...Case study on NES China – Business ethics 1.Problem Statement The case about a company NES which is a Germany-headquartered multinational company that builds heavy machinery, automotive systems, electrical drives and steel tubes and pipes It began business in China since 1889, with 20 representative offices, 6 equity joint ventures, and 3 wholly owned enterprises. Now The Company wants to set up a holding company to facilitate its manufacturing activities in China. The case brings about the conflict between Western and Chinese business practices and protocols resulting in ethical dilemma. 2.Central issues of the case (2x2 matrixes) | | Importance | | | High | Low | Urgency | High | Obtaining approval for the holding company within a month | Uphold strong ethical culture and good corporate image as a publicly traded company | | Low | Develop a special ethical code to recognize Chinese business culture | Career development of people responsible for the approval | 3.Case problems The core issue around this case is the major differences between Chinese and western ethical values. It is common, in most developed Western countries, for businesses and government officials to closely follow business rules and regulations that are straightforward and by the books. There is absolutely no room for working around any of them, without risking your reputation and ultimately your career. It is common for Western cultures to implement internal audits to...
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...How would you have handled the situation with Li? Tang should address the Intel Architecture Development Co., Ltd (IADL) issues of downward and upward miscommunication by first talking to Li’s direct supervisor, Cheng, about the Intel philosophy of "disagree and commit". The Intel strategy should be discussed and linked to Li's skill set and with future assignments. Specifically, recognition should be given to Li's Chinese culture competency skills. All similar organizational and national culture context should be assessed. Tang could then review the different options for the manual project after considering recommendations from Cheng. A pointed conversation between Cheng and Li about the project’s correlation to Intel Strategy should occur to ensure commitment and understanding. Ultimately, a decision by Tang can be made to either cancel ,modify, or reduce Li’a project to a more attainable goal. Guanxi is a Chinese value of how organizations and people build relationships. Li had earned a high level of Guanxi by working with external and internal customers on his project. Face is another Chinese cultural term that means image , social standing and respect. The abrupt end of the manual project was perceived by Li as losing face, being disgraced , embarrassed, and becoming a social outcast. Instead of canceling the project, Tang could prevent Li from being dishonored by considering a negotiation with Cheng and Li about the description of the project. Reducing the...
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...Introduction Real China is a modern Chinese restaurant designed to enter the British exotic restaurant market. Company executives decide to open the first restaurant in Gunwharf Quays Portsmouth and simultaneously open restaurants in major British cities. But as a restaurant offering authentic Chinese food, it does not have a prominent advantage because there are many strong restaurants in the foreign food market in Britain. According to Kantar Company (2018), Chinese food is not the most popular—Italian restaurants are the most popular. This means Real China cannot attract potential customers. To understand how to attract customers, we need to collect feedback from customers on our homepage. We also need to create a two-way communication channel...
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...Read Case 2, entitled "Google in China," and respond to the discussion questions below. 1. For Google in 2005, from a business perspective, what are the arguments for and against entering China? 2. From an ethical perspective, what are the arguments for and against entering China? 3. If Google decides to enter China, how can it do so while mitigating adverse ethical impacts? In answering this question, please formulate possible options and evaluate their strengths and weaknesses. 4. What do you think Google should do, and why? Subject Matter—6 POINTS • Key elements of the case study covered • All three questions are answered • Content is comprehensive/accurate/persuasive • Displays an understanding of relevant theory • Major points supported by specific details/examples • Research is adequate/timely • Writer has gone beyond textbook for resources Critical Thinking—6 POINTS • Writer compares/contrasts/integrates theory/subject matter with work environment/experience • At an appropriate level, the writer analyzes and synthesizes theory/practice to develop new ideas and ways of conceptualizing and performing Format—4 POINTS • Citations/reference page follow guidelines • Properly cites ideas/info from other sources • Paper is laid out effectively--uses, headings, questions and answers and/or other reader-friendly tools • Responses are neat/show attention to detail • Assignment meets the 1000-word minimum • Assignment is formatted correctly using...
