...Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why? Intro: The Politic regime of a country is imposed to safeguard the interests of that country. However it can have the effect of limiting a country’s growth and development and can cause complications when attempting to do business within a country. China and India are two fast growing and very large countries with clear distinction in social and economic models as well as two very different politic regimes with their own unique characteristics. This essay will analyse the contrasting views into the different political regimes in India and China and the strength, opportunities and threats of conducting business with these two countries. Paragraph 1: Political regimes as defined by (Kitschelt, 1992) are “the rules and basic political resource allocations according to which actors exercise authority by imposing and enforcing collective decisions on a bounded constituency”. The People’s Republic of China (PRC) formally a communist regime with Marxist ideologies until the economic reform in 1978 which lead them to a more modern socialism regime. China and India are two countries that have two polarizing impressions when companies think of conducting business with them. China is seen as a powerhouse when it comes to businesses. China is known for their cheap importing and exporting cost, low labor costs. However, India has emerged as a major trading power...
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...Unit 6 Case Analysis Wal-Mart Stores: “Everyday Low Prices” in China GB520-14M Strategic Human Resource Management Introduction The following paper analyzes the Wal-Mart case study regarding the position of their stores in China. It also provides a thorough examination of the struggles faced by the organization to secure their position of their stores in China through an HRM perspective, as well as a set of recommendation. Wal-Mart’s strategies to retain and attract customers are based on a set of fundamental premises envisioned by its founder Sam Walton. These premises are: to provide excellent customer service to its clients, make every effort to attain excellence at all levels, and to always respect the individuals. To accomplish these goals Sam Walton established a rule for its organization, the 10 foot rule, in which every employee is expected to engage with every customer that they find within a 10 feet distance with the purposes of providing assistance with their purchases and provide the best possible customer service experience. The analysis of this case study attempts to point out and explain the challenges experience by Wal-Mart in China and to provide a series of possible recommendations for the organization to overcome such challenges. The goal is to provide them a series of strategies for the organization that will allow it to successfully compete in this market. Analysis of the Situation and Pending Decision Problem Wal-Mart’s founder strongly believed...
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...Department, Supervisor From: Team C, Research Department Subject: Cultural aspect of China Business Communication in China As requested “Team C” has researched the required information needed to successfully penetrate the market for temporary staffing service opportunities in China businesses per our conversation June 5, 2010. Although the current wide success of Kelly Services Management here in the United States to understand the diversity of cultures in every business and capitalize on it, the opportunity to have the same success in China would require a different operational approach. Potential growth in this new market would greatly increase our reputation here at Kelly Services Management as well as our revenue growth. During our research on how to successfully penetrate the Chinese businesses for staffing services the main focus of the research was to logically acknowledge and understand the cultural aspects of China’s business practices. The purpose for this research was to understand the challenges in working within the Chinese business culture. The following research covers high and low context communication style indicating what is acceptable to the Chinese people. This research covers the meanings associated with the Chinese people commonly used communication style in business practices. This research covers the aspects of the gender roles within the Chinese business culture and gives perspective to their employee structures. This report recognizes the...
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...Business Strategy Lois Griffin Leading in China Liberty University LDR 520 Dr. Barrett December 2, 2013 An Integration Strategy for Business in China Cross cultural differences is identified as the greatest challenge in doing business, ranking first in the world market when considering: “law, price competition, language, and delivery,” Boontanapibul (2010). An entrance strategy within China will be planned considering its cultural differences and how its difference in market might affect its potential employees. Also to be considered is how to prepare for these differences and if the best practice would be to hire locally or expatriate. As practices of management vary across countries the desire and ability to become and remain successful involve companies to always consider the differences and affects that come with each culture (Boontanapibul, 2010). Hiring Expats vs. China local talent When deciding how to enter the China market one must first decide its best practice for hiring. The options to be considered are hiring locally and expatriate. There could be issues in obtaining expat employees as the hardest issue for expatriate’s success in China is the time required to adjusting within its foreign country making hiring locally most feasible. Finances could be another reason why hiring locally would be in the greatest interest of the company. Selmer explains that the expense of the assignments for several expats could exceed the budgets as risk of failure...
