...estimates that by 2020, China’s middle class will grow to about 700 million people (Fierman 14). As a result, China presents unique opportunities for American businesses of all sizes. However, even though China’s business environment might offer great prospects, the challenge for American entrepreneurs is adapting to China’s business culture. In order for one to successfully acclimate to China’s business culture, China’s social values, specific business etiquettes, and common mistakes made by Americans need to be examined. The first step in adapting to China’s business culture is understanding the social values that underlie Chinese social behavior. Chinese social behavior is reflected in 6 concepts: renqing, li, mianzi and lian, and guanxi and bao. According to Allan Chan, the associate dean of the School of Business at Hong Kong Baptist University, renqing can be interpreted as meaning emotions or the way of interpersonal interactions (Chan 48). No matter how renqing is interpreted, the essence of renqing is showing appropriate emotions in relationships. Traditional Chinese culture is illustrated by limiting outward expressions of emotions. In its place, the Chinese express emotions in indirect ways by using high context nonverbal communication. By expressing emotions indirectly, one can preserve the other party’s feelings in cases of negative news. In addition to showing the appropriate emotions, according to Chan,...
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...1. The current relationship between Canada and China Luo Zhaouhui, the Chinese Ambassador to Canada, interesting explains on The Globe and Mail (2015) that, “Developing China-Canada relations is like sailing against currents. You either advance or recede.” Diplomatic ties between China and Canada have been established for 45 years and counting. Strategic partnerships between the two countries have held strong for over 10 years (Zhaouhui, 2015). The strong ties between the two countries are reflected through current statistics. As of 2014, about 100,000 Chinese students attend educational institutions in Canada. Chinese is considered the third most spoken language in Canada with over 1.3 million Chinese-Canadian residents (“Bilateral Relations”, 2015). 2. The standard practices and business etiquette in China Labelling and stereotyping can be very detrimental in cross-cultural situations; special care must be taken to ensure the team avoids that habit. The strongest armour against generalizations would be to educate our VCC negotiating team about standard Chinese practices in business and the negotiation process. The Chinese business culture places significant value on building relationships and getting to know the team individually. Personal connections would lead to friendships and friendships would lead to open trust and harmony – values emphasized in Chinese businesses. As a team, we need to recognize that in order to be successful in negotiating we must first build an...
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...only is China the world’s main production market but also the world’s centre for consumption. It is crucial that western businesses and managers understand how to do business in China and the issues they may face in management practice in an international and cross-cultural context. Political and regulatory considerations for doing business in China, Anti-gifting regulations in China The giving of gifts is an essential part of Chinese culture (Yang 1988). Personal and corporate gifts accounted for approximately 25% of luxury goods sales in China in 2012. Bain et al (2013) This sale percentage is now at risk as the Chinese government attempts to combat both the act of corruption and a negative view among the population of the behaviour of politicians. As part of the anti-corruption campaign, in July 2012, the State Council passed regulations stating that government agencies are prohibited from purchasing luxury goods. As the new leadership in China pledged to increase efforts to curb corruption, it is generally expected that the anti-corruption drive will slowdown corporate gift-gifting, there by weakening the demand for luxury goods. Modes off entry, In entering the Chinese market the company must understand what entry...
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...Improving Communications: Hotel International and the Roaring Dragon Hotel Ima Student Sullivan University MGT 510 Executive Summary This proposal provides a roadmap toward improving communications between the Hotel International (HI), a global hotelier, and the management control of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China and a state owned enterprise (Grainger, 2008). Failure to recognize cultural norms and the relationship between employees, customers, and contractors will result in dramatic failure of modernization and an effective business plan (Grainger, 2008). Introduction: Management Control Takeover The management control takeover of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China had a direct impact on the hotel’s employees, its popularity among current customers, and generating profit. RDH is a state owned enterprise located in southwest China by Hotel International (HI), a global hotelier (Grainger, 2008). McNally (2011) observed, “Over the past thirty years China has witnessed a gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and international economic integration” (p. 1). Background: Deployment of Corporate Governance and Global Marketing The provincial government was concerned that the hotel would not meet their potential and needed modernization. The current general manager, Tian Wen,...
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...ever before. One example is today, when travelers from all over the world visit China, they find very little barriers in their visiting, and feel so at home in cities such as Beijing and Shanghai. This is because, in an essential sense, the global standards are already merged into Chinese economy, and implemented well in the most economically developed countries. One of the key cultural traits of China, which ties closely with the economic practices, is the prevalence of guanxi, or “social ties” – an informal Chinese practice of handling conflict and interaction with the state. This cultural characteristic came from the tradition of Chinese avoiding formal legal procedures in courts to settle conflict, by leaning towards informal mechanisms of dispute resolution such as personal relations, mediation through third parties, or ideally, avoidance of conflict by following local norms of behavior and managing personal relations (guanxi). Also, because Chinese culture has not esteemed formal legal practices, guanxi has greatly affected the behavior of foreign investors and undermines...
