Entrepreneurial Business Planning - Term Paper Example

Entrepreneurial Business Planning Analysis of Dr Chau Chak Wing La Trobe University Author names Executive Summary Chau Chak Wing is the chairman of Kinggold Group, a conglomerate headquartered in Guangzhou which deals in real estate, health, finance, media, culture, and hospitality. The business covers Guangzhou, Beijing, Hong Kong, Sidney and Brisbane in Australia. He was born in Guangdong province and moved to Hong Kong in the 1970’s. Dr. Chau love charity. He has donated more than $2 million to fund the Liberal, national and labor parties in the past decades. From 2006-07 and 2007-08, he gave $980,000 to the Coalition and $402,000 to the labor party (Cugnetto, 2016). He has close links to the political class, and he is a close relationship to the former Prime Minister John Howard and other senior coalition officials. Table of Contents 1.1Brief Background of Dr. Chau Chak Wing 3 1.2Australia-China connections 4 1.3Love for charity 4 1.4Public criticism 5 2.1Business Interests 5 3.1Real estate entrepreneur 6 4.1Ability to develop business networks 6 5.1Dr Chau is friendly 6 5.2Dr Chau loves charity 6 5.3He is influential 7 6.1He is a risk taker 7 7.1 Desire to make profit 7 7.2Changing the society 8 8.1Humbleness 8 9.1Networking is important 8 10.1Reputation is important 9 12.1Global trade barriers 10 13.1Networking is of great importance to Dr. Chau 10 14.1Networking 10 15.1Ability to develop friends 11 16.1Connections are important 11 16.2Entrepreneurs should be risk takers 12 16.3Empowering the community 12 Appendix A: Dr Chau political donations 14 1 Introduction 1.1 Brief Background of Dr. Chau Chak Wing Chau Chak Wing is the chairman of Kinggold Group, a conglomerate headquartered in Guangzhou which deals in real estate, health, finance, media, culture, and hospitality. The business covers Guangzhou, Beijing, Hong Kong, Sidney and Brisbane in Australia. He was born in Guangdong province and moved to Hong Kong in the 1970’s (Cugnetto, 2016). He then migrated to Australia in the 1980’s and established himself in the Australian real estate market. He returned to his home town of Guangzhou in 1988 and founded the Kinggold Group in 1996. Moreover, Dr. Chau has extensive political and business connections in Australia and China that he uses to advance his interests. 1.2 Australia-China connections Dr. Chau has played a significant role in supporting current and prospective opportunities for Australian businesses in China and the creation of jobs and growth in both countries. He helps facilitate the exchange of ideas and channels for an informal discussion that has brought together senior Australian and Chinese government officials (Cugnetto, 2016). Dr. Chau made a lot of money early in his career due to his close ties with senior Communist party officials. 1.3 Love for charity Dr. Chau love charity. He has donated more than $2 million to fund the Liberal, national and labor parties in the past decades. From 2006-07 and 2007-08, he gave $980,000 to the Coalition and $402,000 to the labor party (Cugnetto, 2016). He has close links to the political class, and he is a close relationship to the former Prime Minister John Howard and other senior coalition officials. In 2004 and 2005, he funded trips to China for Kevin Rudd, Stephen Smith, Wayne Swan, and Tony Burke. 1.4 Public criticism Dr. Chau has come under several criticisms from the media for promoting Chinese interests at the expense of Australian interests. For example, his newspaper the Australian New Express Daily was said to have helped staged assistance for China during the strife-torn Olympic torch relay in 2008 (Garnaut, 2015). The newspaper helped import 1000 Chinese flags that were handed out to pro-Beijing Chinese students to help mobilize for the Canberra leg of the relay (Snow, 2017). The rushed import of the flags was regarded as part of a campaign to help paint Australia red as a response to pro-Tibet and anti-Beijing protests that had erupted against the torch’s progress through Britain, the US, and France. However, Dr. Chau office said that the move was influenced by the desire to give support to the Beijing Olympics. Dr. Chau donations to political parties were seen by some quarters as a move to influence the parties to make favorable policies for China. He was accused of being a conduit for Chinese Communist Party which risked jeopardizing Australia’s sovereignty. However, Chau dismissed the claims saying that he is not a member of the China’s Communist Party and that his actions were not influenced by the party (Cugnetto, 2016). 2. Why is this person considered an entrepreneur 2.1 Business Interests Dr. Chau is considered an entrepreneur due to his business investments in the real estate and media industry. He is the founder and chairman of Kinggold Group that operates as a real estate developer. It develops office buildings, commercial buildings, hotels, residential buildings, international trade centers and other buildings. Some of his other overseas companies include the HK Kingston Investment in Hong Kong and another Hong Kong entity, Chun Yip Trading. In 2004, Dr. Chau set up the Australian New Express Daily. 3. What type of entrepreneur is your chosen entrepreneur? 3.1 Real estate entrepreneur Dr. Chak is a real estate entrepreneur. Through his company Kinggold Group, he specializes in developing office buildings, commercial buildings, hotels, residential buildings, international trade centres and other buildings. 