Dutch academic discusses challenges of doing global business

　　By Jin Zhu

　　The dean of the Rotterdam School of Management (RSM), Erasmus University, spoke before Chinese entrepreneurs in town last Thursday about the challenges of doing global business.

　　George S. Yip, who came to China for collaborative talks with Peking and Fudan University, said Chinese products overseas remain stuck with the reputation “low-priced an below quality.”lthough selling products at lower prices can result in a higher market share, this is only temporary. Creating famous brands and building a good reputation is the path Chinese enterprises should take in the global marketplace,” said Yip, a former Dutch national who now holds dual citizenship in the UK and US.In the first half of the year, 150 stated-owned enterprises sought mergers and acquisitions with foreign brands.

　　To many entrepreneurs, this was a good move while the global economy was at a low point, Yip said. But Chinese enterprises, especially smaller ones, should ensure they are well-prepared for such a step, he said.

　　“Many corporate decisio-makers commonly err in overestimating their capital capabilities and underestimating potential risks in the global market. And this is quite dangerous,” Yip said.The best way to penetrate the global market, he believes, is to partner with solid local companies who understand the ground situation, especially when doing business in Japan, Europe and North America.

　　As the dean of RSM, one of the world’s leading business schools, Yip encuraged owners of minor enterprises to earn a business degree, such as an MBA, to help them navigate the modern economic world.