Stephanie Nowling

Celebrating Independence Day – Chilean Internship Style

GPMBA Class of 2011 is moving right along — nearly halfway through our internships already! As you’ll know if you read my last post, I am interning in Santiago, Chile. The spring weather here is becoming increasingly gorgeous and lucky for me, last week was Las Fiestas Patrias holiday or Chile’s Independence Day! The celebrations for this weekend (celebrated primarily on September 18-19) are so important that in addition to the aforementioned 2 names, there is yet another informal name: “dieciocho” or simply “eighteen” in Spanish.

While the festivals / fairs or “fondas” and cookouts or “asados” and other fiestas were fun cultural experiences for me during the weekend, these festivities are interesting and relevant with regards to my internship and the associated corporate work culture at my office too. As I mentioned in my last post, the Chilean work week is longer than normal US full time weeks (typically 45hrs). The corporate culture at my company a mix of “typical North American” with Chilean. Unlike my previous work experience, greetings are very important — a kiss for hello and goodbye, even if this total interchange last less than 5 minutes. This creates a very friendly atmosphere, as does the very modern, open office layout and design with lots of natural light and glass. Yet at times, it seems to me, that this friendly environment comes at the expense of work efficiency.

So in addition to the daily work culture, I also have gotten to experience Chilean holiday work culture! Fortunately the Friday commencing the Fiestas Patrias events, we were able to have an early “Happy Friday,” finishing work at 1pm for a work asado celebration. The asado was complete with Chilean empanadas (fried pastry filled with meat, onion, an olive, raisins and hard boiled egg), sopapillas (sweet fried breads), choripanes (sausage on a bun), anticuchos (meat skewers) and sodas (no, the company did not provide the traditional alcoholic Chilean dieciocho beverages like piscos or chichas).

In addition to all the delicious foods, a Fiestas Patrias event would be incomplete without dancing cueca, the national Chilean dance. It is an interesting dance, including sliding, stomping, clapping and handkerchiefs. Yet the most unique thing about the cueca is the fact that the male and female dancers do not touch but must maintain eye contact until the end of the dance. To get into the festive mood, my company offered complimentary (and voluntary) post-work cueca dance lessons during the few weeks leading up to the holiday. Unfortunately my schedule (and lack of rhythm) prevented me from participating, but at the work asado my fellow coworkers performed for us!

All in all, I would say that the excited holiday environment was more interactive than my US company holiday experiences, at least for Independence Day (but perhaps that is in part because I worked for a British company in the US, so 4th of July celebrates our independence from them…). The weekend itself was a great experience going to fondas, visiting a nearby artisan town called Pomaire, and of course, more asados! I enjoyed a long weekend with Monday off and even got to see the military parade to the Escuela Militar academy near my apartment.

Of course after all the festivities, it’s back to work!

Internships Already!

As I take a moment to reflect, all I can say is WOW. This past year has flown by! I cannot believe that we have already survived all the classes, traveled around the world, and are here, in our final term doing our internships. It felt amazing to finish classes at the end of July in Atlanta, but this chapter is bittersweet. Amazing because we are all working in very diverse places doing very different and interesting jobs (hopefully pursuing our next big dreams!), yet it is crazy to confront the reality that the time with this little, tight-knit, GPMBA “family” is coming to an end. I’ll call it growing pains since this is just a taste as we all prepare to graduate and re-enter the non-academic world of work on our own.

At any rate, as mentioned our class is literally spread around the world: We are everywhere from Los Angeles to Singapore to Australia to Cambodia to Nigeria to Germany to South America to New York (and more not listed!). I happen to be the “South America” representation. As the Global Partners intern delegate to Santiago, Chile, I am enjoying my work at an esteemed engineering consulting services firm. Primarily I am focusing my thesis project as a marketing consultant, looking at ways to improve the company’s marketing and business development department’s efficiency. It’s an adjustment being in an office all day again, but in addition to the work, I am enjoying getting to experience the life and culture here in Chile.

And since the next class of Global Partners is about to embark on their journey, I’ll dedicate the final part of this blog for their benefit:

Top 5 Things To Know Before Interning in Chile:

5. Obviously this is not a repeat of Rio – it’s now winter when you arrive to the Southern Hemisphere and it’s a lot colder and drier climate here in Chile! It was quite a shock to the system when I arrived in August from 95-degree Atlanta to SNOW in Santiago (albeit, that’s not normal here either). It was more of a shock to realize that heating is not a standard commodity in apartments here either.

4. Despite the stereotype of relaxed Latin American work ethic, Chileans work long hours. 45 hours per week (8:30am – 6:30pm Monday – Friday) is common. This again was an adjustment, not so much because I haven’t worked long hours before — both in school and in my previous job, long and busy weeks happened frequently — but because at 5pm when normally US jobs are finished, I still have 1.5 hours to go!

