In Search for the Soul of International Business

 “In Search for the Soul of International Business”, by Michael Czinkota hits the shelves just when needed most, given new environments, new approaches, new emotions and new commitments.

Contact Info: Book Ordering Link:https://bit.ly/2B2LAZS

Authors Website: http://www.michaelczinkota.com,

email: czinkotm@georgetown.edu

Phone: 202-687-4204

Social Media: https://www.facebook.com/czinkotm 

Sheri E. Dean, Marketing Director, Business Expert Press and Momentum Press 919-612-6706

Get the inside scoop on the story behind this book by contacting Michael Czinkota at czinkotm@georgetown.edu

Buy this book at https://bit.ly/2B2LAZSor at Amazon.com

A NEW BOOK FOR TEACHING AND RESEARCH AT CHRISTMAS

 

Contact: Michael Czinkota                                  Direct Phone Number: 202-687-4204

czinkotm@georgetown.edu                                Book Ordering Link:https://bit.ly/2B2LAZS

Why does a Georgetown University professor write about the soul and international business? Because they’re closely interlinked! An analysis of a new world, terrorism, the future of trade, and the search for the soul are what you find in this book.

 “In Search for the Soul of International Business”, by Michael Czinkota hits the shelves just when needed most, given new environments, new approaches, new emotions and new commitments.

 “I consider the soul the center of our aspirations and inspirations. Loss of soul typically connotes death. Maintaining a soul offers a reference point and stability. For one’s progress in thinking I aim to supply both content and context.”

Author Bio: Professor Michael R. Czinkota teaches international marketing and business at the McDonough School of Business of Georgetown University and the University of Kent in Canterbury. He served in the U.S. government as the Deputy Assistant Secretary of Commerce, as head of the U.S. Delegation to the OECD Industry Committee in Paris and as senior trade advisor for Export Controls.

Over the past 30 years he is consistently listed in every international marketing and business ranking as a top 20 author. He is a distinguished fellow of the Academy of Marketing Science and of the Chartered Institute of Marketing. He received the AMA Lifetime Achievement Award in 2007. The Universidad Ricardo Palma of Lima. Peru named its new International Marketing School after Czinkota.

Book Info:Trade and globalization inundate us with constant information, new concepts, and endless data. Individuals are caught in the whirl-wind of a fast-paced world, often without the ability to stop and think, particularly when it comes to issues of the soul.

With a foreword by Ambassador Dr. László Szabó ,a preface by the Rev. Horkan, and the humorous yet pensive illustrations by award-winning cartoonist David Clark, this book jumpstarts the reader’s ability for a comprehensive understanding of pressing international business and trade issues and their linkage to the soul.

Contact Info: FIX Book Website:Authors Website: http://www.michaelczinkota.com, email: czinkotm@georgetown.edu, Phone: 202-687-4204, Social Media: https://www.facebook.com/czinkotm

Sheri E. Dean, Marketing Director, Business Expert Press and Momentum Press 919-612-6706

Get the inside scoop on the story behind this book by contacting Michael Czinkota at czinkotm@georgetown.edu

Buy this book at https://bit.ly/2B2LAZSor at Amazon.com

Visit From Dr. Michaela Weber and Mr. John Diamond at the Seminar

Students heard from Mr. John Diamond, the Senior Communications Officer of the World Bank, and Dr. Michaela Weber, the Private Sector Specialist of the Bank. Mr. Diamond covered the mission and approaches of the World Bank, while Dr. Weber explained how to enhance small firm growth. Both provided an in-depth analysis of improving long term economic conditions in the world. What a great pleasure to have them visit!

All photos in Fall 2018 seminar credit by Bayley Wivell

 

In the Interest of Food

Michael R. Czinkota

While around the globe we all celebrate some form of Thanksgiving, the food consumed does vary. In the U.S. we consume Turkey – usually store bought, not hunted. Bavaria sees such celebration with Beer and Bratwurst. In China the celebratory meal consists of tea and Hot Pot.

“Everything can be solved by a hot-pot. If not, it can be solved by two.” These words are popular in China. A staple comfort food, the hotpot is a symbol of Chinese leisure life and culture. Similar to the French cheese fondue, the traditional Chinese dish consists of a communal pot in which small ingredients are dipped. The ritual always involves gathering around the dining table, with a large hot pot of broth placed at the center. While simmering, the broth is then enriched by fresh and raw ingredients. These include finely cut meats, vegetables, tofu, and seafood that are cooked in the broth.

The dish can be found in homes and in restaurants across China and other parts of Asia. Recently, the hotpot found its way in other regions around the world as Hai Di Lao International Holding Ltd. – China’s largest hotpot restaurant group in terms of sales – gained market shares abroad. Most hotpot restaurants will attempt to distinguish themselves with their unique flavors and taste, but nothing compares to Hai Di Lao’s secret recipe.

Aside from the delicious hotpot, Hai Di Lao’s success is due to its remarkable service strategy. Hai Di Lao aspires to make every customer feel special. Outside the restaurants, customers line up at the door, waiting with great patience as they indulge in Hai Di Lao’s complimentary services. Such services range from free snacks and beverages, to free massages and manicures. Once customers enter the restaurant, waiters greet them, always with a smile, while subsequently taking their order with speed and accuracy. If dining alone, the restaurant provides its customers with a stuffed toy to be seated in front of them, in order to keep them company.

(All photos credit to Shiying Wang, Georgetown University.)

Although the hotpot restaurant business is extremely competitive, the chain succeeded in standing out from other hotpot restaurants by creating the ultimate dining experience. Branches are managed directly by a shared and central distribution network, ensuring the standardization of food quality across all its stores. By offering exceptional customer service, and adopting a supply chain management system, all Hai Di Lao subsidiaries tend to fulfill, and at times exceed, customer expectations.

