuring out ways to integrate them into their global research operations. Given China's notoriously porous intellectual property regulations, is this a recipe for disaster? Not quite, say experts from Wharton and the Boston Consulting Group.

The Changing Face of Management in China

Wed, 01 Jun 2005 16:48:16 EST

CEOs and other senior executives at multinational corporations (MNCs) in the U.S., Europe and Asia are focusing more of their time and their companies' resources on China, according to experts at the Boston Consulting Group and the Wharton School. Research by BCG suggests that the MNCs that have had the most success in China are those whose top managers have gone out of their way to stress the importance of their China businesses in relation to their global operations. At the same time, the managers on the ground in China are also changing. While expatriates still hold the most senior positions in China, Chinese locals are assuming a greater role in both middle- and senior-management ranks. In years to come, MNCs will face new challenges in their China operations: nurturing the growing number of more educated and experienced Chinese managers and leveraging their China operations in a way that contributes to their global competitive advantage.

An End to Global Textile Quotas: Watch China Sew Up the Market

Wed, 09 Feb 2005 16:50:03 EST

On Jan. 1, the Multifiber Agreement -- which for 30 years let nations place quotas on the amount of textile and clothing imports allowed into their countries -- expired for members of the World Trade Organization, the multilateral global trade body. The elimination of global textile quotas is expected to drive garment production to China, benefiting consumers in North America and Europe at the expense of developing nations where apparel manufacturing has become a bridge to an industrial economy, according to Wharton faculty and other analysts.

The IBM/Lenovo Deal: Victory For China?

Fri, 14 Jan 2005 14:58:37 EST

With the sale of IBM's personal computer business to Chinese company Lenovo Group Limited, two emerging trends quickly move front and center: The increasing commoditization of technology and the emergence of Chinese companies as global players. Wharton professors say both trends warrant watching and raise some key questions. Can Lenovo become a global player and integrate IBM's U.S. managers? Will IBM's PC customers defect to rivals like Dell Computer? Can state-owned Chinese companies become dominant in the international markets? Professors from Wharton and Universities in China, as well as Wall Street analysts, offer their opinions.

Does China Pose an Economic Threat to the United States?

Wed, 17 Dec 2003 14:49:23 EST

It would appear so, given the rhetoric in recent months by American politicians and some business people, who have complained about the loss of U.S. jobs to China, unfair Chinese trade practices and a Chinese foreign currency policy that favors Chinese exporters who flood world markets with cheap goods. But faculty members at Wharton and other business schools say the complaints are politically motivated and ignore the true victims of any trade war – the consumers.

Managing Around the Complex Structure of Chinese Firms: The CIMC Story

Wed, 18 Jun 2003 00:00:00 EST

As if doing business in China were not complicated enough, Chinese managers struggle with trying to manage companies that have no clear cut boundaries, in part because the legal, listed and operating entities of each company are usually separate. Such a structure, says Wharton management professor Marshall Meyer, fosters operational inefficiencies and an inability to consolidate. Yet a recent paper by Meyer and Wharton PhD student Xiaohui Lu examines how one company, China International Marine Container (Group) Company, or CIMC, has been able to work around its fuzzy boundaries and dominate the world market for shipping containers.

Can a Chinese Legend Go Global?

Wed, 12 Mar 2003 00:00:00 EST

One of the world�s hottest PC companies has a balance sheet worth envying, a dominant position in a fast-growing market, and a history of good service and innovative technology. But if you haven�t heard of Legend Computer, you can be excused; for the past 19 years, the company has confined itself to China. As China transforms and opens, though, its No. 1 PC maker is coming into the spotlight, and it hopes to become a global force to rival IBM, Dell and HP. Experts at Wharton and elsewhere examine the prospects of Asia's most successful computer maker.

Can i-mode Go Global?

Wed, 14 Aug 2002 00:00:00 EST

Japan�s mobile Internet service, i-mode, has left its European and American counterparts in the dust. Takeshi Natsuno, a Wharton graduate who manages i-mode strategy for NTTDocomo, says the mobile service now has 34 million users in Japan. Can i-mode export its success to other countries? Experts at Wharton explain why this is still an open question.

Think State-Owned Companies Are Inefficient? Look at China

Wed, 15 Aug 2001 00:00:00 EST

For most Western observers, state-owned companies are wasteful white elephants while private enterprise sets the standard for efficiency. A look at China�s large public sector giants, however, tells a different story, according to Wharton management professor Marshall Meyer. Even China�s entry into the World Trade Organization later this year or early in 2002 will not eradicate state ownership of major Chinese companies. Meyer shares the insights he has gained from research and visits with senior managers in more than 20 Chinese firms.