Case Analysis: DMG- Shanghai

GM598ON
Spring A

1. It is obvious why guanxi and guanxiwang are so important in China. The people are very focused on connections, and building relationships with people. When you have a culture that is that focused on that, it would be illogical not to. I was always brought up to never burn bridges and build good professional relationships, because you never know when you might need a favor. By building the relationships they did, they were able to film in the Forbidden City. That was all due to the fact that the company respected the Chinese culture and religious beliefs. That would have never happened, had they not been sensitive to those aspects. Building relationships is essential to operating a successful business. I know when I sold advertising I would have never had repeat clients had I not taken the time to build good respectful relationships with them. 2. If a company was to go in to China and try to obey all of the rules and regulations they would be eaten alive. There is no way they would be successful. It seems like the only real rule that has to be followed is guanxi. Rules and regulations can be bent when there is a great working relationship and respect from both parties. Obviously, the company is very attentive to that and takes it very seriously. If a company came in worried only about the rules and not the people they are interacting with, they would essentially be booted out of the country. 3. I would think that bribes could essentially become a major ethical issue with guanxiwang. If the relationship of “respect” starts out like that there would be tons of problems associated with it. Also, if the company was to take more than it was returning there would be an ethical issue there also. At the company I work for we are very specific in how we handle business in other countries. There cannot be even a hint of dishonesty from either party or the deal will be cut off. Also, if the relationships became too personal there would be massive ethical issues. People can confuse a business and a personal relationship very easily, and looked at wrong could have negative consequences for both companies. In the way of lawsuits, distrust, and government retaliation also. Contracts can be lost, employments can be terminated, and many other bad things.