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NAVIGATING COMPLEXITY
Blue Ocean Advisors specializes in supporting companies to navigate the complexities of succeeding in China and throughout Asia. Our expertise is focused on three critical areas: geopolitical and regulatory risk, crisis management and response, and commercial and government affairs strategy.
Market opportunities for multinational companies in China are still numerous; however, the cultural, business and political context has changed significantly in recent years. MNCs can no longer use old strategies to succeed in this new environment where managing risk is critical to exploiting opportunities.
The firm was founded by Kent D. Kedl, based in Shanghai, who has over 40 years of living and working in the China and across Asia.
EXPERTISE
Geopolitical and Regulatory Risk
Even just a few years ago, most companies operating in China did not have to think about geopolitical risk - all they focused on was how to get the most out of a dynamic and growing market. However, rising geopolitical tensions between China and the rest of the world mean that MNC business leaders in China must be constantly attuned to the potential impact of geopolitical risks on their business operations: "What if my Chinese customer refuses to buy from me because I am a foreign company?" In response to these tensions, all countries - but particularly the US and China - have ramped up regulatory codes and enforcement. From new sanctions regimes to rapidly changing data security requirements, MNCs must have a sharp understanding of their geopolitical and regulatory risks in order to effectively do business in China.
Related Experience:
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Geopolitical risk assessments for multinational companies operating in China identifying commercial and regulatory risks, potential “worst-case” scenarios and triggers, and recommending risk mitigation measures.
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Briefings to global HQ executive committees and boards on geopolitical risks in the Greater China region, changes in China regulatory enforcement and potential Chinese response scenarios to global sanctions.
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Design and implement fit-for-purpose compliance standards and programs in China and across Asia focused on ethics, legal compliance and successful business operations
Crisis Management and Response
Running a successful business in China requires efficient and effective crisis managment - keeping an eye on the road while navigating around the numerous potholes in your way. However, most business leaders are not taught to manage crises; rather, they are told to "do your best and don't screw up." Headlines in the business press over the past 10 years have chronicled the many crises faced by MNCs in China - anti-bribery investigations in healthcare; food safety issues in quick service restaurants; and anti-monopoly allegations across many industrial sectors. Continuing commercial challenges and increasing geopolitical and regulatory risks guarantee that business leaders in China must be ready to manage a complex situation when it hits and prevent it from becoming a full-blown crisis ... or managing the crisis when it does happen.
Related experience:
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Crisis response management, supporting as "chief of staff" during a crisis to guide and organize the crisis team
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Advise MNCs facing regulatory investigations in China to complete an internal investigation and craft a response to regulatory authorities to resolve the situation and ensure business continuity
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Advise companies threatened by an employee they fired without taking the proper steps, assisting management to deal with a “coercive” negotiation and come to a good resolution
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Design and delivered crisis management training to China-based teams and HQ personnel drilling teams on principals of crisis response in both table-top and “live fire” situations
Commercial and Government Affairs Strategy
Too many MNCs in China are still using old methods of creating and executing strategies, identifying partners and government stakeholders first and then figuring out what to do with them (when asked how they met their future JV partner, a client CEO once said, "I met their President at a trade show and he spoke really good English"). Rather, companies should be thinking "strategy before structure" - building the best commercial and government affairs strategies that are fit-for-market and then - and only then - identifying the right partners and stakeholders to work with.
Related experience:
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Advise MNCs on China entry strategies and acquisitions, identifying potential equity partners, structuring and negotiating the deal. Key sectors include life sciences, education, high-tech manufacturing, consumer products and F&B
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Advise companies in divestment of China assets including identifying an appropriate buyer, deal structure and post-deal governance, and identification of risk scenarios and mitigations to minimized push-back from Chinese authorities.
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Perform due diligence on potential suppliers and partners, including commercial, regulatory and political diligence.
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Assist MNCs to assess their regulatory stakeholder map, identify critical gaps and plan communications strategies to engage with new stakeholders – in recent years, the critical gaps for MNCs have been primarily with regulatory enforcement authorities.
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