Learning From Others - Networking

This week I had two different and very interesting lunches that I would like to share with you.

The first was the British Business Group lunch, which was held by the Ambassador at his residence. This is a very useful activity held every two months, which allows senior management of British companies in the market to share their views on specific topics that might affect their business, and to share their experience with other companies.

From the Embassy position, this allows us to get other perspectives on what is happening in Chile and it helps us to analyse how to develop our job to best support British companies in Chile or those entering the market.

On this occasion, GlaxoSmithKline kindly agreed to share their knowledge of Avian Flu preparedness by the Chilean government, and the steps that organisations might take to ensure business continuity should any such incident occur. Although the biggest risk for this post is to face an earthquake,  the Embassy has developed a contingency plan that will help us to manage any unexpected emergency involving British nationals. According to Peter Connolly, Deputy Head of Mission, although the avian flu issue has dropped out of the news lately, the risk of an outbreak remains real, and it is important for all organisations to maintain up-to-date contingency plans. The Embassy has an avian flu contingency plan which is designed to ensure that in the event of an outbreak, we will be able to (a) ensure the welfare of our staff, (b) provide services to the public and (c) keep our business activities going as far as possible.

Although it is almost impossible to anticipate when an emergency will occur, it is key for business and for any organisation to have a plan to know what to do and the steps to follow in  the case an emergency arises.
 
The other lunch was with Andronico Luksic, a well-know businessman in Chile, who invited a group of young professionals to have lunch at the Bank of Chile. The Luksic Group, controller of Quiñenco S.A., is a Chilean business conglomerate with a portfolio of companies involved in financial services; food and beverage; telecommunications, and manufacturing. Sales of the group’s companies reached nearly US$3.2 billion in 2006. Additionally, through Antofagasta Plc, they participate in the mining sector.

According to Mr. Luksic, their proven track record is based on their ability to identify business opportunities through their extensive business network, acquire a controlling interest, and utilise this as a base to further build their interest in a given sector. In the past, Quiñenco has often capitalised on its position by seeking add-on acquisitions or strategic partners, which contribute additional know-how and funding. 

Recently Banco de Chile announced a strategic alliance with CitiGroup. According to Andronico Luksic the alliance between Banco de Chile and Citigroup started to materialise a long time ago, by first creating personal links and building confidence between the people who were leading the strategic changes in both companies. During the lunch, Mr Luksic also mentioned that people usually think that there are few opportunities in life to develop a business, but according to him there are plenty of opportunities. A good project will always find financing and we should trust ourselves and move forward.

This made me think that often we create our own barriers to prevent the pursuit of projects.

Posted at 17:32 26 October 2007 by Maria Pia Gazzella  | 

SHORT (LONG) WEEK

This week has been a week unlike all the rest. Monday was a Bank Holiday in Chile and on Tuesday my eldest son had an operation, so I took off one and a half days. I wanted to be with him to help him get better more quickly. I finally got back to work yesterday afternoon. It was an intense afternoon with a lot of general enquiries and coordination of meetings and activities.  In the evening I took part in a charity supper hosted by a foundation that some of my MBA colleagues and I are doing some free-consultancy work for.

Today I am representing the Ambassador at the Santiago Chamber of Commerce’s Business Meeting (CCS) with diplomatic delegates. Later on this afternoon, I will be participating in the International Environmental Conference at the ExpoAmbiental 2007 environmental fair. British companies will participate at the fair, and today’s event will be attended by Energy Minister and the Environmental Minister. There will also be an official supper tonight for industry and government representatives. The environment sector offers two areas of special interest in which the Embassy has been working recently: CDM and climate change, and waste and waste water (especially in the mining industry). These areas offer specific opportunities for British companies, some of which are already working successfully in the marketplace. 

Tomorrow, I am attending a meeting with the Chilean Construction Chamber (CCS) and the Technological Development Corporation (CDT). They will give me a debriefing on their visit to the UK that I helped coordinate. The visit, which took place toward the end of September, enabled Chilean government and construction industry representatives to attend the Constructing Excellence Forum on technological innovation in the construction sector. The attendees also met up with industry companies and associations such as British Expertise. Last week, in the context of the FCO’s climate change objectives, a British expert was invited to participate in the conference on sustainable construction organised by CDT. The visit was co-ordinated by the Embassy`s political section. In the same context, toward the end of 2007 we will participate in a technological delegation to the UK whereby Chilean architects will meet up with their British peers. The event is being organized by Monica Eggers from the commercial section. The aim of these activities is to promote British technologies and management models and to strengthen the trade links between Chile and the UK, via the transfer of information and knowledge.

Well, given that this has been a two and a half day week, I’ve still got a lot to do… so I’m off to the CCS meeting. 

