- 02 Cover Story -

World Cup:Jade or Junk Jewlery?

CU iBUSJuly 2014

Published by the Undergraduate O

ffice, CU

HK Business School

Click to view the full issue

- 08 Spotlight -

L’Oreal Brandstorm 2014Top Performing Cadet

Champion of EYAcademy

- 07 A Day at Work -

F & B Assistant Manager

- 06 Faculty Spotlight -

Dr. Anthony Law

- 12 Experts Said -

Doing Business in China

- 12 Lovely Planet -

Seoul

ABBrEviATiOn inDEX

UGO Undergraduate Office

IBBA Integrated BBA

ABS Asian Business Studies

GBS Global Business Studies

IBCE International Business and Chinese Enterprise

PACC Professional Accountancy Program

HTMG Hotel and Tourism Management Program

IFAA Insurance, Financial and Actuarial Analysis Program

QFIN Quantitative Finance Program

QFRM Interdisciplinary Major Program in Quantitative Finance and Risk Management Science

GLEF Interdisciplinary Major Program in Global Economics and Finance

MESSAgE FrOM ThE EDiTOr

Dear CU iBUS readers,

Most students will agree that it is generally busier during summer vacation than term time, with internships, study trips, workshops, and summer camps among other activities fully taking up every available minute. This summer, there is yet another item filling up the agenda: the World Cup. While this once in four years tournament is a “can’t miss” event for soccer fans desperate to see their team achieve glory, for many others it serves as a very good case study of the hosting country both financially and economically. Is winning the bid to host a World Cup tournament something to celebrate or lament? Does it lead to better urban development or a waste of resources? In this issue of CU iBUS, we’ll look at Brazil, the host of World Cup 2014 and examine the benefits and damages done to this country.

Back to CUHK Business School, there is an important annual event taking place in July. The Business Elite Camp 2014 kicked off on July 2 as we welcomed one hundred young business enthusiasts from many different secondary schools to our campus to experience university life as a business student. Through a series of workshops, lectures and games, we would like for them to have a picture of what studying business at CUHK Business School is like. Most importantly, we hope they will enjoy the time spent here with our instructors, students and their counterparts from other schools.

I wish all of you a wonderful summer!

Prof. Stella SoEditor-in-chief, CU iBUS

EDiTOriAL

Editor-in-chiefProf. Stella So

MembersCarol HoIsadora HoElaine Leung

STUDEnT EDiTOriAL TEAM

Brian Kim (IBBA, Year 3)Jimmy Tsong (IFAA, Year 2)Eunice Jung (IBBA, Year 4)Grace Chee (BBA-JD, Year 3)Jeanette Lai (IBBA, Year 2)Josie Lau (IBBA,Year 2)Kama Wong (IBBA, Year 2)Lolitta Ho (IBBA, Year 3)Mandy Chiang (IBBA, Year 2)Morven Mo (GBS, Year 2)Myra Zhang (IBBA, Year 2)Shafee Mohammed (IBBA, Year 1)Tiffany Lam (IBBA, Year 2)Victor Tai (IBBA, Year 2)

COnTriBUTOrS

Alex Lau (IBBA, Year 3)Divya Verma (IBBA, Year 1)

COnTACT US

AddressRoom 616, Cheng Yu Tung Building, 12 Chak Cheung Street, Shatin, N.T.

Telephone3943 7746

Emailbba@cuhk.edu.hk

Facebookwww.facebook.com/CUHKBusinessUG

From the Editor

01

Editorial Pick

A good business should not focus only on making good profits, but should shoulder the responsibility in solving social problems. Starbucks has recently announced their partnership with Arizona State University to provide all U.S. Starbucks staff with the opportunity to reimburse tuition expenses for undergraduate education. Will this campaign expand to HK?

http://fortune.com/2014/06/16/starbucks-to-provide-free-college-tuition-for-baristas/

Did you have problem in making new friends as freshman on the first day of school? Now Coca-cola can help you! Check this out and see how successful this campaign is!

http://creativity-online.com/work/cocacola-the-friendly-twist/35624

Have you ever googled yourself and found search results that you’d rather not let anyone see? Now in the EU, you have the right to remove any unwanted search result that is "’inadequate, irrelevant or no longer relevant,’ except in cases of significant public interest.” Do you think it is a victory for privacy rights or a deterioration of internet freedom?

http://www.bloombergview.com/articles/2014-05-13/the-eu-doesn-t-like-its-google-search-results

Studying or working abroad can make us better thinkers - more flexible, creative, and complex, if we’re willing to adapt and learn from other cultures. Check this out to see how it proves. Students, join some overseas events in this summer!

http://time.com/79937/how-studying-or-working-abroad-makes-you-smarter/

[Did you know?] There are totally 4895 seats in our 7 libraries on CUHK campus!