3. Chile is on the “Ring of Fire” and there are volcanoes (in the south, Volcán Puyehue erupted in August) and earthquakes are common. Being a Georgia native and having lived in Chicago, earthquakes are not a norm in my experience. Therefore, being awaken by a 5.9 “terromoto” was startling and scary even though nothing happened except my coworkers making jokes about the “temblor” (tremor).

2. Chile is a very stable and peaceful country. It has experienced consistent economic growth and is widely considered one of the best Latin American economies. There seem to be nearly endless entrepreneurial opportunities here and the government encourages them through programs like Start Up Chile. However, this does not stop petty crime – I have heard many stories from new friends about purses, wallets, jewelry, etc. being stolen, including a necklace off a woman’s neck! The reputation also masks the large wealth inequities that exist here, which have recently led to social unrest. I arrived during massive protests that have even turned violent, forcing me to mostly keep my distance from Centro (downtown). So, as in all big cities around the world, be aware and be safe!

1. Chilean is a whole different language than Castellano Spanish! Fortunately my work is bilingual, as is my Chilean roommate because there are MANY “Chilenismos” that you will have never heard before if it’s your first time here! Chileans often add “po” to the end of words as a filler (“Si-po”), say “Cachai?” (you understand?), drop S’s (and the end of words!), and love diminutives (little -ito and -ita everything!). The combination of these new words and interesting additions/subtractions from what I know combined with rapid-fire speech is enough to make me re-evaluate how well I actually know Spanish! Fortunately, Chilenos are very proud and kind people who want you to understand and learn so there are many language intercambio opportunities to meet new friends and practice!

And with that, I leave you until next time with a few photos of Santiago to enjoy. And final bit of advice: pack peanut butter!

China’s Bipolar Condition

After studying and subsequently experiencing China, our group was asked: Based on your experiences, how do you predict the future of China in business? Will China lead the world or fall by the wayside?

During the last two weeks, we experienced Chinese culture and gained a firsthand look at the reality faced by this growing society. After talking to representatives of different local and foreign companies located in Shanghai, Qingdao, and Beijing, we drew our own conclusions about the future of business in China and its ability to become a global superpower. We believe it is a growing economy whose destiny depends on whether it can address key social and economic issues or leverage its current strengths for continued success.

China could certainly falter in the future if circumstances align. From some of our company meetings, we gathered that the Chinese have a tendency in business to “stay inside the box” by maintaining traditional mindsets that won’t serve them to meet the challenges ahead.

• Social issues: By not confronting the present social issues, unrest could ignite. Censorship could cause backlash, and prevents learning from diverse viewpoints. The masses can only be silenced for so long before there is push back. For example, we learned and saw first-hand that the Chinese government flexes its muscles in a show of strength through media censorship. It blacks out CNN news clips that it believes are negatively portraying China despite the fact that viewership is limited to English-speakers, hotels, government and university viewers. Social media is heavily monitored and blocked, however many people still access Facebook using underground software. If that access were to be taken away now that people have had a taste of the entertainment and ability to self-express that Facebook offers, this censorship could add fuel to the flame of unrest.
• Economic issues: There are major wealth disparities in China, however so far China has maintained major, steady GDP growth. Yet these levels of GDP growth may not be sustainable over the long term.  If the growth slows while the Yuan appreciates and inflation continues to rise (a “perfect storm” for uprising), the huge population of the working class will be inordinately more impacted than the upper class. This “perfect storm” could negate the progress the working class has achieved thus far, or even leave them worse off. The population has very limited peaceful means of imposing change, so under the pressures of social and economic issues, a revolution could boil over.

China certainly has the ambition to become a major economic force, however it seems that changes have been short-sighted leading to inconsistent results. For example, the Chinese government took a large step by opening up journalistic regulations, like the ten-day rule, for the 2008 Beijing Olympics. Yet, when faced with the Jasmine Revolution coverage, rather than being consistent and maintaining the open policies, they reverted to the “in the box” old practices that increased negative attention. This stance of control was seen again over the weekend with the detention of the Shouwang church members who gathered for Easter.

Despite the potential downfall, China also has the opportunity to successfully become a world power. In addition to confronting the aforementioned issues, China has distinct advantages that lend to its growth.

• Consumerism: China has 1.3 billion people, and as these people have increasing disposable income, the domestic consumer market is a major opportunity and driver. In looking at a product-market framework, for many companies China is an attractive market where new products can be offered. China is transitioning its economy from an import/export to a consumer focus.  This shift will further China’s self-sustainability because then the complete market cycle (from producing to purchasing) will occur within China. This will keep profits within China, elevating the purchasing power of population and economy as a whole.
• Policy Globalization and Integration: During recent years, China has embraced many policies that align with the rest of the developed world. It has established anti-trust laws that are rooted in European policies. The rule of law increasingly is more important, as shown by the rise of more Western-style contracts. With the growth of more Chinese companies that have developed their own intellectual property, the value of protecting IP is more apparent and more supported by new laws and enforceable dispute resolutions for infringements.