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...Improving Communications: Hotel International and the Roaring Dragon Hotel Ima Student Sullivan University MGT 510 Executive Summary This proposal provides a roadmap toward improving communications between the Hotel International (HI), a global hotelier, and the management control of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China and a state owned enterprise (Grainger, 2008). Failure to recognize cultural norms and the relationship between employees, customers, and contractors will result in dramatic failure of modernization and an effective business plan (Grainger, 2008). Introduction: Management Control Takeover The management control takeover of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China had a direct impact on the hotel’s employees, its popularity among current customers, and generating profit. RDH is a state owned enterprise located in southwest China by Hotel International (HI), a global hotelier (Grainger, 2008). McNally (2011) observed, “Over the past thirty years China has witnessed a gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and international economic integration” (p. 1). Background: Deployment of Corporate Governance and Global Marketing The provincial government was concerned that the hotel would not meet their potential and needed modernization. The current general manager, Tian Wen...
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...China Internship Reflection Scott Smith 8/29/2012 International Business The Other End of the Spectrum The Chinese Experience My trip to China was a wonderful experience. There were so many good times accompanied with a lot of learning. Some would think it’s tough for an American to survive in China without knowing the language. In all actuality, it’s not too difficult; Chinese people are very friendly as well as welcoming. Beyond the cityscapes, China has beautiful colorful landscapes much different in wildlife and appearance than those found in the United States. I made a lot of new friends and some great connections. Overall, it was an incredible journey in which each day was a new adventure. Most of the time I spent in China was occupied with hard work and learning the ropes. I saw how every component played a role in the operation of the company, Hartford Technologies. In my downtime, I went to the skatepark to skateboard and make friends. I met people from all over the world; people from France, India, England, Ukraine and Russia. It was quite the humbling experience. Chinese Culture Chinese Culture is much different from our American culture. To an extent, Chinese culture is very misrepresented in America. For instance, most Americans believe the Chinese diet consists of pork fried rice, egg rolls, orange chicken, General Tsao chicken and fortune cookies...
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...INTRODUCTION China’s emerging wine market presents an important industry segment for Australia’s wine industry to target. The growth in Chinese consumption of wine in sales volume is influenced by improved standards of living. The growth of consumption has increased the number of imported wines in the Chinese market, making China a lucrative market for Australian to enter. Both countries’ consumer behavior is important to understand as by exploring the way consumers think and the physical actions that result from these feelings, the crucial reasons behind how they spend their money can be established. This report examines the differences in consumer behavior of Chinese and Australia wine consumers. The purpose of the report is to strategically analyze the effects of consumer behavior theories, market segmenting, targeting, positioning and Maslow’s Hierarchy of Needs in order to provide recommendations for further opportunities for Australian exporters. PART 1: THEORIES 1. SEGMENTATION, TARGETING AND POSITIONING Market segmentation, targeting and positioning are part of key elements of marketing most consumer goods. Through consumer research, marketers of brands uncover specific market segments with distinct needs (Schiffman et al, 2011). Then the marketers develop products and devise strategies to price, promote and distribute them. Key issues relating to segmentation in order for a successful target. Need to be identifiable, sizeable, stable, Accessible...
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... a. Explain how luxury products such as the BMW automobile might fulfill needs even within the traditional collectivist value set of China. I believe by growing this economy will give Chinese citizens more opportunity and more purchasing power to one-day own a luxury vehicle. Also social status is something that can represents that you’re doing well. I also believe it can lead to a showing off culture. b. Explain other factors that might be driving the desire for luxury in China. Well we all want what we can’t have, I believe that's human nature, but in China I other factors could play a role such as advanced luxury shopping experiences. More options would be available theirs a perfect gift for everyone I believe that would also open up the doors to a more gift-giving culture in China, and higher exposure to luxury product offerings. Luxury and quality would be playing a major role in this industry and would also be part of the other factors that should be looked at especially if you look to grow in the years to come. (JEREMIAS CUADRA) Q2. Develop a sample advertisement for BMW in...
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...its employees to strict codes of conduct. The company places value on ensuring the professional integrity of its workforce and is dedicated to safety and environmental protection. Producing high quality, standardized chemical coatings worldwide, DynaCoat is the ideal corporate citizen. In contrast, CreaseFree, a Hong Kong OEM of wrinkle-free clothing, has values that are at odds with DynaCoat’s. The company’s mission is low cost leadership, by any means within the law. While DynaCoat strives to exceed social expectations, CreaseFree only does what it must to meet legal requirements. Like many other traditional Chinese businesses, CreaseFree disregards formal control systems and depends on guanxi familial and other personal connections to accomplish tasks. This means that excessive gift giving; favors, kickbacks, and bribes all fall within the range of regular and acceptable business activity at CreaseFree. The company has no concern for corporate stewardship. As AccuForm’s business activity progressed, CreaseFree’s culture became prominent. The majority of Kim’s employees have been transferred from CreaseFree or are locals from China, thus bringing their already instilled values and business culture with them. Lacking moral courage, Kim has allowed them to continue working in the manner that they choose. A large part of this problem stems from the fact that Kim’s performance goals are...
