...| Cross-cultural Issues in International Business | Siemens Cross-cultural Issues in China | | | 12/8/2011 | | Table of Contents 1. Introduction ………………………………………………………………………p. 3 2. National culture …………………………………………………………………..p. 3 3.1. Influence of national culture on an organization……………………………..p. 3 3.2. The effect of cultural values on management ………………………………..p. 4 3. Key Dimensions to analyze culture ………………………………………………p. 9 4.3. Hofstede’s dimensions ……………………………………………………….p. 9 4.4. Applying Hofstede’s dimensions on German and Chinese cultures …………p. 12 4. The concept of guanxi …………………………………………………………….p. 14 5. Other effects on organizations in different nations ……………………………….p. 16 6. Solutions to Cross-cultural Issues in International Business ……………………...p.17 7. References …………………………………………………………………………p.20 8. Appendix 1. INTRODUCTION From entry-level workers to boardroom executives, everyone seems to be expanding their business internationally nowadays. (Steers, R., 2010). They all are searching for business opportunities in other nations beside theirs so as to extend their business due to their geographical reach. In addition, when it comes to terms with these chances, they have to deal with many problems, one of which is the national culture. (Leung et al., 2005). Moreover, there are a number of problems that an international business...
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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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...MSc Management Cross-cultural Management module Cross Cultural Study of China and America Name of Student Name of Instructor Dated: Table of Contents S. No. | Topic | Page No. | Cross Cultural Study of China and America | | 1- | Introduction | 3 | 2- | Chinese Culture | 3 | 3- | Leadership styles and skills of China | 4 | 4- | Motivating others | 4 | 5- | Trust Builder | 5 | 6- | Talent retention | 5 | 7- | High Performance team | 5 | 8- | Management Style of China | 5 | 9- | The Guanxi | 6 | 10- | Individualism and collectivism | 6 | 11 | America’s Culture | 6 | 12 | Leadership Styles in America | 7 | 13 | Directive leadership | 7 | 14 | Participative leadership | 7 | 15 | Empowering leadership | 8 | 16 | Charismatic leadership | 8 | 17 | Management Styles of America | 8 | 18 | Ethical issues in cross cultural of China and America | 8 | 19 | Compare and contrast between China and USA | 9 | 20 | Conclusion | 11 | 21 | References | 12 | Introduction: This paper consists of cross cultural study of two developed countries named USA and China. These countries are well developed and exist in the major countries of the world. Both have an entire different culture in reference of behavior, leadership styles and management. China is the part of eastern countries and USA is a western country, both have entirely different environment and too far from each other. There are many roles that are involved in any organization...
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...EGT1 Task 4 Rebecca Fertig 12/24/2012 Introduction Cross cultural marketing refers to the strategic process in which marketing is conducted among people whose culture differs from that of the marketer. The differences in culture occur in various aspects like social norms, values and language. The differences also include such aspects as the living styles and education of the people. This paper addresses the need for company A which is US based to understand cross cultural marketing in China. The paper clearly defines the different areas which the company must consider when launching into China. This results from the fact that cross-cultural marketing requires sensitivity on the marketer. Failure to understand the tactics leads to the eventual failure of the marketing. Understanding the culture of the Chinese people and incorporating it into the marketing mix of Company A will result to the success of the company. Major Cross-Cultural Issues That May Impact Company A’s Marketing Approach There are various issues that make the country of china and US tremendously different in their cultures. One is the social structure which is extremely hierarchical and formal in China. This means that people should know their place in the hierarchy and fix themselves accordingly (Dsouza, 2012). One is not supposed to cross the boundaries into other areas. This differs from the way it is in America and where the structure is informal and loose. This is based on the...
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...Review Key issues in cross-cultural business communication: Anthropological approaches to international business Tian Guang* and Dan Trotter Shantou University, Shantou City, Guangdong Province, Southern China. Accepted 8 March, 2012 Cultural factors have long been known to influence the communication and success potential of competition. Cultural awareness shapes how business firms behave in cross-culturally reflected international markets. It is broadly recognized that cultural factors act as invisible barriers in international business communications. Understanding cultural differences is one of the most significant skills for firms to develop in order to have a competitive advantage in international business. This paper probes some key elements of cross-cultural issues in international business communication and provides a framework for creating competitive advantage for firms engaged in international business. Culture affects many aspects of international business communication. It impacts free trade policies, localization and standardization strategy decisions, advertising, brand effectiveness, business relationships, international business management, international marketing, international negotiation, and consumer behavior. Seven themes are suggested as guidelines for further research: Cultural impacts of markets, international versus domestic business communication, standardization versus adaptation in cross-cultural communication; cross-cultural dimensions of business...
