After 40 years in the electronics industry, including visiting and living in Asia during the past 18 years, I've learned a lot about the differences in American and Asia business cultures

1. Doing
Business
in Asia
One American’s
View
Gary Faraci

2. A little about me…..
• 40 years experience in top global electronics manufacturing,
distribution, and OEM information services companies
• Positions held included
– Global Strategic Alliance Business Development Executive
– Vice President of Global Business Development
– Vice President of Asia Pac Global Alliance Key Customer division
– Vice President lf Global EMS (Electronic Manufacturing Services) Sales
– Director of Asia Pac ODM (Original Design Manufacturer) & EMS Sales
– Production Manager
• Started visiting Asia for work in1998
• Lived in Taiwan 2003-2005
• Lived in Singapore 2007-2010
• Continuous business trips to Asia, including China, every quarter
2

3. Some facts about China…..
• The official population of the USA is 319 million
The official Chinese population is 1.4 billion people
There are another 400 million Chinese people not “on the books”
• America’s largest city, New York, would only rank as the 46th
largest city in Asia
• There are only about 500 surnames (last names) in China
• More Chinese speak English than the entire US population
• There are 700 million Chinese connected to the internet
(44% of the population)

4. What I learned about doing
Global business in Asia
• Culture and respect for culture are most important
- my first day: Asians are curious and want to learn
- my first six months: you have to gain respect & trust
- you can never let anyone “lose face”
• Language is always a concern
- Yes doesn’t always mean yes as you know it
- some things just do not translate
- make an effort to learn a little of their language
• Hierarchy is important
- their chain of command
- direct superior trumps other’s senior title

5. Differences between Asia / Chinese &
American Business Cultures
• Relationship-based versus transaction-based: the Asian way is:
- relationship comes before economics. Trust & respect first
- relationships take time. Patience is a must.
- Entertainment is expected & is an integral part of the business culture
• Communication differences: the Asian way is:
- face-to-face versus doing business without meeting in person
- quiet & reserved versus outspoken & expressive
- non-confrontational versus aggressively looking for agreement
• Negotiations & Closing the Deal: the Asian way is:
- stretch out the negotiations, knowing American impatience
- pauses & silence in discussions are not unusual
- signing a deal does not mean immediate business

6. What I Do to Deal With The Differences
• Keep an open mind
- accept & learn about the culture
- respect everyone at every level
• Laugh with them and at myself
- accept their offerings, especially at meals
- try to learn & use Chinese phrases
• Use communication gimmicks
- make it easy for them to remember
- pictures, familiar phases help (see next slide)

7. How I got a sales strategy across
to everyone at every level – ROSES !
•Relationship Building - at Customers,
suppliers, internally
•OEM Impact - utilize our influence at OEMs,
suppliers, & internal teams’ design effort
•Supplier Impact - utilize influence at
customers, and our internal teams’ design
effort)
•Educate - customers, suppliers, internally,
and ourselves)
•Supply Chain & Value-Added Solutions - to
meet Customer & Supplier needs
ROSES will help you blossom & Lead The Way to success

8. The 3 “R’s” to Success
• Responsiveness – great customer service
1) respond quickly to every request
2) communication frequently
3) answer emails, voice mails, phone calls the same day received
• Relationships – with everyone
1) Customers: buyers, customer service, engineers, managers
2) Suppliers: local, regional, global, customer service, sales
3) Internally: country, regional, corporate, functional groups
• Resources – the right people with the right tools, the right training,
and the right systems
Executing the 3 R’s is a must for customers & suppliers to be willing to
pay for your value proposition

9. Some final thoughts
for your personal success & happiness
•Be Happy – if you are happy you will make your customers & suppliers
your friends, your co-workers, and your family happy
•Use all resources available to you: managers, co-workers, internal
training, Internet, outside training / schooling
•Listen, Ask and Learn - to the VoC, VoS, VoE. If you don’t understand
after hearing them, ask questions to make sure you do
•Believe in yourself – share your great ideas. Try things. Take risks.
•Have fun! - we all have too much stress, too much work. Make sure you
make time for fun. All work and no play will keep you from Leading The
Way
And remember – the American way is NOT the only way!