A guest blog post from business veteran Jack Leblanc, whose entertaining book Business Republic of China is now available on Kindle, Nook and other e-readers!
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Once upon a time Mr. Mayo, a smart businessman who headed a three-generation-old European company producing deep-frozen French Fries and other iced delicacies, decided that the time was ripe to head for China.

So by the middle of the 1st decade of the 21st century his entrepreneurial spirit brought him to the “mysterious” Far East.
His findings were astonishing to say the least: He discovered that the largest multinational fast food restaurants had set up shop far ahead of him, that some of those chains had hundreds of outlets spread all over the country, that the young Chinese loved fries almost as much as rice. And that meant that his deep-frozen fries should certainly be in demand.
He temporarily hired a Mr. Yang, a thirty-something-year-old, as his consultant to further discover the potential of his fries in the Middle Kingdom. Quickly the wildest estimates hit the Excel sheet, far exceeding the conservative forecasts Mr. Mayo could have dreamed up, and it soon became fact that selling to China was a must. His company would quickly show a return to the family shareholders far surpassing the 3-5% growth they saw in their customary markets.
Unfortunately the lack of enough cold storage, and therefore the prohibitive cost of small shipments, “taxing” import procedures and messy logistics to move cold containers around the country, quickly made him realize that to reach the end users he had to build a production facility in China.

It was decided to build a brand-new factory at a cost of 2.5 million Euros. It would be headed by Mr. Yang, whom Mr. Mayo had come to trust like family. Shandong was chosen as the perfect location. This made sense because it looked like potato paradise: Different varieties were available within a 400km radius. Farmers were eager to sell and at very interesting prices. (more…)