China: Driving Sustainable Growth For China Operations

Last Updated: 20 December 2011
Article by Nigel Knight

Top 10 risks and opportunities

The current business environment presents a constant stream of both challenges and opportunities. Against this backdrop of change, the market's expectation is for sustained, year on year growth.

In June 2011 Ernst & Young launched "Turn risks and opportunities into results" global report. In this report, we explored top 10 risks and opportunities for global organizations.

Top 10 business risks in China:

  1. Emerging technologies
  2. Managing talent
  3. Expansion of government's role
  4. Cost-cutting
  5. Pricing pressure
  6. Social acceptance risk/CSR
  7. Regulation and compliance
  8. Market risks
  9. Slow recovery/double dip-recession
  10. Access to credit

Top 10 business opportunities in China:

  1. Investing in process, tools and training to achieve greater
  2. Productivity
  3. Improving execution strategy across business functions
  4. New marketing channels
  5. Excellence in investor relation
  6. Innovating in products, services and operations
  7. Investing in IT
  8. Emerging market demand growth
  9. Investing in clean tech
  10. Public-private partnership
  11. Merger & acquisitions

Who we are? What we do?

Ernst & Young is one of the largest accounting and business advisory firms in China. We have more than 10,000 people including 800 business advisory professionals across 20 offices in Greater China. In recent years, Ernst & Young has been making very significant investments in China reflecting our confidence in the China market for our clients and ourselves.

Because of its exceptional combination of size and growth, China has become not only a "Must In", but also a "Must Win" market for more and more multi-national companies (MNC). However, China is a vast market undergoing unprecedented change, posing challenges and complexities even for those with experience of operating in the market.

Our strengths

We apply a global methodology, tools and standards to client projects in Greater China. Our clients are constantly looking for the right balance between protecting the business and To compete and capture market potential, MNCs in China must continuously make sustainable improvements to their performance. To help you meet this challenge, we have assembled a team of experienced business advisory professionals who live in the market, know the market, and work in a proactive, collaborative and objective way.

Our professionals bring personal experience of working with major MNCs in China to make change happen. They can help you deliver measurable and sustainable improvement in the performance of your business by focusing on services in finance, supply chain and customer, risk management, supported by the key enabling competencies of program management, strategic direction, people and organization change, and IT advisory.

driving measurable value. The focus of our business advisory offerings helps us to span all aspects, across the key business functions and the competencies needed to operate successfully.

Dedicated Industry teams:

  • Financial services
  • Global Technology Centre (Telecommunication and High Tech)
  • Government
  • Automobile
  • Life sciences
  • Energy
  • (Utility and Oil & Gas)

Additional experience in:

  • Retail
  • Electronics
  • Consumer package goods
  • Chemicals
  • Oil & gas

Top 5 services for MNC's in China

  • Shared service center implementation – integration – optimization
  • Market entry and growth strategy development
  • Supply chain model improvement and process optimization
  • Corporate policy and regulatory compliance assessments
  • ERP system China rollout governance and risk management

Client experience

Case 1 - A global leader in the building and automotive industries

Project type: Shared Service Center (SSC) and Change Management

What we did:

  • Performed SSC design and migration strategy design
  • Feasibility analysis: business case development, SSC site selection and change enablement in Asia Pacific
  • SSC design: developed the target operation model
  • SSC implementation: managed site set up, people migration, change enablement and communication plan and budgeting

Client benefits:

Increased productivity, faster turnaround, improved compliance, and higher customer satisfaction.

Case 2 – A global transportation and logistics services company

Project type: China healthcare market entry and regulatory review

What we did:

  • Assessed the market opportunity and developed market entry hypothesis
  • Defined the regulatory implications of each market entry options
  • Designed business model for preferred market entry options including regulatory and licensing requirements
  • Advised on free trade zone implications and utilizations
  • Developed detailed execution plans

Client benefits:

Increased speed to capture market opportunity within well understood regulatory and risk framework.

Case 3 - A global chemical company

Project type: Operating model and supply chain review and implementation

What we did:

  • Conducted assessment of current operating model and identified opportunities to improve customer responsiveness and support an aggressive growth agenda
  • Prioritized improvement opportunities and develop detail design of high priority initiatives
  • Advised on high priority process improvements including order-to-cash, Finance and HR processes
  • Managed the program management office: conducted overall project level status reporting, risk and issue management, quality management, resource coordination and cross-work stream communication facilitation

Client benefits:

Exceeded growth targets, improved decision making speed and customer service.

Case 4 – A global computer networking and services company

Project type: Channel partner / distributor reviews – contract risk services

What we did:

  • Assisted the client's Asia Pacific and Japan brand protection by conducting reviews at authorized channel partners in all countries and markets across Asia Pacific
  • The reviews focused on uncovering grey market activities including diversion of products within and outside the approved territories resulting in potential dollar amount recoveries to the client

Client benefits:

Develop focused and sustainable contract compliance program that focuses on recoveries from grey market and counterfeit product activities. Success is measured by future dollars saved in preventing non-compliance at channel partners / vendors。.

Case 5 – A global consumer electronics company

Project type: Upgrade of ERP system

What we did:

  • Developed integration office to monitor and direct project execution
  • Project managed the blue print and implementation of data warehouse system and middleware integration
  • Applied risk management discipline to address significant complexity resulting from multiple divisions, geographies and vendors

Client benefits:

Project delivered on time and within budget.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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