China: How To Fix Nu Skin’s Mistake – Small Business Advice

There is actually a plethora of small business advice in this problem. Every start up, entrepreneur or politician will have at some point an issue requiring an amiable solution. Sometimes you’ll win. Sometimes you’ll lose. But ….. ignoring the situation is never the appropriate solution.

Peter Drucker said, “People who don’t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.”    Follow me: Facebook 

Herb Greenberg write, “.. what appears to be an investigative story in the People’s Daily, the Communist Party’s main mouthpiece, suggesting that Nu Skin’s China operations are a pyramid scheme. The piece is not on the paper’s English language site, but I’ve confirmed it’s legitimacy. Multi-level marketers are tightly regulated in China, where multi-level marketing as practiced in the U.S. is prohibited.”

Panos Mourdoukoutas writes in Forbes an alternative to quell the uproar. I agree with his strategy.

What would have been an alternative strategy?

In a piece we posted yesterday, we proposed that Nu Skin work with Chinese government authorities on two solutions:

First, change its business model to address the criticism. That, however, would be practically impossible, as it involves a change in the core of its operations. Hire Jim Woods to Speak

The second choice is to appease Chinese leaders by providing some sort of public remedy, like the building of a shrine dedicated to the early revolutionaries, as suggested for Starbucks SBUX -1.11%—which was the target of a negative state media campaign last fall by one of the commentators to a previous piece.

“What Starbucks needs to do to thwart those two fears you listed is: to give something back to China, as Mr. Schwarzman of Blackstone recently has done. My suggestion to Mr. Schultz is: build a shrine for those early revolutionaries and build it at Ruijin county/city of Jiangxi Province, which is the Red Capital of China (long march started there). Contact with me at Yahoo YHOO -2.18% if you need my help.” […]

Read full article Nu Skin’s Big Strategic Mistake – Forbes.

Ignite Action. Break down Barriers and Transform Thinking

Jim Woods is president of InnoThink Group and Leadership Matters.  He is a leader in workplace learning, productivity, performance, and leadership training solutions. For over 25 years, we have helped companies improve their performance, productivity, and bottom-line results. Contact us

See a partial list of Jim’s clients. Hire Jim Woods to Speak  | | Follow us: Twitter | Skype ID – jim.woods79 http://www.innothinkgroup.com

About

Jim Woods is president of The Jim Woods Group. A management consulting firm. Go here to see his work www.jimwoodsgroup.com. He advises and speaks to organizations large and small on how to increase top line growth in times of uncertainty and complexity. Some of his speaking and consulting clients include: U.S. Army, MITRE Corporation, Pitney Bowes, Whirlpool, and 3M. See more at his website www.jimwoodsgroup.com.

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