Subjects

When you say something new you often make an assertion. That is, you state that something is true. This is often followed up by some evidence to substantiate your assertion. Finally, an evaluation or commentary on this evidence sometimes follows. This is a fairly typical pattern as is shown in the following example:
assertions are marked in blue, evidence in red and evaluation in green.

Chinese Business Practice: The case of Wang Laboratories

Wang Laboratories of Lowell, Massachusetts began as a small family business. A maker of computers, Wang grew rapidly and had revenues of US$2.28 billion by 1984, and at one time employed 24,800 people in the Boston area. All seemed to go well until An Wang got ready to retire in the mid-80’s.

Wang Laboratories’subsequent fall was dramatic even by the standards of the unpredictable computer industry. The company posted its first loss the year after Fred Wang took over the business. 90% of its market capitalization had disappeared within 4 years, and in 1992 it filed for bankruptcy. The elder Wang was finally forced to admit that his son couldn’t handle the job and had to fire him.

The story of Wang Laboratories, although far removed from China itself, shows us a fundamental truth about Chinese business; despite the modern facade of Chinese business around the world, it continues to be based on family ties. The Chinese family provides the social capital to start up the business, but it also imposes a limitation, which prevents them evolving into lasting, large scale institutions.