Jun 20

Jun 6

May 30

“Hong Kong’s retail sales in April dropped the sharpest in five years, adding fuel to the controversial debate on curbing mainland tourist numbers.” Once hailed as a shopping paradise, is Hong Kong’s declining retail diversification taking its toll?

http://www.scmp.com/news/hong-kong/article/1524898/drop-retail-sales-biggest-five-years-surge-number-mainland-visitors

May 16

May 29

May 2

from CUHK Business School - Undergraduates Facebook

Major economic income of BrazilBrazil may be best known for the football talents it produces, yet sports is not a major component of its economy. Similar to Hong Kong, the service sector in Brazil is the largest contributor to GDP at 67%, followed by the industrial sector at 26.4%. Brazil’s service sector is comprised mainly of hospitality services, financial services as well as retail sales. While contributing a smaller percentage to its GDP, the industrial sector of Brazil is still diversified due to its abundant natural resources. Thanks to its plentiful supply of mineral ores, Brazil is one of the major suppliers of metals like iron, playing an important role to the construction industry worldwide. Besides minerals and metals, Brazil also produces textiles, shoes, and machinery, among others.

Relatively less important to the economy is the agricultural and livestock sectors which contribute only 5% to the overall GDP while employing about 15% of Brazil’s workforce. Renowned as the food basket of the world, this is one of Brazil’s fastest growing economic sectors. Nevertheless there is increasing concern over the harm caused to the environment by the expansion of the amount of arable land. Indeed, the majority of Brazil’s arable land situated in the Amazon basin. Expanding this area will inevitably lead to the destruction of the rainforest.

The much anticipated World Cup 2014 officially kicked off on June 12 in Sao Paulo, the largest city in Brazil. As fans at the Arena Corinthians sit in the audience stands cheering on the team they root for, who would give a thought to the costs and impacts behind these state of the art football stadiums where the grand tournament is staged? How are local Brazilians dealing with the financial and social impacts that come with the glory of hosting the World Cup? Will the World Cup make their lives better, or would it be nothing more than some costly glitter? Riding on the heat of the World Cup, we will give a general picture of measures taken by Brazil to prepare for it and differing views on whether hosting a World Cup is worthwhile.

World Cup:Jade or Junk Jewlery?

BrazilBrazil, officially named the Federative Republic of Brazil, is the largest country in South America. The fifth largest country in the world, its population is about 200 million. The official language of Brazil is Portuguese, reflecting its legacy as a colony of Portugal between the sixteen to nineteen centuries. English is not widely spoken in the country; the lack of English fluency often makes tourists hesitant in visiting.

By Jimmy Tsong, Student Reporter; Designed by Eunice Jung, Student Reporter

Source: FIFA

World Cup Preparation: Expectation and DiscrepancyWith its GDP composed mainly of the service and industrial sectors, is it worthwhile for Brazil to spend so much on a soccer tournament? According to estimates from the Brazilian Federal government, the World Cup would cost Brazil about 26 billion reais, equivalent to US$11.6 billion. This figure is three times the amount estimated in 2008. Inflation may have contributed to this discrepancy, but it is mainly the result of corruption and economic inefficiency. Let’s take a look at the money Brazil is spending in preparation for the tournament.

0303Cover Story

a. AviationAlmost all World Cup visitors would be arriving in Brazil by air. Therefore, infrastructure able to receive large amounts of air traffic is crucial. According to the figure from The World Factbook in 2013, there are a total of 4,093 airports in Brazil, making Brazil the second in the world in the number of airports. The São Paulo-Guarulhos International Airport in São Paulo is the busiest airport in Latin America in terms of passenger traffic at 36 million in 2013. However, the capacity of the Brazilian aviation system is questionable. According to a 2013 World Economic Forum study, while Brazil has the world's third-largest domestic air travel market, passengers rated the country 131st in terms of air infrastructure quality. It is predicted that there will be severe overcrowding as well as long flight delays during the World Cup even if the renovations are finished on time. Furthermore, a study by national development bank BNDES in 2010 said half of Brazil’s major airports cannot handle any more flights due to limited parking space as well as passenger space in the terminals. José Efromovich, CEO of airline Avianca Brasil, said that when Brazil plays Mexico in the northeastern city of Fortaleza, an estimated 100 planes will have to fly in and out of the city on the same day as there is no room at the airport to park even half of those aircraft.