4. Major talents and shortcomings 4.1 Ability to develop business networks The major talent of Dr. Chau is his ability to develop the right business networks. The success of a businessperson in China correlates to his business network. Dr Chau has extensive networks in the business and political community in Australia and China. 5. How would you describe your entrepreneur’s temperament? 5.1 Dr Chau is friendly Chau is friendly. According to him, his friends feel secure with his friendship. He says that when he has a friend, he does not impose or create problems and never asks them for any request (Garnaut, 2015). Also, he does not mix friendship with business. He is a friend to nearly everyone of high power in Guangdong and chairs several business groups. In Australia, he was well known to the former NSW premiers Bob Carr and Morris Lemma. 5.2 Dr Chau loves charity The businessman has a heart of contributing towards noble causes. For example, he contributed $20 million towards the completion of a building at the University of Technology Sydney (Cugnetto, 2016). The building was named after him. Apart from that, he contributed $ 5 million scholarship program for Australian Chinese students. 5.3 He is influential Dr. Chau has managed to have several high ranking official friends from both Australia and China. He could offer connections to Australia business persons seeking to do business with China. Former Australian Prime Minister Howard credited Chau with playing a crucial role in securing a $25 billion LNG export deal to China (Garnaut, 2015). In China, he has helped many people make successful business transactions. The Chinese rely on social networks to facilitate business dealings and people like Dr. Chau with important connections is held in high esteem. 6. How would you describe the entrepreneurial orientation of the person you are studying? 6.1 He is a risk taker He has invested in ambitious real estate projects some of them futuristic. He also ventured into the media business in China through a joint venture. The state heavily controls the media industry in China, and few people dare venture into it. The Sydney Morning Herald (2009) reports that Guangzhou newspapers are a battleground between compelling journalism that attracts readers and advertisers and sides with the government line to avoid being shut down. 7. Motivation to pursue entrepreneurial opportunities 7.1 Desire to make profit Dr. Chau like most other entrepreneurs is motivated by the desire to make a profit. The other need driving Dr. Chau is providing quality housing services to people in urban areas (The Sydney Morning Herald, 2009). In other words, he is offering a solution to the perennial housing problems that most cities face. In Guangzhou alone, over 200,000 people reside in his properties. 7.2 Changing the society Dr. Chak is also in business to change society positively. He has used money generated from his businesses to improve education standards in Australia and has contributed significantly to other initiatives in the country (Snow, 2017). He will be remembered for his contributions to charity. 8. What surprised you most about your entrepreneur’s behavior? 8.1 Humbleness Despite his wealth, Dr. Chau is a humble man who accommodates everyone. Although he is a media investor, he is very shy of the same and rarely on appears on television and other media channel. Little is known about his business activities something that has been attributed to his cultural background (Garnaut, 2015). Most wealthy Chinese business persons choose to lead a private life as opposed to a public one. The other surprising behavior about Dr. Chau is his ability to develop business and political networks. 9. What was confirmed /contradicted about entrepreneurship? 9.1 Networking is important From this research, I have confirmed that networking is of great value to business people especially when it comes to global trade. Dr. Chau banks on his great network of friends to influence his business interests. Also, I have confirmed that entrepreneurs are risk takers. In the case of Dr. Chau, he has invested in Australia, China, and Hong Kong (Garnaut, 2015). I have approved that entrepreneurs positively influence the society. Not only do they create jobs that boost the economy but contribute both their experience and resources in initiatives that improve the community. 10. What new insights emerged? 10.1 Reputation is important I have learned that reputation is important for entrepreneurs. Entrepreneurs should do all their best to have a good image in the society. Although Dr. Chau has been the subject of corrupt investigations, none has been proved so far and remain only claims (The Sydney Morning Herald, 2009). Entrepreneurs should be guided by strong ethical conduct to avoid getting on the wrong side of the law. 11. How important is teamwork to your entrepreneur? Teamwork is crucial for the success of an organization. Organizations that embrace teamwork perform better than those that do not. Dr. Chau is a team player based on his ability to keep a vast active network of friends in both Australia and China (Garnaut, 2015). Teamwork allows organizations to harness the unique skills of individuals to achieve an objective. Dr. Chau would not have been successful if he did not value teamwork. 12. What hurdles did he/she overcome? 12.1 Global trade barriers Dr. Chau has overcome various hurdles. Foremost, he has circumvented global trade barriers that have made him have businesses in different countries. He has also managed to protect his name from corruption allegations that are a threat to his business and reputation. Rauch and Casella (2003) list one of the barriers including laws and regulations. Overcoming these barriers requires strategic planning. 