Predicting the future of China as either a world leader or as falling by the wayside involves taking an extreme, polarized stance. We have discussed issues that could lead to either outcome. The reality is likely somewhere in between. Our group (Maria, Stacey and I) believes that in the long term, China will be successful, emerging as one of the world’s leaders. This, however, is a long-term goal that will require perseverance while China learns to think outside the box and confront the tough issues it faces.

Unexpected potential impacts of the 2008 financial crisis

Today is our last day in Beijing before our GPMBA class of 2011 departs China for Paris, France. We had two final company meetings with UPS and an incubator start-up, Yuanfen-Flow. Both were quite interesting, but hearing from the China Public Affairs office of UPS was most impactful for me.

Our discussion centered upon government relations and the efforts that UPS makes to synchronize policy and regulations to its business goals. Now this was not a new concept; our class met with UPS’s Public Affairs Office in Washington D.C. back in October 2010 to discuss this idea within the United States. However, as was pointed out in our conversation today, the methodologies between the US and Chinese offices are quite different for a number of reasons. Causes for disparity are largely intuitive: regime differences are motivated differently; cultural differences; UPS’s relative employment size and importance vary between China and US; and UPS’s domestic versus foreign company status makes an impact.

All of these facts and comparisons are very interesting, but what caused me to pause and really think was our speaker’s statement that the 2008 financial crisis spurred another turning point in UPS’s Chinese government relations. Our speaker commented that the China’s government began to lose belief in the strength of the very laissez-faire and market capitalism concepts that have opened the Chinese market, particularly during the past decade. This lost faith has led to much tougher Chinese regulations and an “environment of complacency,” particularly in regards to foreign companies because the government wants Chinese companies to prosper. UPS has reacted by disseminating plans into smaller steps which can be approved at local levels that may be more open to foreign companies than the central Chinese government.

The more closed attitude of the Chinese government as a result of the financial crisis is an interesting effect that is not one that I had previously considered. Particularly it can be analyzed in light of the international freedoms of the air. Bilateral agreements between countries regulate air traffic, including UPS freight planes. During the 1990s and early 2000s, there has been significant advancement in the aviation deregulation between the United States and China. However, a less open China means that advancements in securing additional air freedoms (called Open Skies Agreements) is unlikely. The 8^th Freedom was highlighted as very unlikely but one that would have a significantly positive impact on UPS. This right would enable UPS to fly cargo planes point-to-point domestically within China, thus allowing UPS to truly enter the China domestic delivery service business without violating its US pilots’ union agreements that currently prevent UPS from a joint venture with a Chinese airline. It is worth noting that the 8^th Air Freedom (called cabotage) is not in effect in any of the major countries of the world, so its passing between the US and China is unlikely. Yet because of the local approach taken on by major transport companies like UPS, less attention is being paid to lobbying central governments for these freedoms that could have positive economic impacts for both markets.

This view that the 2008 financial crisis could have impacted far more than just the apparent economies of the affected countries opens the door to reflect on the political, business, and regulatory aspects that may be altered for the foreseeable future.  It also offers yet another level of complexity to consider in the US-China relationship, with UPS’s aviation story being just one example.

Conclusions on pre-trip concerns

Before we started our GPMBA voyage to China, my group discussed our pre-conceived notions of China. One of our first posts offered our “Top Five” lists of both the most anticipated and most concerning experiences in China. After having been in China for about a week and a half, I can now report back regarding my actual experiences with our concerns.

Food – I have not gone hungry in China, not even a little bit. Personally, I’m not the most squeamish or picky eater, but I am not the biggest fan of Chinese food in the US so food was a concern. Much to my delight, many of the traditional Chinese dishes have been delicious. I love dumplings, wonton soup, noodles, fresh fish, and vegetables. That’s not to say I haven’t tried some foods that are more exotic to my Western tongue like starfish or shrimp with the shells still on, but fortunately I have not gone hungry at all. Plus, there are PLENTY of American restaurants around (Pizza Hut is a much improved experience here than at home!).

Language barrier – I cannot say that this hasn’t been an issue because it has been a challenge sometimes. Fortunately, many of the Chinese I have encountered can speak a little bit of English and pictures, written addresses and some role play / acting has worked sufficiently. The Chinese people have been quite welcoming, patient and helpful in my experience. So, in all likelihood, the language difference has been more an internal frustration with myself for not having more Mandarin knowledge before coming to China.

Travel wear and jet lag – It was a very long journey here to China via Paris with a 5 hour layover. That cannot be sugarcoated. Fortunately, I was able to stay up on day 1 through to the evening, thus adjusting to the time faster. The full days of company visits and sightseeing are tiresome, as are the domestic travel days, but overall I think the jet lag has been bearable. I am, however, looking forward to settling in one place for more than a few days. Fortunately, we will be leaving for Paris very soon and will be there for nearly two months.

 So, in summary, many of our pre-trip concerns were valid, but were erased or mitigated by my actual experiences.