c. Hotel

In preparation for the World Cup, Brazil has invested US$4 billion nationwide in building and renovating hotel infrastructures, of which US$1.5 billion is for building 250 new hotels in Rio de Janeiro (Rio). The Brazilian Tourist Board predicted that Rio will welcome 400,000 foreign tourists during the World Cup Finals. There will be an estimated 6,800 new rooms for the World Cup and another 13,000 for the Olympic Games in 2016. However, the hotel industry is fearing losses during the World Cup, with 50% of the hotel package reservations made for the World Cup in 2007 by Fifa's partner company cancelled. Overpricing of hotel rooms is also a major problem of the hotel industry in Brazil. Rio is ranked the world’s third-most expensive city for hotels, with an average price of US$247 a night.

b. TransportationNot only will air transportation be under great pressure during the World Cup, road transportation is no better. Brazil’s current transportation system is complex and unsatisfactory. After Brazil won the bid in 2007 to host the World Cup 2014, there were no shortage of suggestions for transportation projects, yet many of these plans remain on paper. One of the most appealing suggestions is a $16 billion bullet train project between Rio de Janeiro and São Paulo which did not come to fruition. According to the Matriz de Responsabilidades (Accountability Chart), 12 billion reais (about $5.44 billion) was budgeted for transit projects, but around 4 billion reais ($1.8 billion) was wasted when it became clear that there was no way the projects could be completed in time. On top of the ineffective transportation enhancement is the recent bus driver strike in Brazil. The strike in May was citywide, stopping about 70% of Rio de Janeiro’s nearly 9,000 buses from operating. If the same happens during the World Cup, it would be a major disruption.

d. TourismBrazil attracted 5.7 million visitors in 2012, ranking second in Latin America with Mexico being the first. During the World Cup, Brazil expects a total of 3.7 million tourists, with 600,000 of those arriving from abroad. However, Dennis Coates, Professor of Economics at the University of Maryland takes a dim view on the effect of the World Cup to the economy. He said tourism will not improve dramatically due to big events like the World Cup. He pointed out that in 2006, the revenues from tourism in Germany where World Cup 2006 was hosted was only US$70 million greater than the previous year. Similarly for Korea, the co-host of World Cup 2002, the number of tourists in 2002 was the same as in 2001. The recent strikes and riots may also make potential visitors hesitate further in visiting Brazil.

Source: FIFA

Aside from money issues, the preparation for the World Cup also affects the livelihood of the average Brazilian. A recent strike involving a group of teachers attacking the bus carrying Brazil's World Cup squad showed perfectly the grievances the average Brazilian holds towards the World Cup. “This country's priority shouldn't be the World Cup, it should be improving health, education, housing and public transport,” said Rui Costa, a striking teacher. Let’s take a look at the social impacts caused through preparations for the World Cup.

The Stadiums

The World Cup certainly created new jobs and business opportunities generated by the construction of stadiums and other facilities. However, does the country really need so many modern stadiums when the World Cup is over? For instance in Manaus, a city situated in the heart of the Amazon forest, a modern stadium was built for the World Cup, yet there is no professional first division soccer team in or near that city. The stadium will eventually become just a decoration after the World Cup. Even the soccer legend Romario said, "Maybe they'll stage concerts at those stadiums a few times a month, but that aside, they're a joke."

Social and Economic impacts of World Cup to Brazil

Urban CleansingBecause of the ongoing construction projects throughout the country, tens of thousands of people were evicted from their homes. It is also suggested that housing developments for the displaced families cannot match the demolition process, leaving thousands homeless. Worse still, among those forced out of their homes include drug addicts and criminal gangs. Without places to live, they often harass the neighboring residences and pose a threat to their communities.

Who is the ultimate winner of World Cup 2014?

FIFA, undoubtedly, is the winner of every World Cup. For World Cup 2010, the international soccer organization earned $2.4 billion from selling television rights and $1.07 billion from marketing rights respectively. The money went straight to FIFA but not South Africa which hosted the tournament. Nonetheless, FIFA claimed that $1.2 billion was spent on organizing the World Cup and about 70 percent of its earnings were used on tournaments and development projects around the world.