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...NES Question 1 Indeed, the amount of money that Chen was told to give each of the government officials was not much, but the action itself would have some consequences. However, it is unquestionably right to look at these consequences in two ways, the rule of law and local culture. First, According to the Chinese law, giving gifts of any kind to the government officials with intent of taking advantage of their position and power to conduct illegal action is bribery. This action of giving money to government officials may therefore be regarded as bribery; as a result involved parties may be penalized or even end up in jail. The Stakeholders may also decide to withdraw investing in such a corrupt environment. Secondly, it is undeniably true that local culture plays a tremendous role in a local business environment, therefore we must also argue with regards to culture. As far as Chinese culture is concerned, the need of maintaining networks or relationships (locally known as “關係Guan Xi”) in business environment is tremendously important and it is deeply rooted in the Chinese people’s DNA and other Asian countries that are also influenced by the Teachings of Confucius. According to the teachings of Confucius, relationships or networks(關係), and Face (mian zi), were among other things that were highly emphasized and helped to build up the Chinese culture which can be evidenced by the findings of Geert Hofstede in his theory of culture dimension that most Asian culture with no exception...
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...1.0 Back ground of the study America and China are two major names in the business industry. Both of it have their own character and ways in handling the business. Understanding the cultural background of these two countries will help us understands the style of each countries in managing the leadership culture. Due to globalization, organizations face many changes. It is such as changes in behaviour and technology. Steffi Biester had said that “Value the differences but also discover the similarities and then learn from one another, start to understand each other and start to change perspectives.” Leaders need to change their style for a certain purpose. By investigating two different cultures, we can see the ways that the organizations adapt the culture in their organization. It is important for multinational companies (MNCs) to be knowledgeable and improve their working strategy to stay in the right side with the cultural changes. 2.0 Introduction to Leadership And Culture Leadership come from the word leader which means an individual who are the leaders in an organization. Leadership also is the process of influencing the members of the organization. It may involve goal setting and become the person who give information and guide the employees in achieving those goals. In the process of achieving goals, the leader must lead the employees to make sure they are in the right path in doing their task. A quote from John Maxwell, “Leader become great not because of their...
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...tudy of red bull An Incipient Analysis of Expansion in China Prepared for: Eric Ng Prepared by: Yin-Fei Ge 6 May 2010 Executive Summary This report forms for previous analyzing the Chinese market and recommend entry strategies for Red Bull. This report focuses on analyzing the economic, political and legal, and culture environment. By analyzing the three environments one by one, some outcomes have been found and entry strategies are recommended. Major outcomes are: a. China has perfect market for Red Bull expansion. b. China has a lot of methods for transport the products. c. China’s political system and legal system are different from international political and legal system. d. China has a unique culture background. In addition, entry strategies have been formed for aim at outcomes. The strategies are: a. more selling with low price. b. Reduce the cost of transport cost. c. Create good relationship with government. d. Expansion with study the host country’s culture. Recommendations have been made that, if implemented, should help Red Bull achieve on expansion to China. TABLE OF CONTENTS Item Executive summary 2 1. Introduction 4 2. Background 4 3. Market Analysis 4 1. Economic Environment ...
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...Walmart- China 1. Customers patronize Wal-Mart China stores because they have low prices which are a great asset to china’s consumers who are more cost sensitive than other countries. Although, China’s consumers like to go to store after store to find the cheapest price, and of course Wal-Mart contains those low prices. Wal-Mart also established through studies and research that China’s customers valued great customer satisfaction which in return they displayed their loyalty by coming back over and over. Therefore, making some consumers skeptical to shift to Wal-Mart. Sustainability means everything to customers in China because like mentioned before consumers are loyal to the companies in which they have previously interacted with. Consumers in China become return customers if you have to sustain the great service expected from the customers. China’s consumers are not to kind on change, but as long as you provide the best service possible over and over they will continue to comeback. 2. Wal-Mart also has to consider sustainability when deciding their vendors. In order for Wal-Mart to be as successful as they are, they have to have top of the line products from top of the line vendors. Therefore, reliability is a must. As mentioned in the case, there were complications between Wal-Mart and the vendors specifically when it came to the Return to Vendors Programs. There was no control over the time the vendors had to collect the products that were unusable or destroyed which was...