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...Thomas Country Risk Analysis When entering any market, analyzing the business risks is an important process. Many sources of risk exist and responsible organization will examine every possible source in preparation for managing a variety of issues. These risk types include political, legal, and regulatory risk, exchange and repatriation of funds risk, competitive risk, taxation and double taxation risk, market risk, distribution and supply chain risk, physical and environmental risk, social and cultural risk, and cyber-risk or technological risk. Political, Legal, and Regulatory Risks Politically, China faces some stability issues. China has a Communist government. In many cases, this regime has led to stability that has helped the country reach the more recent levels of economic improvement, despite some notable discontent among its people (Cai & Li, 2009). However, since reaching a more prosperous economy China has been at odds with itself. Balancing its communistic central government with capitalistic economic centers has been unsuccessful. Additionally, the development of the nation has led to a large disparity between the classes with some rural regions looking as they did decades ago whereas urban centers rival New York and Tokyo in excess (AMBest Co Inc., 2011). This generates a lack of trust in smaller regional centers and towns that threatens to create instability in China (Ke & Zhang, 2003). Political, Legal, and Regulatory Risks Management Companies...
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...similar views for countries that conduct business together? Through globalization growth, multiple ethical issues are receiving exposure accord to various management teams. If business ethics is a dilemma within the country then consider the issues that occur due to a foreign language, diversity in cultures, and the number of people involved raises to a global scale. In this paper, I will identify the ethical perspectives of two different countries, China and Australia. China has been at the head of concern about products, enterprises, and business ethics. The article examines the business ethics of China. China is now the manufacturer of over fifty percent of products in the world. While that would seem like a positive thing, the world has been faced with countless times where “Made in China” products have been considered defective. The beginning and expansion of business ethics in China can be separated into two different periods in relation to China becoming a member of the World Trade Organization (WTO). Even though China’s business ethics had expanded from not really being anything, to becoming a discipline, the topic still is faced with many challenges. Despite those challenges, China must develop and build up their business ethics to meet satisfactory standards. Right now, as mentioned above, China is running into problems with the safety, durability, and overall quality of their products. However, these are not the only issues China is facing. There are ethical issues...
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...International Business 305 May 01, 2011 The Creation of Globe Diesel Inc Globe Diesel is a Multinational Enterprise that is known for its innovative production of heavy duty construction equipment. Established in 1985 Global Diesel gained its recognition through the production of high quality construction equipment, super sized diesel engines, and other construction related services. Currently based in the United States, Globe Diesel has provided equipment for construction contractors throughout the west coast area and overseas. Their tangibles include financial, physical and technological resources that include an inventory of raw materials, steel, rubber, hydraulics and engine components. In addition, the well established company over the years has acquired human, innovative, and reputational resources which give them a competitive advantage. Consideration this, Globe Diesel has undertaken the activities in mass production of super sized construction machines such as dump trucks, excavators, cement trucks, and earth movers. Although Globe Diesel operates ten manufactures located throughout the United States, the challenging task of managing multiple activities in the production of construction machinery could prove to be troublesome, not to mention that machinery of this size and magnitude are costly to produce. These factors were influential in Globe Diesel’s decision to outsource the activity of steel production through foreign direct investments with China. This foreign...