Posted at 14:40 19 October 2007 by Maria Pia Gazzella  |  Comments[1]

Day-to-day Work: The OMIS (Overseas Market Introduction Services) System

UKTI's new core strategy places special emphasis on OMIS (Overseas Market Introduction Services). OMIS is a flexible tool enabling direct communications between the companies and the commercial teams in Embassies. It provides assistance offering a broad and creative range of activities to suit companies´needs (http://www.fco.gov.uk/Files/kfile/UKTIOMISLeafletUpdateJuly07.pdf).

I am currently working on three OMIS, focused on three different sectors:
1. Transport, underground – assistance on PR and support with the tendering process;
2. Public-private partnership (PPP) in hospitals – market overview, market entry strategies and programme of meetings; and,
3. Agriculture - the introduction of new varieties of berries in Chile and identification and assessment of potential clients or agents.

I really enjoy working on these OMIS.  I have done OMIS for a wide range of sectors from pest control systems to power generation, railway sleepers, plasma by-products and, consultancy services. Obviously, these areas have little in common. However, on a personal level, three key elements or capacities enable me to efficiently formulate these differing activities simultaneously.

First, in the context of offering the best feedback to the client, it is essential to acknowledge that focusing on unrelated areas makes it impossible to become an expert in each. Thus, it is important to have the capacity to contact relevant sources of information and clients in the local market as quickly as possible. To do so successfully, it is vital to have access to an established network of contacts that will enable a quick response to the varying interests of British companies.  The personal contact with people from different sectors is what makes my work refreshing.

Another key aspect is a quick understanding of which parts of an offer made by a British company actually add value to the Chilean market, and can thus be appreciated by the latter.

Finally, keeping constantly up to date with world developments is also a key factor to understanding and tapping into the opportunities that the Chilean market has to offer to British companies. For example, public-private partnerships have developed successfully in Chile. The British Embassy in Chile has worked in conjunction with the Chilean government, especially with the Health and Public Works ministries, in order to promote the British model.  In this way, we also act proactively; creating market opportunities that didn’t previously exist.  This presents distinct advantages for British companies that have already developed their expertise and are now exporting it to Chile (http://www.fco.gov.uk/Files/kfile/fco_blogMPG3english.doc).

Posted at 15:22 12 October 2007 by Maria Pia Gazzella  |  Comments[1]

Conducting Business in China

This is my first experience in blogging; I would like to start by thanking Federico and Dany for their comments and support.

 This week has been quite busy with lots of catching up to do since I have just returned from China, where I was invited to participate in a training course on "Conducting Business in China" organised by the Tsinghua University, one of the leading universities in China. In a globalised world, understanding the trends and changes are key to being successful. China is clearly influencing the world scenario. Being a UKTI Trade and Investment Officer is not just about knowing our local market but also about understanding global competition and being prepared for new challenges.

As the Dean of the Law School mentioned: people that visit China for a day could write a book, people that have stayed for a month could write an article but people that have lived in China for a year could hardly write anything at all. The deeper you go into China, the more complexities you see, making it almost impossible to describe. So, after two weeks in China, I would like to share with you a few of the things that helped me to understand the country better. The first aspect is understanding that there are 3 cultures with conflicts and convergences: Confucionism, Socialism, and Capitalism. After some days I realised that their economic model is a Capitalism-Confucionism mix. One incredible experience is the prevalence of bargaining. Coming from a country where bargaining is uncommon, after getting 50% off I thought I was getting a pretty good deal, but I was later surprised to get 90% off in other items.

 In China change is cyclical and harmony is a priority. Their way of thinking is circular: with everything having an effect on the next. This is a stark contrast to the linear thinking used in western countries, where an initial idea leads to a conclusion following a sequential path. As a result, their society is based on relations rather than laws and regulations. However, the high growth that they have experienced, 9% average growth in the last 25 years, has created significant gaps. The law has not been able to keep pace with the rapid social changes experienced. There are problems with law enforcement, local protectionism, and a government with a strong presence in all areas (even in private sectors). It is very interesting to meet people in their 40s - 50s who are participating in China’s process of growth and who also expecienced the Cultural Revolution. One professor from the University, PhD in Harvard, and ranked among the top 10 leading economists in China, grew up among peasants since, as a result of the Cultural Revolution, his family (distressed diplomats) was forced to live in the countryside. He commented that it would be very difficult for him to have a class reunion due to the huge disparities among his childhood friends.

China now represents 17% of the world’s economy and is an open economy. Imports plus exports represent 70% of GDP, while in the EU the average is 50%. However, there are tremendous regional disparities, little consumption and a high savings rate (25%pp). I think China will keep surprising the world and we need to keep an eye on it.

Posted at 16:56 03 October 2007 by Maria Pia Gazzella  |  Comments[2]