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...Cross- Cultural Communication Matrix Meria Bowen Comm/285 August 13, 2011 Mary-Loggin Davis |Cross Cultural Communication | |Country |Preferred communication style |Non-verbal communication practices |Business communication norms |Strategies to increase cross-cultural | | | | | |communication | | |Italy official language is Italian, |Silence is rare and usually signals that |Always shake business men hands when |Learn to speak other languages to communicate | | |address men and women as signor or |there is a problem (Cross, n.d.). |meeting and departing (Cross, n.d.). |better with people of different language. | | |signora (Krazt, 2008). |Gestures and body language can be | | | | |Italians touch when verbally speaking;|extensive, It is oft en not a good idea |Space and distance mean cold and |Try to over look misunderstandings don’t hold | | |greets and say goodbye with a kiss on |to imitate Italians, though...
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...Cross-Cultural Communication Matrix University of Phoenix Com/285 December 16, 2010 Cross-Cultural Communication Matrix Cross Cultural Communication Country Preferred communication style Non-verbal communication practices Business communication norms Strategies to increase cross-cultural communication Saudi Arabia South Africa China Saudi Arabia Arab’s communication style is more elaborate, as they make use of various phrases while communicating. Therefore, Arabs are said to be expressive. They are said to be extravagant in exaggerating. Arabs also rely on non direct communication. Silence is used as a non verbal communication practice and it shows thoughful observation. Gestures and facial expressions are important non verbal communication practices as well. Eye contact is also important to the Arab businessmen. If a person maintains eye contact, this shows his sincerity and truthfulness. Business should be in coherence to the culture of the country. It is important to make prior appointments for making business dealings. Thursday and Fridays are off in Saudi Arabia. Therefore, buiness communications should not be done on these days. Face to face interaction is highly favored. (Gorrill, 2007). It is important to understand the particular culture of a country. So, reading about the specific culture and getting information through books or internet will help in increasing the cross cultural communication. Introduction of training videos...
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...Jianchao Liu (2010) Barriers of Cross Cultural Communication in Multinational Firms --- A Case Study of Swedish Company and its Subsidiary in China Abstract In times of rapid growth, both in terms of economic development and globalization, an increasing number of firms extend their businesses abroad. A subsequent challenge of this development is the managerial implications of cross-cultural management. This study employs a qualitative approach in a single case study of Swedish company and its subsidiary in China. After reviewing the previous studies, the authors summarize the differences of management style, staff behaviors and communication system in different culture context and find the barriers of cross cultural communication in multinational firms. The findings of this study indicate that the barriers of communication come from the national culture’s influence on the work place and behaviors of people with different identity. Moreover, culture also influences people’s way of thinking and behaving and result in different understandings toward vision and purposes of firms. Key words: cross cultural, communication, multinational firms, management style, staff behavior Prelude It is 9:00 a.m. on Monday in Sweden. The Technical product manager of company X sent an email about the new design of the product to its subsidiary company in China. He would like to have a production ready model of the new design by Friday when he flies to China. An email came on Thursday saying...
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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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...2012 International Conference on Technology and Management Lecture Notes in Information Technology, Vol.21 The Cross-Cultural Management of Chinese Enterprises’ Cross-Border M&A--- A Process-Based Perspective Bo Xu1, Xi Jiang2, Haiyan Yan3 1 1900, Wenxiang Road, Songjiang District, 201620 Shanghai, China brianxubo@163.com 1900, Wenxiang Road, Songjiang District, 201620 Shanghai, China jiangxi-219@163.com 1900, Wenxiang Road, Songjiang District, 201620 Shanghai, China yanhelen@163.com 2 3 Keywords: cross-border M&A; cross-cultural management; M&A process Abstract. This paper aims to investigate Chinese enterprises’ cross-culture management issues from the perspective of three stages of before, during and after the cross-border merger and acquisition. It proposed an analytical framework of cross-culture management under which the major focus was on the cultural distance measure, the choices of negotiation/information disclosure, integration mode selecting, culture conflict/ integration and culture innovation in the process of Chinese enterprises’ cross-border M&A. 1. Introduction According to the “China's Foreign Direct Investment Statistical Bulletin 2010”, China's foreign direct investment, the amount of direct investment, in the form of M&A, reached $29.7 billion in the fields of mining, manufacturing, electricity production/supply, professional technical services and financial sector in 2010. From the report of Chinese enterprises overseas mergers and acquisitions...
