Management Solutions
image
We manage operations for foreign companies developing their Sales and Distribution channels in China.
Business Recovery
image
Our specialty is operational improvements and turnarounds of underachieving Chinese subsidiaries.
Industrial Services
image
We provide a manufacturing platform and industrial project management for companies setting up production in China.
Equity Partnerships
image
We invest with foreign service companies to help you seize a significant market share in China.

  • Events

    image

    Framework for Success in China

    Friday, May 18, 2012 - Unindustria Treviso (Italy) invites senior executives of Italian companies operating in China to attend half-day workshop dedicated to best practices for setting up and developing business in China. Language: Italian and English. Download presentation here

    image

    Key Management Concepts for Successful Operations in China

    Thursday, May 24, 2012 - At the seminar “Key management concepts for successful operations in China” international expert speakers will focus on how you can operate successfully in the Chinese markets. They will also focus on how you can use Hong Kong as a platform for these activities. Experts will share their experiences and tell you how you can seize the opportunities China is now offering you. Language:Dutch or English.

  • Survey

    image

    Survey: Operational Excellence in China

    PTL Group and Dezan Shira launched "Operational Excellence in China" survey. It is intended for senior management executives of international companies operating in China. The main objective of the survey is to gather information about key factors affecting operational excellence of companies in China. Questions cover HR, Finance, Logistics, Operations, Legal and Tax issues.

    survey

  • Business

    image

    PTL GROUP

    We are a group of professional service companies focusing on operational management and industrial infrastructure in China. Offering innovative management solutions and our mature operations we are the perfect partner for international companies looking to set up, manage and operate sales and manufacturing operations in China.

    Our know-how and expertise give clients the piercing penetration they need to capture a slice of the local market. Higher efficiency, lower costs, better risk control and shorter time-to-market are the consistent outcomes of a PTL Group strategy.

    With our operational support models your competitive advantage in China’s B2B markets is closer than ever!

  • Solutions

    image

    OUR SOLUTIONS IN CHINA

    With our support, new entrants in the China market can successfully:
    - Establish independent Sales and Distribution channels
    - Set up and manage Assembly and Production operations
    - Outsource key back office management functions
    - Outsource existing mature operational infrastructure

    Mature players in the China market can use us to:
    - Perform operational audits to identify management risks
    - Assess and coach managers to improve operational performance and governance
    - Perform fast intervention in times of crisis by identifying critical flaws and supervising corrective transformation processes
    - Perform full Multidisciplinary Turnaround projects to revive underachieving businesses

  • Clients

    Clients

    Our Leading Clients

    We typically work with medium-sized companies that operate globally. They come to us having established themselves in China. We provide distribution infrastructure; enhance sales channels; bolster operational controls and facilitate manufacturing capabilities. Thanks to our versatility, we are fluent in the language of success across several industries. View More Clients
    Kramer Tuttnuear Afimilk John Bryce Lycored
    Bonetti towerjazz Risco habonin


Home

Created on Wednesday, 10 February 2010 16:45

Thursday January 27 a seminar titled ‘China Challenge’ was held at country estate ‘De Horst’ in Driebergen. The seminar was organized by de Baak and consisted of a presentation by Zvi Shalgo, CEO of the PTL Group (a management company active in China), followed by a panel discussion led by Harry Starren (director of de Baak). The panel consisted of Zvi Shalgo (PTL Group), Helmy Koolen (Benelux Chamber of Commerce in China) and Taco van Someren (Ynnovate).

This article aims to give a summarized overview of what was discussed in the presentation of Zvi Shalgo and a grasp of topics discussed during the panel discussion. Zvi Shalgo starts his presentation by giving an overview of the current economic status. China can beviewed as a post communist emerging market with the following characteristics:

  • A privatization of markets (instead of privatization of state owned enterprises)
  • Ongoing opening of markets to increase competitiveness
  • Co-optation in enterprises (The Chinese government gives credit to both state-owned as well as private companies)

Even though the Chinese market is more open now, approaching it still has different challenges than you will find on many others. First of all, specific ‘entry fees’ are present. An example of this is that for a multinational to get foot on the ground, it needs to give up particular technology in order to get permission from the Chinese government. Besides this there is, perhaps unfair, competition by local companies supported by the Chinese government (examples of this support are a more flexible application of Chinese law and government funding for investments needed).

Despite drawbacks for international companies, the huge (and fast growing) Chinese market is still offering huge potential. Zvi shares that most multinationals neglect the lower and middle segment of the market, or in other words, are not selling to Chinese consumers but merely to the government or other companies and MNE’s. The reason for this is that most companies simply find it too demanding to manage direct selling. In this segment huge growth of local enterprises is witnessed. The entrepreneurs that are most successful (in this segment and in general) will nowadays be ‘adopted’ by the government. This means huge credit lines for investments and such. An interesting fact is that an ‘entrepreneur’ is, only since 2002, accepted as a decent person by the Communist Party. Successful entrepreneurs nowadays are viewed by the government as important ingredients for growth of the Chinese economy. The presentation continues with some examples of these very successful (and often quite young) entrepreneurs:

Name
Company
 Industry
Wuang Chuanfu BYD Autos, Mobile phone parts, batteries
Zong Qinghou & family
 Suning Household appliance, retail, property
In the Hurun list, which summarizes the 1000 richest Chinese, the number of billionaires increased from 3, only 5 years ago, to 130 today. Only one of them inherited his wealth.

When asked what (and when) mistakes are mostly made by companies interested in China, Zvi. Shalgo answers that most mistakes are made in the home country during preparation. A big mistake is the approach of many companies with the ambition of entering the Chinese market. According to Zvi the right approach is a long term vision, that includes, at least in the longer run, production in China. Simply going there to sell without monitoring closely is not advisable. Even though foreign
companies might hire Chinese agents, closely monitoring the developments of your business is a must. Furthermore, many companies that go to China have a short breath and expect to make a profit quickly. This is often not the case. Although presence on the Chinese market might be very fulfilling for a company as a whole, making a profit is often not easy.

Finally, an interesting approach of the mentality of the Chinese workforce. A standard critique is that although Chinese workers might be excellent listeners, in successful companies you also need independent thinkers. However, as Zvi Shalgo puts it: ‘You don’t need a lot of independent thinkers. If only 0,5% of the Chinese are intelligent and independent, that’s already a larger group than the population of my home country Israel!’
 
This summary is written by Harmjan Oldenbeuving, a Economics and Law student at the University of Amsterdam who is currently active in the FSA Research Project 2010 – China. A group of twenty talented master students (UvA/VU) will perform field research in China in the months July and August, tailor made for companies with activities or an interest in China. For more information on this project, please visit: www.fsaresearchproject.nl or www.fsa.nl