GMS 200 1
Lecture 7 – Class Notes
1. New Venture Creation
Important issues in new venture creation:
- Does the entrepreneur have good ideas and the courage to give them a chance?
- Is the entrepreneur prepared to meet and master the test of strategy and competitive
- Can the entrepreneur identify a market niche that is being missed by other established
o A niche market is not the same as a new market
- Can the entrepreneur generate first-mover advantage by exploiting a niche or entering a
market before competitors?
o Aircraft companies, only 4 in the world have this advantage
o Reason we have so many monopolies today is due to first-mover advantage
2. Being an entrepreneur in China
- Short stayless than 6 months
- Long stay more than 6 months
- Resisting staying Canadian even if you live in China, same attitudes, following same
culture, language etc.
- Adjusting basically becoming Chinese, adopting culture, attitudes, language etc.
- Assimilator have adopted Chinese culture, marry Chinese
- Conservative everything they do is still based on the values of their home country,
foreign attitudes, rather marry a foreigner
- Adventurer accept every invitation, try everything, follow instincts easily, looked at as
early assimilators that eventually move up
- Cautious everything they do, they’re careful, don’t get involved in local activities
unless they’re completely sure, don’t really engage with adventurers, restricted of certain
4. Success factors and challenges in China GMS 200 2
- Language Positive to understand the language of the country
- Cash money Sometimes only cash is acceptable, some barriers/rules, but also risks
- Local networks ranking system to know which companies/partners are reliable
identify the best partners etc.
- Immigration status having a stable long term status is good
- Loyal local partner--> have strong connections with one local partner understanding
about what you need in the market
- Multiple suppliers ability to switch
- Lucky numbers #8 is likable number
- “Chin-glish” mixing English and Chinese
- Mistrust don’t trust if you have no cash, both sides, foreigners and suppliers and vice
- Poor communication cannot speak English etc. ex. Translator or calculator
- Legal restrictions having a lot of land, converting money, government restrictions