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China’s Business Practices With The US

August 9, 2011 by · Leave a Comment 

China and the United States have had a rocky and often times strained relationship with each other. Even though China is on the other side of the world and at times, has come under harsh criticism for its beliefs, the United States still opts to make products there.

Since 1971, when China finally joined the UN, business has been outsourced from all over the world to them. Most of the time, all that is required to setup a business is a few letters and a visa from China. China visas are fairly easy to apply for if you and your company already have United States passports or any other passport from one of the several countries that are members of the UN.

Labor laws are not steadily enforced in China, so getting cheap labor is pretty common among the business communities. Plus, China offers great incentives, including a deal they have worked out with the IRS, to give occasional tax breaks to new US companies that will take root in China and employ a percentage of Chinese citizens. The only problem is US companies still need to have a percentage of Americans working in their factories in order to receive the US tax breaks. The reason this is a problem is because there are limited amounts of China visas to go around. After so many are given out they put a hold on them until some start to trickle back in.

But is all this hassle really worth it? Applying for all those passports and visas, to save a few bucks on your labor cost. And what about the tax breaks that are offered for small businesses that do stay in America? Well, apparently the tax breaks for companies staying in the United States don’t add up to as much money that companies can save, by going overseas. Just look at the tags of the clothes hanging in your closet or the bottom of the latest new gadget you bought. Most of the time it will say “Made in China”. It is hard to find any US clothing labels in retail stores like Wal-Mart or Target anymore.

But the US government and labor board has vowed to try and put an end to all this outsourcing. It stated earlier this year, that on its list of priorities, cutting down the current percentage of items that are made in the overseas markets like China and India, is at the top.

Maybe we could just stop handing out so many United States passports to businesses that are already established in the foreign market. Maybe we should give better incentives for businesses of all kinds to stay right here in the US. But in the end America is about freedom, including the freedom to do business in another country or the freedom to acquire China visas.

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Motivation in Management

May 24, 2009 by · Leave a Comment 

What motivation does for management can be spectacular sometimes – it helps your employees reach their goals and objectives. You can usually find two types of employees in an organization: one of them has some internal self motivation, while the other one will only need motivation from time to time. Motivation can be temporary and external. If you’re dealing with the second employee type, emotions are what you’re dealing with, not logic.

If you want the output from your organization to be high, you should know that motivation is very important for your management. If an individual is motivated in a good way, you can feel the effects fast, even if the stimulus is external and they’re in a professional environment. It’s like when you go to a game and the crowd cheers the team that is playing.

Employees are the biggest resource that an organization can have. Even if you got the best equipment that money can buy, if you don’t have the people to operate it, your business doesn’t exist. Your employees should be taken care of like they are highly priced equipment. Just like you maintain your equipment, motivate your employees, to make sure they are prepared to work and they do it at maximum productivity. Motivation can be a simple pat on a manager’s back, but the best type of motivation is the timely one.

Some will want motivation to be goal oriented, so if reaching a target comes with a reward, the employees will be more performance geared. You can see benefits from this immediately, but the problem signaled by experts is that this type of motivation can make employees more competitive among each other, which can damage your organization’s environment of work. Basically, if we’re talking about motivation management, you should make sure that it brings the best rewards for the investment.

Failure and Success in Business

May 24, 2009 by · Leave a Comment 

A few years back, when I started my first company, I really missed a real business plan. Actually, I didn’t even know what that was. Trying to look back at that time, it’s actually kind of scary thinking about it and that decision wasn’t very smart. Ask any business expert out there and he will tell you that you should always have a business plan for your company and if you don’t have it, the chances of success are limited. Even though most startups are similar, in the beginning and failing department they can be different. You can define an entrepreneur as someone that starts and works on a business. What I use as a definition is “one that starts and works on a business despite the problems”. Statistically, 19 out of 20 new businesses will fail in the first 2 years of their existence.

What successful companies have in common is that they want to succeed even though there are many obstacles in their path. Speaking from my own experience, there were plenty of days when I was ready to quit. But, I continued despite all the problems. The key here is not as much your desire to succeed, but your refusal to fail. Failure shouldn’t be an option. When you make a decision, the process lets you choose either pain or pleasure. Your decision is based on what pleasure you get from the result, or on avoiding the pain. For me, failure has always been my pain. That’s why in business and life I will do everything possible to avoid failure.

You should never start a company dreaming that you will be in a sports car or on a yacht someday. You also shouldn’t be influenced by failure. Consider your success as being only based on your own performance.

Creating Growth Opportunities

May 24, 2009 by · Leave a Comment 

You know, nobody enjoys to think that they might fail. A leader though, should not even think about it. Still, in the real world, you should know that if you want to grow as an individual, failure is something that you go through and learn from. If failure is followed by insight and thought, you can grow and learn from it.

When there is recession, in times when businesses are closing and a lot of people lose their jobs, you should find ways that are less traditional, which allow you to perform better, both as an organization and as an individual. With the economy being as it is right now, you have a great opportunity to think over and re-evaluate yourself as an organization and an individual.

You can take NASA as an example, and their Sputnik experience. Once Sputnik was launched by the Soviets, NASA really kicked it off and scrambled to get back on track. The first rockets they launched without people crashed and burned. Still, they continued to work on it and eventually they were the first to step foot on the moon.

If you want to make sure you’ll regroup once you failed:

• Find perspective. Find out the failures of the past, like the early blunders that NASA made, or Edison’s and Bell’s disappointments. Your workers should be reminded that on the road towards success you will find failure.
• Examine the lessons. What I like about failure is the fact that it teaches you lessons. Remind yourself in the future, about the lessons that you learned.
• You should recognize the contributions of others. A lot of your workers have put as much hard work in that failure as you did. Their efforts should be praised and recognized.
Think about the successes of the future, learn the lessons of your failures and keep working.