Gaining increasing popularity in China, plans call for the chain to enter overseas markets, including the UK and Canada. In late September, Hai Di Lao presented an IPO to help fund and continue its expansion. Initially priced at $2.27 per share, the public offering gave the firm a valuation of about $12 billion. Some people may argue that Hai Di Lao’s IPO value is a bit high, considering its lack of success in the United States.

Back in 2013, Hai Di Lao opened its first U.S. restaurant in Arcadia, California. The restaurant received negative reviews on Yelp and less and less customer retention. Reviewers complained about Hai Di Lao’s overpriced menu, and intrusive and incompetent staff service. Despite its roaring success in China, the company failed to stand out in the United States and was proven to be a big disappointment.

Fast forward to today – with an international expansion right around the corner, how can Hai Di Lao succeed outside of China? Hai Di Lao will have to face more than its competing hotpot counterparts, and learn from its mistakes with the earlier US expansion. Challenges will also come from the local food industry, including other comfort foods such as hamburgers and hot dogs.

In overseas markets, new conditions will apply. First, the chain needs to develop a differentiation strategy by offering complimentary services that are less intrusive and that adhere to U.S. standards. Since offering mani-pedis would be considered a health code violation and waiting to hand tissue paper to customers after washing their hands would seem strange, Hai Di Lao needs to tailor its services to fit the American market’s wants and needs. Such services comprise complimentary hair ties, phone chargers, restroom grooming kits, and an iPad ordering system. They also provide video conferencing rooms, in which customers can enjoy their hotpot experience while video chatting.

Additionally, the firm needs to focus on the product and pricing strategy. Chinese food in the U.S. is still labeled as inexpensive, fast food. Hai Di Lao prices its authentic dining experience between $30 and $50 per person, which may seem costly to American customers. In an attempt to retain more customers, the company can either expect to lower its prices to be more local-consumer friendly or to provide more value to its American patrons through its complimentary services.

To succeed in overseas markets, Hai Di Lao needs to gain a comprehensive understanding of its target markets. Hai Di Lao is strengthening its products by offering locally grown items. The flavors will reflect more local preferences and flavors. This strategy should attract the American consumer who is used to eating fast food and “bowling alone”. Hai Di Lao will take their habit of eating alone into account by offering small one-person pots, perhaps at the expense of an authentic, communal Chinese hotpot experience. Some people may argue that Haidilao’s IPO value is a bit high. It took place on September 26 and initially got the price at $2.27 per share, giving it a valuation of about $12 billion. But if the demand is strong and the company is able to appeal to the American consumer, Hai Di Lao will gain more deal size and American patrons willing to invest. As the Chinese proverb goes, “There are a thousand Hamlets in a thousand people’s eyes”. There also can be a thousand hotpots in a thousand people’s mouths.

Professor Czinkota teaches international business and trade at Georgetown University and the University of Kent. His latest book is ‘In Search For The Soul Of International Business (Businessexpertpress.com) 2018

Package from China: Who pays the freight?

Michael R. Czinkota


Running a small business which ships low weight merchandise, say 10 T-shirts or small hardware from China to the United States, made logistics cost easy. The U.S. provided for a large shipping discount of 40% to 70%.


Such generosity came from U.S. membership in the Universal Postal Union (UPU). Founded in 1874, the UPU is the international postal organization in Switzerland, committed to a smoothly running international postal system.

In 1969, the UPU’s developed country members implemented discounts for poor nations when shipping small parcels. China then was isolated with few outward shipments. In consequence, consumers in Washington, the shipping cost of a face cream was more affordable from China than from Los Angeles. Today, however, China delivers more than one billion small packages a year to the U.S. and the special discount treatment continued.

Then there came change. The Trump administration announced U.S. withdrawal from the UPU as of October 17, 2018. The objective was to arrive at competitive and fair global shipping rates. This move showed the Trump Administration’s willingness to leave quit multilateral agreements judged unfavorable to U.S. interests. Although the UPU withdrawal process takes one year, U.S. deep discounts for Chinese packages ended immediately.
Now China Post has introduced a new Express Mail Service. It raised the price of packages to the U.S. from $ 30 to $34 for the first 0.5kilogram shipped. Who pays, who benefits?
The United States Postal Service (USPS) can use higher payments from China. But transshipments through other nations and competition will lead to reduced shipping volume.

The price advantage of many Chinese e-commerce vendors declines. Higher cost of shipping reduces this advantage even further. Most endangered are eBay type international vendors. Sellers who compete on price alone face higher cost and more competition. To survive it will become new practice to find alternatives for product and service delivery both for processes as well as markets.

Adjusting the rules for new conditions makes sense. Few parameters conditions have remained static for 144 years. The UPU should get ready for a significant restructuring. What applies to China, the U.S., and other relationships, applies to other nations as well. One should expect further exploration of antiquated subsidies which have been bypassed by new market conditions. Such tracking can identify new opportunities for change and innovation.

De-subsidization will create market alternatives based on new forms of delivery. Such adjustments will be cost analyzed and competitively compared to achieve higher efficiency. Legislators and internationally active framers of distance trade, such as the World Bank and the World Trade Organization can use this opportunity to pinpoint, develop and scale up models which reflect transport cost sensitive sectors and practices. In addition to greater accuracy and fairness, the President’s initiative for higher prices can lead to higher capabilities, more efficiencies and better services. A good start!

Professor Czinkota teaches international business and trade at Georgetown University and the University of Kent. His latest book is ‘In Search For The Soul Of International Business (Businessexpertpress.com) 2018