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...to get the benefits and giving advantage to people as in Segon and Booth (2011, 16) which states that in western country gift giving is considered as bribery Asia is considered as a friendly action. In this case, a manager of the Australia Mining Corporation company needs to make an ethical decision whether to purchase a luxury gift. Since received information that gift giving able to secure the contract between the Asian Company. The ethical decision making models are utilitarian, moral rights and justice. This essay will be discussing on whether the manager should purchase a gift while negotiating a cross culture business. Moral right is not suitable because moral is one behavioral value base on certain criteria or conduct that is acceptable by the society (Boganovic, Cingula and Ivanisevic 2014, 80). In this case the humanity right is not being considered in the decision making process. If using transposition consideration, the Australia mining sector manager becomes the receiver and received an expensive and luxurious gift. Surely, none of the receiver will reject it. Moreover, the contract benefits company and stakeholder. Both company are able to do culture exchange. In additional, company should consider profit instead of humanity rights. Profit is more important to the company. If the manager considers humanity rights is more important the company will not be improve. Manager will be too scare to take risk and being a conservative. Guanxi is a Chinese word that represents...
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...Importance of relationships Rather than allow a relationship to develop while a transaction proceeds, the Chinese will establish the relationship first and foremost and, if a trusting personal relationship is cultivated, business transactions may follow. This is in part because of the concept of gwanxi – perhaps best thought of as a network of relationships whereby you favor your friends and they favor you. This can work both ways and the Chinese will be careful not to become obligated to business partners until they have carefully researched the personalities involved. You will be well advised to spend time building your own network of contacts, but you should be aware of all the favors you have received and be prepared to respond in kind. One consequence of the need to establish a personal relationship is that Chinese will ask personal questions that would seem impertinent and/or irrelevant to most westerners. It is best to politely respond with the answers (your age, income or whatever) rather than take offence or try to inject humor into the situation. Another consequence is the Chinese attitude to contracts. It can be seen to demonstrate a lack of personal trust if a written contract is produced too early in a transaction. A negotiated contract may mean little more to a Chinese negotiator than a checklist of points or a sign of a developing relationship and it is common for clauses that appeared to be agreed to be re-opened. “Face” The concept of “face” is...
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...The Risks of Doing Business in China Despite recent measures to curb corruption, foreign investors doing business in China must remain vigilant. Tuesday, June 04, 2013 , By Jim Barratt and Jimmy Ko China's economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China's economy will grow by 8.2% this year. However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government's legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. With China's recent transition to new leadership complete, it has been interesting to observe the ruling party's heightened focus on tackling corruption. Under China's new president, Xi Jinping, it has conducted a visible anti-corruption drive and imposed austerity measures in an effort to curb the display of wealth by government officials and generate goodwill among the Chinese population. While critics say that the recent measures target only the most conspicuous displays of wealth by government officials, the anti-corruption drive has already netted dozens of officials. Moreover, some perceive that the recent election of Wang Qishan as the new head of China's anti-graft body, the Central Commission for Discipline Inspection (CCDI), signals that the financial sector could...
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...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 make sure no violation to the rules exists. Regarding business practices, dinner parties are common, but expensive gift giving is seldom used in a business setting. On the other hand, in China, building strong relationships and trust is a huge factor involved in their business practices. It is preferable for Companies and government agencies to conduct business with groups their associated with,...
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...Megan Coburn Professor Tabitha Kenlon ENGL1111 19 March 2013 Giving gifts to get what we want- Gifts with an Ulterior Motive For thousands of years communication has been construed ambiguously. Regardless of whether it’s what we are feeling or what we need, the fact remains that humans have a hard time conveying everything they want to say during conversation (with verbal speech) and, likewise perceiving it. With regard to these factors, I wish to examine the underlying motives behind the process of gift giving, throughout the centuries, in different contexts and across various cultures. Individuals offer gifts, symbolically, for many reasons and in varying circumstances. Gifts may be distributed ritually, or in such a way that they distinguish hierarchies. They may also be used as a sign of affection when wooing a partner and are frequently utilized in business relations. It is important to note that there exists a difference between gifts given to other people and gifts given to oneself. A gift giving behavior is defined as a “process of gift exchange that takes place between a giver and a recipient.” (Keng, Kau Ah, Wang, Quain, and Mohammed Abdur Razzaque, 214) In the opinion of Schall, “culture is a rule-based phenomenon,” in other words, to be considered actively apart of a culture one is required to observe and conform to all of the implied and tacit rules that society deems apropos. Circumstance or situations are an important aspect of these untold rules that...
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