IBSM 2007. Memories. Emotions. Thoughts

Part 3: Dong Guan

Day 3 (continue):

company visit again.
Aztech Communication Device (DG) Ltd

Aztech was incorporated in Singapore in 1986 and is listed in Singapore as well. The headquarters is in Singapore, having a major support office in Hong Kong for connecting with foreign investors in the PRD. Their R&D centres are located in Singapore, Hong Kong, Shenzhen and Dong Guan.
The one that we visited, is the manufacturing factory in Dong Guan.

I was quite looking forward to the factory tour because the modem I am using is from Aztech =)

the CCTVs!

accomodation for employees. Facilities in the executive apartments are water heater, air-conditioner television and elevator (coming up).

There's also basketball court, karaoke and a clinic. From these recreational facilities, we can see that the company takes care of staff welfare, simply because employees are very important assets to them.
When you take care of them in the good times, they will take care of you in the bad times.
I think it is very true.

Aztech is in a very suitable position to answer our doubts, being an overseas investor of China setting up a manufacturing base in the PRD.
Mr Jeremy Mun shared the attractiveness of the PRD:
1) Strategically located in Dong Guan, China. Proximity to Shenzhen and Hongkong will only take up 1.5 hours of travelling time.
2) Very low costs (labour, operations, materials)
3) Infrastructure established (ports, airports, roads)
4) International market
5) Strong state and city government support

Of which, our questions focused on the support from the government, and whether 'guanxi' is important. Mr Mun explained that having wide contacts is necessary, especially when the company is growing and earning more money, expectations will be higher. Building relationships (through golf or tennis matches), or networking, will aid businesses in being more aware with the environment, market and economy. These new things that are being shared may affect major business decisions. For instance, the customs officiers might even suggest to you things to avoid, what things that you should do and etc.

Learning issues:
1) Different countries will have different culture. Seek help if you face problem. I.e look for local China embassies or SPRING Singapore.
2) Having support from local government is important, especially in the PRD, as international businesses may need information that only the government has. "Guanxi" with the government is necessary. Mr Mun also said that he will try his best to follow the policies here.
3) Understanding the Chinese culture will definitely aid in business relations, for instance, networking. It will also prevent misunderstandings.
4) The more barriers of entry, the lesser the competition there will be. Only the survivors win.
5) Problems will definitely occur along the way. Aztech had walked out of difficulty in 1997. It takes determination and diligence to overcome it.
6) Know who are your good and bad customers. This is one of the business strategies that we should learn from as well.
7) A business should never stop looking for better venue/resources/alternatives in their operations. For instance, Aztech has moved from Singapore, to batam then to China, due to rising costs.

This is one of the best company visits =)

At night, we travelled to Guangzhou
and we had our dinner very late but the meal was.. fun!
It was the 盆菜。
;P

miss the good times;