For the Brazilians, the FIFA World Cup is only a series of money transfers: from taxpayers to construction companies and Brazilian football clubs; from Brazilians to soccer fans worldwide and so on. Obviously, hosting the World Cup does not ensure a must-win situation.

0505Cover Story

Source: FIFA

About yourself

Could you recommend a movie that has touched you deeply?I have been deeply touched by a number of movies. One of them is 天作之盒. It tells the life of Dr. Tse Yuen Man (謝婉雯醫生). I respect her memory greatly as she sacrificed herself for the Hong Kong people when SARS was rampant here in 2003. I am also touched by the loving relationship between her and her husband (who died before her). Moreover, the theme song of this movie is very good.

Who is your greatest inspiration?My father is my greatest inspiration. He has taught me a lot about how to be a responsible person.

Do you have any phobias?I am afraid of large dogs.

Is there anything you are good at that would surprise us?I think I am okay at singing.

Dr. Anthony LawProgram Director,

BBA-JD

Serving CUHK since 2004 Affiliated to Shaw College

Birthday: January 22

About your profession

What made you decide to become a teacher at CUHK?I have been greatly inspired by some of the teachers who taught me when I was studying for my undergraduate degree. It was largely due to their example that I decided to become a university teacher. Of course, I enjoy both teaching and writing law books. I think the most challenging part of my job is to express difficult topics in a manner that every student can follow easily. I learn a lot from my colleagues as well as my students.

How is the knowledge of law important to Business students?Law is highly relevant to daily life. For instance, an accountant may need to help his client write a company prospectus; doing this requires legal knowledge. Also, many legal regulations concern consumer protection and are therefore important to business students.

Faculty Spotlight

About CUHK

Is there an interesting course outside the Business School that you would like to recommend?I believe that some of the general education courses offered by the colleges can be interesting to students.

What is your favorite corner at CUHK?I enjoy walking in the Chinese Garden of the Chung Chi College. I go there quite often.

Can you share with us an unforgettable moment during your teaching at CUHK?I was so happy when I received my first teaching award in 2005.

11:30amNext is our own Blue Bar staff meeting. We have different service topics each week and this week’s topic is ‘Greet the guest’. Seems easy? We believe that there is always room for improvement even for seemingly simple tasks. It is then followed by ‘Tasting of a new item’, in which all of us taste one of the buffet items together. It helps us to learn the dish’s details so that the staff can be more confident when introducing the dish to other guests.

12:00nnLunch buffet starts. Unlike the breakfast buffet, most of the customers are nearby local visitors. The service flow is much slower compared to breakfast. I have more time to talk with the regular guests and check satisfaction on first time visitors.

2:00pmLunch break time. I always love the Salad Bar provided by our staff cafeteria! It comprises over ten ingredients so that I can pick my favorites. The lunch break is also a great time to approach people from different departments. No talking about work though.

3:00pmMy ‘administration’ session begins. This is the time for me to contact different departments and suppliers as all buffet sessions have ended and the evening shift has taken over the service. We are looking for a new design for the cocktail shaker to replace the plain and silver one we are currently using. We are thinking to incorporate more Blue Bar signatures into it – perhaps a Blue Bar logo and a characteristic Blue Bar colorful pillar will do. Time to look for potential suppliers and get the permission and support from the Hotel for implementation.

4:00pmReport to our director about my Seychelles Trip. Four Seasons Hotel offers employees complimentary rooms at overseas Four Seasons Hotel locations so we can experience the services provided by our chain’s hotels. I just came back from the Seychelles, which is located in Southeast Africa. The view there was stunning and the lifestyle was extremely relaxing. I also exchanged some useful tips on hotel management with the managers over there and brought back some good ideas that we can learn from them. It was a truly fruitful trip and recalling it is a perfect way to wrap up the day!

Summer Xiang (HTMG,

2011) joined the “Manager

in Training” (MIT) program

at Four Seasons Hotel right

after graduation.

5:40am Wake up time - the breakfast buffet starts at 7:00 am. I quickly get dressed and put on my make-up to get ready for today’s work.

6:20amOne of the best things about living in Central is being able to walk to work. The short walk and the fresh air always refresh my mind.

6:30amNow at the Four Seasons, and changing into my uniform. I fold my clothes neatly into a pile and store it with my personal belongings in my locker.