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...Making Friends in China SGT Robert, Wade H. SFC Franklin, Jeremy ALC 728-12 15 September 2012 Making Friends in China I. Public Life Displays of affection Greetings Dining In a person’s home In a restaurant Business Bargaining Saving Face Gifting Meanings Taboos SGT Robert, Wade H. SFC Franklin, Jeremy ALC 728-12 15 September 2012 Making Friends in China As with any culture to be successful in China socially, one needs to understand the manners and etiquettes that the culture follows. Many cultures have changed greatly over the centuries, but China’s remains very similar to its roots around the family and authoritarian. Unlike western cultures, much of the Chinese etiquette continues to be very rigid. Understanding and putting into practice the manners and etiquettes of Chinese culture will help a person to create new friendships, rather than enemies, and be accepted by more people within the country. These manners and etiquettes cover behavior in public, dining, conducting business, and even gift giving. In public Chinese people are very formal in their behaviors. Public displays of affection such as kissing, hugging, making eye contact, or hand holding are strongly discouraged; however, hand holding amongst friends of the same sex commonly occurs. Personal space is given very little concern within China, especially during national celebrations when most people go out, and the streets become very crowded from the largest cities to...
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...Business Strategy Casey Hilton Leading a Business in China Liberty University LDR 520 Dr. Adkins December 6, 2012 An Integration Strategy for Business in China Cross cultural differences is identified as the greatest challenge in doing business, ranking first in the world market when considering: “law, price competition, language, and delivery,” Boontanapibul (2010). An entrance strategy within China will be planned considering its cultural differences and how its difference in market might affect its potential employees. Also to be considered is how to prepare for these differences and if the best practice would be to hire locally or expatriate. As practices of management vary across countries the desire and ability to become and remain successful involve companies to always consider the differences and affects that come with each culture (Boontanapibul, 2010). Hiring Expats vs. China local talent When deciding how to enter the China market one must first decide its best practice for hiring. The options to be considered are hiring locally and expatriate. There could be issues in obtaining expat employees as the hardest issue for expatriate’s success in China is the time required to adjusting within its foreign country making hiring locally most feasible. Finances could be another reason why hiring locally would be in the greatest interest of the company. Selmer explains that the expense of the assignments for several expats could exceed the budgets as risk...
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...Fall 12 Case Report: NES in China – Business Ethics 08 Fall Kate Wong Managing Across Cultures Professor Zhang October 12, 2012 The Business Dilemma NES is a Germany-headquartered multinational company that builds heavy machinery, automotive systems, electrical drives and steel tubes and pipes. The company has a very active presence in China. It began business in China since 1889, with 20 representative offices, 6 equity joint ventures, and 3 wholly owned enterprises. As a representative office, NES faced many legal and business restrictions in China by the Chinese government. For instance, NES could only deal with all human resources related issues through a designated labor service agency. In addition, the office could only deal with administrative activities. In 1997, NES would like to establish a holding company with its own business license. If approved by the Chinese government, it could engage in direct business activities, co-ordinate most business functions, and unite all NES profiles in China. However, the approval was still outstanding despite multiple revisions. The Chinese officials were skeptical about approving holding companies as a form of foreign investment, because holding company was still a relatively new business concept in China. Although NES’ application was “complete and perfect”, the Central Department continued to delay the approval. The company headquarters now pressured the representative office to obtain approval within a month...
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...targets middle-class women and its target customers in China consist of university-educated professional women in the emerging middle class whose annual earnings are increasing substantially. This shows that Coach wants to position itself as a pretty good luxury brand by targeting and wanting those types of customers to purchase its products. By conducting various research (spending $5 million on research and conducting various interviews with more than 10,000 consumers), Coach was able to identify new segment for the Coach line. For example, after conducting the research, Coach found out women want bags made out of feature materials other than leather. Consequently, Coach started to develop products that are made out of thinner and softer material of products than its existing Coach’s offerings. 2. In light of the current global economic downturn, will Lew Frankfort’s strategy for expanding in China need to be revised. Frankfort believes that China will be a bigger market than Japan for Coach one day and he stated, “If we are able to replicate what we did in Japan, the business will double in the next four or five years.” However, he needs to understand that Chinese consumers are different from Japanese consumers. Consequently, Frankfort needs to treat Chinese consumers differently from Japanese consumers and different products and marketing strategies need to be implemented. Also because Coach’s primary target in China is university-educated...