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...Google in China Case Study 1. From a business perspective, what are the arguments for and against entering the market for Internet search in China in 2005? There were many arguments for and against Google going into China like legal, cultural, and ethical challenges facing Google when the decision was made to provide services to China. When Google entered China, locations and hosted servers were maintained by Chinese employees in addition to strict censorship regulations governed by the Chinese government. Google was faced with managing employees and a business that followed different laws and cultures compared to their American counterparts. Arguments For | Argument Against | Rapidly growing internet population | Strict Government regulation | Source of revenue and talent | Cultures | One of the fastest growing economies | Breaking own “Code of ethics” | | Violating Ethical Standards | 2. From an ethical perspective, what are the arguments for and against entering the market for Internet search in China in 2005? From the ethical perspective Google has an obligation as a Multinational corporation toward human rights, corruption, and freedom of speech. Google’s values are to make the world’s information “universally accessible and useful” and to its informal corporate motto, “Don’t Be Evil”? Going into China the Chinese government as a communist government did not want information made readily available to the public for any content pertaining to certain...
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...Case Study On Google in China Table of Content Background 3 Introduction: 3 Summary of Environmental Audit 4 Evaluating Current Strategy 4 Current state of Industry- 4 Product Portfolio Analysis 5 Critical Strategic Direction 6 Discussion 6 Conclusion 6 Assessment of Current Strategy 6 Recommendation 7 New strategic Direction/Development and methods- 7 References/Bibliography 8 Appendix 9 Background: This case briefly discusses about search engine market in China, Google’s share in Chinese market, Government rules and regulations related to the internet search. The main issues discussed in this case study are: • Google’s launch in the China and how it made its presence felt over there as well as the key issues faced by the Google such as gaining the market share, although Google did a fair amount of research before entering China but still wasn’t able to beat the local competitor Baidu which is the biggest in terms of search engine in China and accounts for nearly 60% of the market share.(Appendix 4) • Chinese Government rules and regulations related to the censorship in China which was against the Google’s Mission of providing the information. • Cyber attack on Google China which mainly target the gmail accounts of the users who were Human Right activists which forced Google on considering its exit from China. • A brief...
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...Case Analysis– Levendary Café: The China Challenge Statement of the Problem Mia Foster, the new CEO of Levendary Café, found that there is a disintegrated strategy between the American HQ and the Chinese subsidiaries. Further more, the huge resistance of Chen to comply with the specific plans and reporting processes required by Foster has greatly increased the tension and frustration between them. Key Problems and Issues * The expansion to China is moving far from Levendary’s well-defined concepts of store design and menu. This might have a great impact on Levendary as a whole as the long established brand image of Levendary is not maintained in the Chinese market. * Misalignment between the objective of the company in the U.S. and Levendary Café China’s operation style * The U.S. market emphasizes on the customer experience – provides place to sit and eat * The China market has a fast food establishment – e.g. take out counters and use of cheap furniture or no furniture at all (Quick casual dining) * Chen has a high reluctance to conform with the company’s planning and reporting processes * Lack of communication between the U.S. headquarter and the China market Secondary Issues * Different financial reporting processes in China and the U.S (not U.S. GAAP) * Is Chen really the best candidate for the role he serves or should he be replaced? Root Cause Analysis Symptoms: Most Levendary Café stores in China have different designs...