6:35amBreakfast time. All employees are entitled to free meals in the hotel! I pick some cereals and a tuna sandwich to start the day.

6:50amCheck the hand-over notes from last night’s shift and luckily there aren’t too many matters to follow up today.

7:00amEverything is in good shape for the breakfast buffet: no failure of the lighting system; nothing out-of-stock; all the food is ready, etc. The breakfast buffet is the busiest period of the day but luckily most customers are in-house hotel guests, and so we can predict the number of customers by checking the percentage of hotel rooms occupied.

8:00amIt’s a busy morning that requires extra effort in monitoring the service flow and utilizing the manpower efficiently. With this number of guests, it is also a great time to memorize details about the regular guests: their names, preferences, and special requests among others.

11:00amBreakfast period ends and the Food and Beverage daily meeting begins. With colleagues from different units all gathered together, we highlight the VIP guests, share our daily experiences, the glitches, comments from guests, etc. In addition, the meeting is also where we discuss about the revenue and how we can make us more profitable.

Food and Beverage Assistant Manager

Summer Xiang

07

A Day at Work

During this program, she was rotated to four different departments and was promoted to Assistant Chief Stewarding in August 2012. The following year, she was transferred to Blue Bar, a stylish bar at the Four Seasons Hotel Hong Kong that provides beverages, breakfast as well as lunch buffet services to its in-house hotel guests and visitors, as the Assistant Manager.

May 8, 2014By Jimmy Tsong, Student Reporter

Organized by L’Oreal Paris, the L’Oreal Brandstorm competition is an annual event offering participants the unique experience of being Marketing Directors for one of L’Oreal different brands. This year’s Hong Kong Finals was held on the CUHK campus. This offered all CUHK students a chance to participate as audience members and learn from all the competitors including those from the other local universities.

This year’s competition required competing students to develop a new product for Kiehl’s Men’s Collection, a brand dedicated to providing unique skin and hair care products. The aims were to analyze the existing men’s cosmetic market and to implement multi-channel strategies to expand Kiehl’s share in it. Cazev Fung (HTMG, Year 3), Yanice Mak (IBBA, Year 3) and Edmond Lam (IBCE, Year 3) competed as Team Rockefellers, winning first runner-up. Let’s hear from Yanice about their experience in the competition.

Why did you name your team “Team Rockefellers”?Rockefeller Center is a national historic landmark in New York. We chose this name as Kiehl’s was also founded in New York as a pharmacy.

What were your strategies in fulfilling the DNA of Kiehl’s?The biggest challenge was that we had to understand the targeted user’s behavior. We had to design a skincare product for men, taking into account the striking differences in user habits between men and women. While most ladies prefer using a broad range of skincare products, men prefer such products to be fewer, simpler, and more straightforward to use. We had to bear this in mind throughout the competition. Therefore we developed the Instant Rescue Energizing No-Shine Spray, providing handy and instant skin care for men.

In addition, we also put great emphasis on aligning our product design with the DNA of Kiehl’s. Due to its pharmacy origins, Kiehl’s stresses using scientific approaches towards its products, for instance, they emphasize use of natural extracts and ingredients. Another characteristic of Kiehl’s is that they have special approaches to marketing. For example, they rarely use advertising, focusing its effort on product sample distribution and PR instead. Kiehl’s is also known for their charitable efforts, emphasizing the environment, children and Aids research.

Our dressing for the presentation also aligned with Kiehl’s image. Kiehl’s most prominent icon “Mr. Bones”, which looks like a human skeleton, was designed initially as a

L’Oreal Brandstorm 2014

tool to educate people on the ailments of the body. It now serves as a reminder of Kiehl's origins in pharmacy and commitment to science. To stick to the tradition and spirit of Kiehl’s, we decided to wear lab coats to showcase our professionalism during the presentation.

Did you seek advice from any mentors? If so, what advice did he/she give you? L’Oreal organized three coaching sessions conducted by their Product Manager. They taught us the ‘into industry’ approach, which gave us some insights on skincare product development. This helped us develop our long term product strategy.

Second, there were also mentors from McCann. They gave us general advice as well as strategies on product launch campaigns, e.g. to have a focused theme for the whole campaign in order to communicate the key product features and benefits; and to utilize various channels in order to create buzz and effectively reach the target market.