13. Of what importance was networking to your entrepreneur? 13.1 Networking is of great importance to Dr. Chau He is well connected not only to the business community but also the political class in Australia and China. Dr. Chau values friendship and loves to treat his friends at his home. His behavior is greatly influenced by the Chinese Guanxi system of social networks and influential ties that facilitate business and other dealings (The Sydney Morning Herald, 2009). He has used his vast network not only to cut business transactions for himself but also influence trade between Australia and China. Dr. Chau has been able to have many friends due to his personality. He is warm and strikes friendship with every person that he meets. Townsend (2012) acknowledges that in life, individuals respond well to warm, positive and confident folk. 14. Which “tools of the trade” is he/she using? 14.1 Networking Dr. Chau relies on his vast network of friends to cut business deals. From his network, he can know of existing business deals that he can take advantage of. Particularly, his network of friends is of great advantage to him in his home country of China where business persons use their social ties to facilitate business and other dealings (Garnaut, 2015). The journey to his investments in real estate is linked to his connections to Chinese land officials who helped him acquire prime land that he later developed. Also, Dr. Chau has managed to improve his status and image in both Australia and China through his charity donations. He has contributed a lot of resources to improve learning in Australia and support other initiatives for the betterment of the society. 15. What factors support/hinder his/her entrepreneurial behaviour? 15.1 Ability to develop friends Dr. Chau most consistent behavior is the ability to develop the right friends in the right places. His vast networks of friends have helped him in one way or another with his business dealings. On the other hand, corruption investigations are the main stumbling block to Dr. Chau reputation. He was under the radar of FBI over an international bribery scandal (Garnaut, 2015). Dr. Chau together with others are said to have bribed a former president of the UN General Assembly John Ashe. However, Dr. Chau claims that he is innocent. 16. In what ways does this study inform your knowledge of entrepreneurship? 16.1 Connections are important Connections play a major role in determining the success of a business person. In China, deals are signed based on how a person is connected in the business community. Entrepreneurs rely on their networks to know of existing deals and advance their trade. Networking is important to business people as it enables them to acquire new business leads. Through networking, entrepreneurs can be exposed to new business trends such as the latest technology and identify best practices. Dr. Chau relied on his connections to learn of business opportunities such as available land in the Guangzhou that is ideal for real estate. 16.2 Entrepreneurs should be risk takers Dr. Chau success is attributed to expanding his businesses to new markets. From China, he expanded his business to Hong Kong and then to different cities of Australia. Only a risk taker can venture into new lands. 16.3 Empowering the community Through corporate social responsibility, businesses can contribute towards making their communities a better place to stay. Dr. Chau has made a significant contribution towards improving education in Australia by providing $25 million towards the building of a business school and giving out $5 million for Australia Chinese student’s scholarship (Garnaut, 2015). Business people that give back to the community have a better reputation compared to those who do not (Doda, 2015). It is important that business improve the lives of people in their immediate surroundings. 17. Appendices Appendix A: Dr Chau political donations Source: (Trigger, 2017) 18. Reference List Cugnetto, L. (2016). Gehry’s first Australian building: The Dr Chau Chak Wing Building | Open Journal. [online] Openjournal.com.au. Available at: http://openjournal.com.au/gehrys-first-australian-building-the-dr-chau-chak-wing-building/ [Accessed 15 Aug. 2017]. Doda, D. (2015). The Importance of Corporate Social Responsibility. Journal of Sociological Research, 6(1). Garnaut, J. (2015). The tycoon, the money and the politicians: How China-Australia relations really work. [online] The Sydney Morning Herald. Available at: http://www.smh.com.au/national/are-chau-chak-wings-circles-of-influence-in-australiachina-ties-built-on-hot-air-20151015-gkalg8.html [Accessed 15 Aug. 2017]. Snow, D. (2017). Tycoon denies crusade to 'dye Australia red'. [online] The Sydney Morning Herald. Available at: http://www.smh.com.au/national/tycoon-denies-crusade-to-dye-australia-red-20090807-eczc.html [Accessed 15 Aug. 2017]. Rauch, J. and Casella, A. (2003). Overcoming Informational Barriers to International Resource Allocation: Prices and Ties*. The Economic Journal, 113(484), pp.21-42. The Sydney Morning Herald. (2009). Behind the mysterious Dr Chau. [online] Available at: http://www.smh.com.au/national/behind-the-mysterious-dr-chau-20090703-d7si.html [Accessed 15 Aug. 2017]. Trigger, R. (2017). 'Questions' over Chinese company donation to WA Liberals. [online] ABC News. Available at: http://www.abc.net.au/news/2017-06-10/chinese-businessman-asio-warning-chau-chak-wing-wa-liberals/8607372 [Accessed 20 Aug. 2017]. Townsend, H. (2012). The Financial Times guide to business networking. London: Pearson UK. Read More