James McGregor's One Billion Customers

Book Overview
James McGregor’s One Billion Customers is a guide to doing business in China. As the book notes, there is no single technique or formula to follow to yield a profitable and efficient foreign business. An organization’s success rather, is based on its ability to be flexible and creative within the context of respective situations. McGregor draws from that understanding to present the historical account of various foreign companies doing business in China. These lessons illustrate the obstacles and possibilities which lie ahead for any company entering China’s markets.

The compellation of past lessons caters to the old notion that history is to be learned from. Accordingly, McGregor’s accounts span across various political, economical, and historical perspectives, all contributing to China’s global emergence. Charlene Barshefsky’s “win-win” philosophy made way for China’s entry into the WTO. McGregor draws upon her business approach and China’s past to depict the Chinese business mentality and an effective approach to building a strong business foundation. The 1994 joint venture between China Construction Bank and Morgan Stanley created China International Capital Corporation, CICC, as well as a vast array of hurdles and complications. McGregor makes light of CICC’s struggles, pointing out the pathway towards making joint ventures a success. Lai Changxing’s kaleidoscopic reputations included that of an entrepreneur, a tycoon, a criminal, and a political refugee. Lai’s journey up and back down the mount of economical and political success has generated McGregor’s observations on Chinese corruption and anticorruption. McGregor’s personal experience with Xianhua news agency had a completely separate genre of difficulties. Consequently, McGregor teaches on the importance of having China’s interest at heart, a trump card against bureaucratic adversaries. McDonald Douglas’s entry into China, followed by Hughes, Loral, and other foreign satellite producers, brought American politics into the already complicated mix of doing business in China. Through the various past events tied into this aerospace saga, McGregor portrays the importance of lobbying as a crucial piece of the China business plan. The Chinese media gold rush, led in part by Rupert Murdoch and Liu Changle, was matched with Chinese resistance by the Communist Party. McGregor uses the political and corporate hurdles present in the expansion of China’s media industry to draw valuable observations and advice. His knowledge fuels a strategic plan for a successful business in China, including the structure of a company that exists harmoniously with China’s political parties. China’s telecommunication boom was equally impressive. This industry’s triumph is attributed to entrepreneurship and innovative thinking. McGregor uses this historical account to further illustrate China’s business mentality, government involvement, and views on intellectual property. The shift in education, and the up rise of SOHO China Ltd. and Hangzhou Wahaha Group Co, Ltd. concludes McGregor’s annotations. The final message echoes the purpose of One Billion Customers, to learn from the past to insure a successful business in China.

Each of McGregor’s chapters open with a glimpse of the story to come, followed by an overview. The journey then begins as McGregor describes the events leading to the successful, or unsuccessful, adventures of doing business in China. Each chronicle concludes with a passage of what the lessons learned mean to those seeking to do business in China. Furthermore, each chapter is summed up by “The Little Red Book of China,” a compilation of McGregor proverbs drawn from each chapter.


Contribution to Knowledge
McGregor’s chronicles are a source of historical, economical, and political knowledge. He infuses each account with the needed historical facts and cultural perspectives to paint a full picture. Although the lessons drawn focus on doing business in China, One Billion Customers serves as a guide to all who are influenced by China’s markets. The business seeking to expand its global boundaries to those of China will find the book’s price tag a moot expense in comparison to the high costs of a failed business. Corporations competing with companies emerging from China’s economical expansion will gain a competitive advantage in understanding their competition. Similarly, suppliers for companies who do business in China will gain a perspective of their future opportunities and hurdles by recognize the full business chain. Lobbyists, directly or indirectly involved in China’s markets, benefit from better understanding the evolving economy and business culture, which unarguably affects American economics and politics. McGregor’s work offers a vision of direction and hope to former communists seeking economic growth. Moreover, officials and executives related to any of the WTO’s members may seek better understanding of, and yield better communication with China by grasping the struggles and successes of the country as illustrated in One Billion Customers. Students seeking careers in business (international or not), politics, or law can use McGregor’s book as a glimpse of the vast economical future and opportunities which lay ahead. Engineers can better grasp their role in an outsourcing economy by understanding China’s role and emergence as a global player. The contribution to knowledge One Billion Customers offers is comprehensive and goes beyond the CEO seeking to expand corporate borders.