Overall, what have you gained from this experience?We learnt a range of practical skills as well as the responsibilities of a Brand Manager. In fact, L’Oreal Brandstorm also serves as one of L’Oreal’s tools to recruit potential Management Trainees (MT). Outstanding participants may be fast tracked with higher priority for job offers. This highlights the importance of the competition.

Any suggestions for students who wish to take part in this competition next year?As L’Oreal’s products are largely Fast Moving Consumer Goods, products which are generally sold quickly at relatively low price. If the students can familiarize themselves with the marketing strategies for such products, more insights can be generated.

how then, did you prepare yourself for interview opportunities like this?

I have participated in case competitions since high school. I believe this to be a good way to put the theory I learnt from university into practice. There is no other or better way to start gaining practical experience than through joining case competitions. Also, I am able to improve my analytical and logical thinking skills. Thanks to the competitions that I participated in, I had many opportunities to network with people who have the experience and are able to share them. Furthermore, listening to my fellow competitors’ presentation styles and ideas gives me the opportunity to learn from them and to further improve my train of thought.

Overall, what have you gained from this experience?

Receiving this award has made me more motivated in facing new challenges and to make full use of every learning experience during my study at CUHK. Most importantly, I am so glad to have met the people in my team and we cooperated so well even though we came from different universities. In my team, I saw a united group of people and I never felt any difference in any of my teammates despite the differences in our respective backgrounds.

09

Spotlight

Contributed by Divya Verma (IBBA, Year 1)

A one-month internship opportunity at Ernst & Young (E&Y) may be something that every business student aspires to, but opportunities like this do not come easily. Back in March, Integrated BBA student Divya Verma (Year 1) was crowned the Top Performing Cadet Champion of the EYAcademy CSR Challenge 2014 launched by Ernst & Young. As the top performing EY cadet, Divya won an opportunity to do a one-month internship at E&Y. Let’s see how her experiences competing in different case competitions prepared her for the achievements in the EYAcademy CSR Challenge.

Top Performing Cadet

Champion of EYAcademy

The EYAcademy program

I see the three-year EYAcademy program as a good opportunity for students to receive mentoring and training from a global firm like Ernst & Young. In the first year, all cadets need to participate in a compulsory CSR Challenge in which we suggest a feasible business start-up in the aspect of entrepreneurship; while the second and third years are for networking, training, getting to know the firm better and to be fast-tracked for internships. Although my team did not win the Challenge, I was selected by my team members, senior cadet mentors and mentors from E&Y to be the top member of the team. I was interviewed in a group with other nominated cadets and was honored to be awarded the championship.

What distinguished you from the other selected cadets?

The interview was in group format in which we had to discuss how to maintain work-life balance. I believe what made me stand out in the interview was my train of thought and how I managed to consider different perspectives on work-life balance. For example, I discussed not only what an employee can do, but also what the family and what the firm can do to ensure that their employees can attain work-life balance.

GLOBE Study Trip 2014

Coffee or tea? We are all flight attendants for a few hours.

Our students presenting a souvenir to Mr Cameron Tough, Head of Investor Relations and Corporate Secretary of Adaro Energy.

Forty eight GBS students and Mr. John Lai, Program Director, went on a study trip offered by IBBA4010 which aims to provide an opportunity for students to integrate knowledge acquired from their business studies with real business issues in Asia. Here they are in Indonesia visiting companies and attending seminars.

17-27 MAY2 0 1 4

Let’s practice our culinary skills with the locals.

Visiting Borobudur, a 9th century Mahayana Buddhist Temple in Central Java.

Let’s dance, Indonesian style!

11

Lightbox

Visiting Jogja Invest BKPM.

Key socioeconomic trends• Urbanization: The share of urban population

in China rose from 26% in 1990 to 52% in 2012, driving economic growth. To sustain the momentum, China has to tackle issues in household registration (户口) and land reform.

• Rising living standards: China’s GDP per capita grew from $205 in 1980 to $6,091 in 2012 (nearly a thirty times increase). From a study by the Boston Consulting Group (BCG), China will be the world’s largest luxury market in 2015. The growing middle class presents significant business opportunities.

• Aging society: After enforcing the one-child policy for over thirty years, China’s fertility rate of 1.5 to 1.6 children per woman is below the replacement rate of about 2.1. It now faces a different population fear: a quickly aging society with too few young people to support their parents and grandparents.

How to succeed in China• Localizing your products: Some successful

examples are KFC and McDonald’s which offer “chinacized” fast food such as “Old Beijing Chicken Roll” while reducing the amount of food made from beef. These products are tailored for China and are not available in other markets.

