Lessons from Google's Experience in China

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These are the slides for the presentation I did on Google's experience in China for my "Business, Governance and Ethics in Asia" class, part of my MBA at Melbourne Business School.

The talk lasted exactly 10 minutes followed by about 15 minutes of Q & A.

For fun, I was wearing a tuxedo during the presentation as well.

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  • Lessons from Google's Experience in China

    1. 1. Lessons from Google’s Experience in China • Scott Arbeitman • Jorge Fajardo • Esteban Neuenschwander • Peter Polacek •
    2. 2. Perspectives
    3. 3. Perspectives Mianzi (face)
    4. 4. Perspectives Mianzi (face) Justice and Relationships (guanxi)
    5. 5. Perspectives Mianzi (face) Justice and Relationships (guanxi) Censorship
    6. 6. Perspectives Mianzi (face) Justice and Relationships (guanxi) Censorship Innovation
    7. 7. What Happened? 1949 - Communist China Declared
    8. 8. What Happened? 1970’s - Economic Reform
    9. 9. What Happened? 1989 -Tiananmen Square Massacre
    10. 10. What Happened? 1990’s - 2000’s – Rapid Economic Growth
    11. 11. What Happened? 1998 – Google is Incorporated
    12. 12. What Happened? 2004 – Google IPO
    13. 13. What Happened? 2006 – Google starts google.cn
    14. 14. What Happened? January 2010 – Google discloses hacking attempts
    15. 15. What Happened? March 2010 – google.cn redirects to uncensored HK site
    16. 16. What can we learn?
    17. 17. Losing Face Western firms should not undertake any communications or policies which would undermine the "face" of the Chinese government. A better approach would be a “partnership” where the two parties attempt true cooperation and discuss their grievances in private.
    18. 18. Justice and Relationships The Chinese legal system is not be best avenue to resolve legal disputes. Instead, companies should invest in relationships with Chinese officials (guanxi) to ensure that should any commercial or political friction occur, it can be smoothed over.
    19. 19. Censorship Western firms cannot expect their corporate values to the universally applicable. Indeed, some issues may clash with the political or cultural sensitivities of other nations.
    20. 20. Innovation Innovation and the introduction of new technology to China will not, alone, create a favourable operating environment for your company. In the short term, the government has other priorities. However, innovation is crucial for future Chinese development and firms should attempt to foster innovation as best they can.
    21. 21. Conclusion Lee Kai-Fu, former head of Google China
    22. 22. Conclusion 1) Learn the protocols and forge trusting relationships* 2) Establish a strategy for long-term commitment* 3) Nurture local talent and leadership 4) Be flexible and open to local needs and practices* 5) Help build the local business ecosystem 6) Build trust from a unified, humble organization* It is no wonder Google struggled and will continue to struggle in China.
    23. 23. Conclusion 1) Learn the protocols and forge trusting relationships* 2) Establish a strategy for long-term commitment* It is no wonder Google struggled and will continue to struggle in China. 3) Nurture local talent and leadership 4) Be flexible and open to local needs and practices* 5) Help build the local business ecosystem 6) Build trust from a unified, humble organization*
    24. 24. Q &A (I’m Feeling Lucky)

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