The guide’s easy reading style and organized structure coupled with valuable lessons learned caters to an audience ranging from high school students to corporate CEOs and everything in between. China’s influence on the global economy is undisputable. Similar to the benefit news journals bring to the doorsteps of millions every morning, McGregor’s One Billion Customers is a documentary of China politically, economically, and socially.


Strengths and Weaknesses
James McGregor’s business, political, and media background are the foundation of his works and account for many of his book's strengths. The author uses his expertise and experiences to create an intriguing and entertaining guide. Each lesson learned is directly derived from real past accounts. Cultural differences are put into perspective through the historical journey China has embarked on. McGregor is a strong and knowledgeable writer. The various tales at times overlap politically and/or economically. The book includes a list and descriptive “Cast of Characters,” which helps organize the multitude of contributors to China’s growth as mentioned by McGregor. In addition, McGregor's compilation of advice in his "Little Red Book of China" serves as a useful quick reference. The historical perspectives and invaluable advice compiles into the wonder of One Billion Customers.

The weaknesses of McGregor’s guide lay only in the relative shortness of his accounts. In his works, a significant yet small fraction of China’s vast expansion and emergence are covered. Although more then adequate to support its claims, the book left a residue of desire for more knowledge and understanding on how to do business in China. A possible second weakness arises from One Billion Customers single author. Although seemingly unbiased, the account from McGregor may have some factual inconsistencies to that of factual events. Research on the corporations involved yielded no great contradictions. Nonetheless, minor facts and variations in perspectives cannot always be fully accounted for.


Objections and Factual Errors
As an American making accounts of business in China’s there is an evident possibility for a bias report. Even so, McGregor justified cultural beliefs with historical support and explanations. Given the corporate and cultural backgrounds illustrated, coupled with McGregor’s experiences, the level of biasness was reduced to a minimum. In consideration to the nominal partiality, there are no great objections to this guide. In regards to factual errors, historical accounts by various corporations, made available on the World Wide Web, overall coincided with the author's tales. Factual errors if present, as addressed earlier were minute and seemingly irrelevant.


Authors Interpretations
In reading current economical events occurring in China, McGregor’s tales and advice quickly comes to mind. The Wall Street Journal’s recent story “Low Costs, Plentiful Talent Make China a Global Magnet for R&D,” echoed McGregor’s findings. The article touched upon China’s current patent protection and intellectual-property rights obstacles, and went on to illustrate China’s R&D push forward in the global economy. Much like McGregor’s accounts, these investments most often are part of a compromise between Chinese and foreign companies, all dancing to the tune of China’s politics. As illustrated by this article, the consistency in past and current events relating to China and McGregor's guide reinforces the validity of his interpretations.

The author’s invariable style in concluding lessons learned from factual historical accounts further justifies his opinions and interpretations. Additionally, McGregor’s business, political, and media background support his role as a mentor to other’s seeking to do business in China. His extensive accomplishments legitimizes his perspectives and admonitions.


Summary Statement
Each of McGregor’s stories are intriguing and admirably written. McGregor infuses his knowledge, experience, and China’s history into each chapter. Every lesson learned is applicable to each of McGregor’s tales. He has laid a foundation of knowledge for those seeking to do business in China, and those searching for a picture of today’s global economy. Furthermore, he has composed the comprehension needed to see beyond the daily news headlines, to the core of what is going on in China. There is truly no single technique or formula to insure a successful business in China. An organization's success rather, is based on its ability to be flexible and creative. A business' proficiency to adapt is directly related to its ability to capitalize on the existing knowledge base of past experiences. McGregor provides that needed knowledge base in his book One Billion Customers. His guide is a necessary read for executives, politicians, engineers, and business students irregardless of future intensions of doing business in China.