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...Introduction This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges. Background L’Oreal’s background The French company L’Oreal is a giant in cosmetics market that founded in 1907 by Eugene Schueller. The earliest success for L’Oreal is because it got the first hair color formula and then expanded into the field of shampoo and soaps. From the very beginning, L’Oreal decided to export its product to other countries such as Holland, Italy and so on. It entered the US market at 1953. Schueller was died in 1957 and Francois Dalle replaces his post. Although the boss has been change but L’Oreal expanded into overseas markets continuity. In 2004, L’Oreal had 52,000 employees over the world and portfolio of 17 international brands. As shown in the L’Oreal group annual report, the largest market for L’Oreal is still Western...
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...The team of Google executives assigned to negotiate with Chinese government officials began to arrive at San Francisco International Airport two hours before their scheduled departure. The seasoned team had been briefed on Chinese culture throughout the past two weeks by a special consultant retained for the negotiations. They had also been provided with an executive summary of press coverage on China and China’s most recent policy announcements regarding the Internet. The flight across the Pacific would give the executives valuable time to prepare for the negotiations concerning the acquisition of a Chinese domain name for Google and to reflect on just how far the company had come. By the summer of 2005, Google had matured from a cutting-edge Silicon Valley start-up to emerge as one of the world’s Internet titans. In only eight years the brainchild of two Stanford University graduate students had transformed an industry and was generating impressive earnings from advertising and the licensing of its search engine technology. Google’s publicly traded stock had skyrocketed since it began trading a year before (Exhibit 1). The company was admired for its audacious goals (nothing short of organizing and providing access to “the world’s information”, its corporate principles (famously and succinctly encapsulated in three words: “Don’t be evil”, and its healthy balance sheet. By combining a Microsoft-like aggressiveness, an Apple-esque zest for innovation...
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...An Analysis of The Case Study of Google’s Move Out of China An Explanation of the Problem Google is an American multinational Internet Corporation that was founded by Sergey Brin and Larry Page. When Google entered the Chinese market, censorship frequently interrupted its service. China has always been a relatively closed society and the government has tried to keep control on what its citizens’ experience on the Internet and social media. Google could not accept the government’s censorship; the company believed that its right of freedom of speech was being violated and its motto, “Don’t be evil,” was being conflicted with. Moreover, Google was also concerned that the government was behind cyber attacks attempting to access the accounts of Chinese human rights activists. When the conflict between Google and the Chinese government became more severe, in 2010, Google announced that it had stopped censoring its search services, had left the mainland, and had moved its search engine services to Hong Kong. Since Google did this, there has been a heated discussion about Google’s decision. Gains by pulling out of China： Google insists on its principle of “Don’t be evil,” which is the informal corporate motto of their company. The company claims that, as part of their self-proclaimed core values, “Don’t be evil.” is a central pillar of their identity. Moreover, according to Ovide (2011),"Don't be evil," is a part of their Core Values: "Do the right thing: don't be evil. Honesty and...
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...CASE INSIGHT ANALYSIS I The Business Environment of China: Challenges of an Emerging Economic Superpower The most important issue in this case This case provides a brief history of China and explores China’s current status in the global business environment. Throughout the reform of political structure and the economic system, the development of China was impressive. However, the potential problems due to the reform also surfaced and became the inevitable challenges of the continuous development of China. The case focuses upon an analysis of the significant challenges faced by China in society and culture, markets, technology and institutions. First, challenges in society and culture. Although China was still a comparatively young country (with a median age of 30), China’s huge population determines some of the inevitable problems during the country development. China was one of the world’s most rapidly aging nations by consequence of the country’s “one child” policy. More elderly dependents than children also cause problems in health care and retirement. The poverty and income were not equal in society. People in China still face the problems of discrimination and corruption. Second, challenges in markets. In product and service markets, local companies were often not pushed to produce high-quality products that would be competitive in the global arena. In factor markets, the size of China’s workforce and the corresponding availability of low-cost workers meanwhile caused...
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