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...Business Communication Issues The global marketplace creates many opportunities for business development, but ineffective communication that comes along, both internal and external, can harm employees, customers, and stockholders. Therefore, when conducting business globally, it is important to understand the barriers to effective communication and know how to overcome them. Based on different objectives, we can identify these business communication issues from three dimensions. In the case of multinational corporations, the first barrier exists in the multi-level communication between headquarters and the overseas branch. With limits or no authorization in making big decisions, the branch has to report to headquarters and make requests for approvals before implementations. However, the information has to be passed through many more layers than in a local business during the procedure, which inevitably affects the efficiency of communication. Amazon, whose market value surpassed the U.S. nation's largest retailer Walmart in July 2015, has never performed as shiningly in China as it does in the U.S. Left behind by Taobao and JD.com, the leading businesses in China’s C2C and B2C area, respectively, Amazon’s market share kept slipping in recent years. Steve Frazier, Amazon’s ex-CEO in China, attributed the reasons to the very limited decision-making power that the China management team has, and the redundant layers of hierarchy that result in ineffective communications with the...
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...addresses your skills and knowledge in applying a global perspective in business, critical thinking, and communication. These are College-wide competencies adopted by the faculty for all majors in the College of Business. Please provide the following information at the top of your answer submission: First & Last Name, Panther ID, MAJOR, and Professor’s name. You are encouraged to do your best in this assessment. You do not need to perform web research in answering this question; your academic training at the College of Business Administration should have provided a good foundation and prepared you to provide an excellent answer. Use your time wisely while making sure you display excellent Global Thinking, Critical Thinking and Written Communication skills. Your response will be diligently checked for academic honesty and integrity, so if you feel obliged to research the answers you must appropriately cite your sources. Please read the following question carefully. You may want to construct a brief outline of your answer on scratch paper before your begin writing in order to better organize your thoughts. You can type your responses directly on the attached document, save it and submit into the Turnitin.com Dropbox that can be found under the assignments tab in your Blackboard course. Your response will be evaluated based on three (3) criteria: • Your ability to apply a global perspective to a business problem, • Your written communication skills, and •...
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...issues proceeding into any legal binding business contracts involving international businesses. When proceeding into international contract agreements it is important to complete the proper research. Most countries have different laws and regulations that all businesses must follow when business is conducted in that country. Before any problems arise, it will be important to research laws such as copyright laws, taxation laws, patent protection laws, and employment laws. Companies that are involved in business with contracts in another country must have some type of legal implantation (Melvin, 2011). Violated contracts must be enforced to resolve any problems. Outlining possible disagreements in advance will help to avoid future conflicts for all parties involved. If business is being conducting in The United States, The United States has the power to stop all the businesses transactions if the lawsuit was filed on The United States by that business (Melvin, 2011). When arranging foreign business, all laws and regulations must be followed and respected, if I am doing business in China I must follow the laws and regulation of China because The United States business laws may not be valued. Legally binding contracts are only honored in the countries where they are made for. The CEO from CadMex expressed the value of several important options as well as different concerns. Sublicensing agreements take effect when a business has too many agreements and dose not incorporate...
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...BUS383 Managing Global Business Essay 1 Executive Summary: Using Lenovo as an international business, discuss the impact & role of culture in its business activities in different economies such as the United States & China in terms of political, economic, social & ethical factors. 2 Table of Contents Executive Summary:..............................................................................................................................2 Introduction...........................................................................................................................................4 Conducting Business Internationally..................................................................................................5 Impact & Role of Culture...................................................................................................................7 Difference between Western & Eastern cultures...............................................................................8 Lenovo in China / Eastern Culture....................................................................................................10 Lenovo in USA / Western Culture....................................................................................................12 Current Affairs.................................................................................................................................13 Conclusion:............................................
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