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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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...this statement with reference to contemporary research on cross-cultural negotiation and use examples to illustrate your analysis Introduction: Former President and charismatic leader of the United States John F. Kennedy once stated that, “We cannot negotiate with people who say what's mine is mine and what's yours is negotiable” (Kennedy, 1961). This timeless quotation epitomizes and typifies in essence what can commonly be regarded as cooperative negotiation. Formally, the term negotiation is commonly defined as two or more parties or groups deliberating amongst each other endeavoring to achieve a decisive result, which is mutually beneficial for both entities. When considering the process of negotiation across contrasting geographic locations or countries, negotiators have to understand the repercussions which heterogeneous cultures have in the final outcome of a potential deliberation. Culture is defined as the ‘unwritten rules of society’ (Hofstede et al, 2010) and most typically refers to those characteristics or values, which are unconsciously embedded in a large group of citizens through the ongoing processes of tradition and various forms of education. Understanding the pertinence of cultural differences and the significance which they bare in terms of cross-cultural negotiation, is essential to reaching an eventual agreement which is mutually beneficial between parties. However, an over-emphasis on cultural discrepancies may also lead to negotiations becoming protracted...
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...Considerable research has already been done on the cross cultural differences in the workplace (eg. Hofstede 1980, Pudelko and Harzing, 2008). However organizations only began to take initiative to bridge this difference in the form of pre-departure training a few of decades ago. Naturally researchers began to study the actual effectiveness of pre-departure and cross cultural training from various perspectives, some of which will be discussed below. Tung (1987) was perhaps one of the earliest researchers to study the importance of pre-departure training. The paper begins by describing a typical situation of Mr. X who migrates to Japan from the US but is unable to perform due to cultural issues faced by his family. Although hypothetical, this example could be true for any individual who moves to another nation along with his family and has not been provided with adequate training. Tung conducted a survey among 80 US multinational firms and found that the top most reason for expatriate failure was “inability of the manager’s spouse to adjust to a different physical or cultural environment” (Tung, 1987). This alarming result clearly indicates that pre departure training is essential not only for the employee, but for his family as well. Lau (2007) wrote her thesis that focused specifically on the impact of pre-departure training for employees migrating to China. The main factors to consider during training for China are culture, guanxi and language (Lau, 2007). The author also...
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...Introduction to Cross-Cultural Psychology Paper Yekaterina Tarkovsky PSY/450 Diversity and Cultural Factors in Psychology Stephen Northam / Professor November 23, 2015 The author of this paper would like to share the results of the study performed on the effects of cognitive appraisals of communication competence in conflict interactions. This study involves both Chinese and Western cultures. The researchers were investigating how differently people from both of these cultures perceive competence, appropriateness, and effectiveness of another party’s communication during conflict. At first, there was a pilot study which had thirty employees in Singapore. They were examining appraisals of communication competence in recalled intercultural conflict incidents. The competence of others was judged by western expatriates. They were determining whether the style of communication itself was direct as well as engaged. This was deemed to be judgements of effectiveness. The competence on interactional skills as well as knowledge on culture was judged by host-nationals. This was deemed to be judgments of appropriateness. The quasi-experimental study followed the pilot study. In this study, two parties comprising of university students. One party had one hundred twenty eight Australian students and the other one had on hundred eight Chinese students. The results of this study had showed that students from Australia discriminated between four different types of conflict styles more...
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...How Cultural Issues Affect the Processes of Joint Ventures in China Since 2000 Nicolas Francisco Herrera Giraldo Abstract: This paper purpose is to identify which are the more remarkable cultural facts at the moment of doing joint ventures with china. Taking in consideration that this country has presented a representative economical growth and that many western and occidental countries have decided to execute strategically movements to improve their processes with tools as joint ventures. Different cultural issues that distant the normal develop and pace of activities between China and other different countries when doing international joint ventures were defined. This paper may be helpful for managers and companies whiling to start doing business with China Key Words: China, businesses, joint venture, cultural issues, processes 1. National cultural issues 1.1Power distance disparity among China and other countries. This dimension deals with the fact that all individuals in societies are not equal, it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. It has to do with the fact that the followers endorse a society’s inequality as much as by the leaders. Small power distances cultures believe in the importance of minimizing social or class inequalities...
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