• Establishing Guanxi (關係): Guanxi is informal interpersonal relations between people that has to be cultivated and accumulated through social events and giving favors.

• Understanding the State: The Chinese government has strong power both economically and through non-economic levers. Understanding their decisions and expectations mitigates potential risks and uncertainty. It is like a patron-client relationship where supporting the Government leads to trust and supportive feedback.

China is playing an increasingly influential role in the world economy and is now the second largest economy in terms of GDP with a population of 1.3 billion. Yet, it remains a developing country and is structurally quite different from the developed economies. To deepen our understanding of China, during a study trip to Shanghai our host, Fudan University had invited Prof. Yijia Jing, Professor in Public Administration, to give us a lecture on China’s macro-environment.

E x p e r t s S a i d

Doing Business in China

By Alex Lau (IBBA, Year 3)

Must-do/eat things: nAnTA Show: The longest running show in Korean history, the NANTA show gives a taste of Korean cuisine as well as theatrical art!gwangjang Market: Think you can try the authentic Korean spicy rice cake almost anywhere in Korea? Not until you visit Gwangjang Market would you really understand what Korean street food is really supposed to be like!

Must-visit places:gyeongbok Palace and Changdeok Palace: Soak in the ancient beauty of the Korean culture!namsam Park: Located at the heart of Seoul, you can enjoy the view of the entire city from the top of the mountain in this park. If you go with a special someone, remember to “lock up” your love for each other with a padlock on the “love fence” at the top of the mountain!Bukchon and insadong: A must-see neighborhood that contains both the cultural and the artistic side of Seoul – best appreciated over a cup of tea at a local tea house!han river: Cycle along this river that runs through Seoul and feel the refreshing breeze in the middle of a bustling city! After sunset, let the wonderful night view of the many bridges in the city of Seoul take your breath away!hongdae Street (hongik University Street): The place to be for young people like us! It’s the hub of youth and indie culture, as well as funky galleries and great clubs!

SeoulBy Brian Kim

Student reporter and international student from Korea

Love l y

P l a n e t

Bukchon

May 17 - 23, 2014

Global Business Studies students Sam Luk (Year 4), Kate Tsoi (Year 2), Cherry Yau (Year 2) and Michael

Ng (Year 3) achieved great results in the Cross-strait Green Competition under the Green University

Consortium. Competing against teams from Taiwan, Nanjing and Hong Kong, their green business idea

“Hairy Tale (髮寶)” won them the 1st Runner-Up in this case competition held at Nanjing University.

Cross-strait Green CompetitionN e w s r

oo

m

13

June 7, 2014

Global Business Studies students Isla Yu (Year 3), Cherry Yau (Year 2), Kelly Wong (Year 2) and Alice Kung (Year 1) won the first runner up in the CIMA Global Business Challenge 2014 – Hong Kong Final. The team was also awarded the Best Video Award and the Best Presentation Material Award.

CIMA Global Business Challenge 2014 - Hong Kong Final

Date School / Event Speaker

May 28 Ho Lap Secondary School Dr Andy Wong, Assistant Dean, Undergraduate Studies

May 23 Information Seminar for International School

Counsellors

Dr Andy Wong, Assistant Dean, Undergraduate Studies

May 15 Diocesan Boys’ School Prof Dennis Fan, Integrated BBA Program

Mr John Lai, Global Business Programs

Dr Edmund Wong, Professional Accountancy Program

Prof YF Chow, Quantitative Finance Program

Prof Albert Wong, Insurance, Financial and Actuarial Analysis

May 10 Consultation Day for Secondary 6 JUPAS

Applicants

Dr Andrew Yuen, Assistant Dean, Undergraduate Studies

Dr Anthony Law, Professional Accountancy Program

Dr Joyce Wang, Professional Accountancy Program

Ms gentiana Cheung, Hotel and Tourism Management Program

Prof Chow Ying Foon, Quantitative Finance Program & Interdisciplinary Major

Program in Quantitative Finance and Risk Management Science

Prof Albert Wong, Insurance, Financial and Actuarial Analysis

Prof Sunny Kwong, Interdisciplinary Major Program in Global Economics and Finance

May 7 TWGHs Mrs Wu York Yu Memorial College Dr Andy Wong, Assistant Dean, Undergraduate Studies

Outreach efforts — admission talks

https://www.facebook.com/CUHKBusinessUG