| Sustainable development of the enterprises
Turn present difficulties into opportunities, Chinese enterprises are seeking overseas opportunities and sustainable development July 1st, 2009 Shanghai
Opportunities area always accompanied by risks, especially in the fast changing market against the background of global financial crisis. In the past few months, many Chinese enterprises, regardless of its size, type and organization, were filing their nails in cross-border acquisitions when the foreign cheap assets came and rang the doorbell. Will it be an opportunity or trap? Surely, bargain needs to be seriously investigated by enterprises. These words trickled out of the NDRC-HEC EMBA program launching ceremony and seminar on sustainable development strategy of enterprises under the financial crisis. Mr. Zhou Bo, Deputy secretary-general of Shanghai Municipal Government, Mr. DU Ping, Direct General of the NDRC Training Center and Director of the office of leading Group for International Intellectual Resource Exchange, Mr. Jacques Torregrossa, Commercial Counselor of France in Shanghai and Mr. Bertrand MOINGEON, deputy dean of HEC all delivered speech on the spot.
Technological innovation and creation, the foundation stones of sustainable development
Shanghai, the modern industrial and commercial window city, suffered from this worldwide crisis deeply. The growth rate of total output value of the city slowed down last year compared with the corresponding figure over the same period of the previous year. Economic is restructuring. People doubted how to keep the development sustainable. This is also the problem every Chinese entrepreneurs faces. How could we turn the present difficulties into opportunities?
One researcher likened this crisis to a filter which helps to keep the good momentum of the market development. This statement agreed by most guests present. CEO XX said: The vitality of a product originated from technical upgrading. Through improving the technological innovative capabilities of enterprises, quality control, and cost control, a product can win a place in the market, remaining constant and sustained competitiveness. Furthermore, consideration of brand effect can be set in the long run. A good social image and reputation enhances the virtual brand value with wide influence. Potential customer groups ensure the product moves forward. Overseas investment, a bargain or a trap?
Many entrepreneurs have already prepared for expansion. But lessons are still to hand. Considering sustainable development, enterprises should be sensible of its advantages and shortcomings. ??Do we have the capability of overseas management??? In the forum, French government officials introduced the investment circumstance in France. Pascal GONDRAND, the chief representative office of invest in France Agency said that France is one of the best locations for foreign investors. Actually, it is the third leading global FDI destination. However, investing overseas is not an easy process, especially for Chinese companies who have not yet this kind of experiences. Investors need to prepare their projects, get reliable information and find the best partners.
Some entrepreneurs as alumni of HEC EMBA stated that today the profits of overseas asset acquisition are still unclear. Chinese entrepreneurs should be patient with overseas investment. Whether it is suitable to manage the oversea investment? They suggested that good luck can also result in potential burden. Investment entity, visible or invisible?
On the other side, for many Chinese entrepreneurs, now is the best chance to the investment in intangible assets of human resources. Mr. DU Ping, Director General of the NDRC Training Center and Director of the office of leading Group for International Intellectual Resource Exchange, emphasized that training up the talents is the key to sustainable development. In a lot of large projects which contains immigration of new tech, mergers & acquisitions and cross border transactions, Chinese managers are required to combine international trade skills with the knowledge of the actual conditions in China. However the current education system can not fulfill such demands. That is why we introduced world class training program which shall meet the needs of Chinese executives. Attracting talents at home and abroad, instituting a whole set of incentive mechanisms favorable to the training and use of competent people is essential to sustainable development.
In addition, many companies in Western development area were being forced to cut staff. Among them, a group of well qualified employees are suffered from such an indiscriminate treatment. It is worth to explore. According to statistics, the growth rate of foreign employees in Shanghai kept a double-digit growth last year which including 70% existing managers with an advanced degree. More and more professional foreign talents are rushing into Shanghai. Compared to New York, Tokyo and Landon, the world trade centers trapped in high rate of unemployment, Shanghai is the haven. Shanghai is remaining open to overseas talents.
Keep training and education for the executives in this crisis can provide a firm invisible protection of further sustainable development. |
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