History
THE BEJING AXIS - A Brief History
Conception: Original concept for TBA ‘name and logo’ scribbled on a napkin in a coffee shop in Haidian district, Beijing, in 2002 by founder, Kobus van der Wath. Photo by Matt Pieterse, co-founder, later to become CE of TBA’s investment advisory unit.
Since its establishment in 2002, THE BEIJING AXIS (TBA) has operated as a ‘cross-border business bridge.’ On the most practical level, TBA has fulfilled this objective as facilitator and expediter of the flow of business across borders, between cultures, and in different languages. Yet operating from its base in Beijing and working with its office locations around the world, during a crucial decade that witnessed historic events of China’s rise in the world as well as financial crises of immense magnitude, TBA has also been a cog in the much greater superstructure of China’s complex integration with the rest of the world. As a firm with its proficiency thus straddling China and the world outside it, TBA has always been defined by this sense of multicultural fusion and cross-cultural integration. In celebration of 8 years of cross-border China business solutions, this section briefly reviews the history of THE BEIJING AXIS.
‘Only a vague idea for a startup’
It will go down in history that THE BEIJING AXIS was conceived in a coffee shop in Beijing in 2002, and its first image—a crude rendition of a logo—was quite literally drawn on a napkin (see the image above, as it was recorded for posterity). Yet irrespective of this humble beginning, the hand that drew the logo was that of TBA’s founder, Kobus van der Wath. By 2002, Kobus had enjoyed a successful global banking and management consulting career that had included positions in Africa, Europe and Asia with the SA Reserve Bank, Standard Bank, Standard Chartered Bank and the Boston Consulting Group (BCG). In 2002, after eight years in Asia, Kobus left corporate life, admittedly with ‘only a vague idea for a startup,’ and permanently based himself in Beijing, writing the TBA business plan and studying Chinese. As it transpired, however, finishing the business plan (or the Chinese!) was superseded by TBA’s first sourcing transaction: sourcing bicycles from China to Zimbabwe, no less. By this time Kobus had met Cheryl Tang, a recent MBA graduate who had just returned to China from the UK. She was destined to become TBA’s General Manager for China.
First embodiment: The original logo of TBA, adopted in 2003.
Foundations
The business plan, it transpired, was a detailed framework of how THE BEIJING AXIS would seize opportunities in the China-Africa cross-border market, and it outlined different stages of growth for the coming years. The SARS epidemic of 2002-2003 was an early challenge for the fledgling company, yet in 2003 THE BEIJING AXS continued with sourcing work and also started to do some basic South Africa-China management consulting work. Kobus and Cheryl were joined by a small team of key staff members, and the first website, brochures and key processes were developed at this time.
Establishing these key processes and core values were fundamental components of the foundational period of TBA, and their importance to the way TBA operates has only increased over time. From the outset, the strong personality and drive of Kobus van der Wath instilled a culture of professionalism and accountability in TBA and its employees. The company’s official mission statement includes the words, ‘To learn and excel in a manner that inspires others.’ This drive to excel defined the operational procedures put in place at the founding of the company, yet the business solutions that TBA provides are fundamentally aimed at being practical, emphasising ’actions and transactions’.
Momentum
With strong foundations in place, TBA’s sourcing and strategy work started gaining momentum in 2004. The company’s strategy division was now solidified as TBA China Strategy Group, and the sourcing division became TBA China Sourcing Unit, while TBA China Capital Advisors (the investment advisory business) was first conceptualised at this point. The TBA brand now started gaining recognition among large Chinese and international multinational corporations, a development no doubt much augmented by Kobus at this time being commissioned by China’s Ministry of Foreign Affairs to write a book on doing business in China. The outcome was ‘Doing Business in China — the System and the Strategies’, the first book ever written on doing business in China by a person from Africa. It was at this time that the company was first approached by a serious direct investor — a venture capital firm — interested in buying a strategic stake. However, believing that ‘only we really understood our strategy and business at the time’, the offer was politely rejected despite its attractiveness. Remaining independent, it was believed, would ultimately yield better results.
What now became evident was the unique nature of TBA’s mix of strategic business units (SBU’s) as well as the novelty of the China cross-border space. As the company’s client list and experience curve expanded, TBA was able to better define and develop its transaction focus, a key catalyst for future growth. The nominal value of sourcing transactions increased significantly, and TBA at this time started to carry out some investment advisory assignments. With a clear focus on its priorities, TBA also began to appreciate the value of flexibility to be able to adjust to the opportunity landscape. As a small yet agile firm, TBA’s strength has always relied on these twin abilities of persistence and flexibility.
Sleek curves: New logo adopted by THE BEIJING AXIS in 2006.
Stature
The period from 2006 was one of increased complexity for TBA: more complex client assignments across the 3 SBU’s, managerial challenges, and the challenges of global expansion. TBA was now restructured into three distinct business units, with a new layer of solid management, and clear frameworks for best practice and knowledge management. Attracting and retaining the right people and skills became the top priority. Having truly left its startup stage behind it—replacing the old clunky angular logo with a sleek, rounded one—TBA became a truly global company. In 2007 TBA expanded into Russia, followed by Australia in 2008, and currently Latin America. Yet TBA was also developing significant numbers of new Chinese clients. TBA China Capital Advisors, for example, attracted engagements from five of China’s leading 20 mining groups.
This stage of TBA’s history, however, coincided with the global financial crisis. Looking back at TBA’s experience through the crisis, one could say that it amounted to a coming of age. As the crisis severely impacted virtually all of TBA’s clients, a more strategic and calculated client relationship management approach, sensitivity to the global environment and overall sound financial management were imperative. Successfully recalibrating these areas, TBA emerged stronger and more confident than ever. While the crisis was proof that TBA’s business model could withstand intense global turmoil, it also highlighted the latent opportunities for TBA in harnessing the synergies between its three business units. A global focus by companies on cost management benefited TBA China Sourcing Unit; Chinese companies ‘going global’ presented new opportunities for TBA China Capital Advisors; and a renewed need for strategic intelligence post-crisis (by Chinese and other multinational corporations) underpinned TBA China Strategy Unit. The mix in the portfolio of SBUs worked very well.
A new era: Bateman Beijing Axis logo, adopted at the founding of the joint venture in 2009.
Managing growth
Moving forward, TBA will continue to be focused, but it will maintain a flexible approach to strategy as it determines its priorities and chosen markets. Also, each of the 3 SBUs are moving to the next level and managing this growth will be key. For example, TBA China Sourcing Unit has entered a new era with its joint venture, Bateman Beijing Axis (BBA), with Bateman Engineering N.V. BBA is a China-focused global procurement house. For its part, TBA China Strategy Group is seeing more rapid growth than ever as Chinese corporates actively demand strategy formulation and implementation support as they go global and as other multinational corporations seek advice on how to deal with China Inc.’s rise. In a similar fashion, China’s global capital agenda is expanding the opportunity for TBA China Capital Advisors.