...Guanxi 1. Introducción En este trabajo vamos a introducir y analizar que importancia tiene Guanxi en la sociedad china y como las tradiciones y la cultura china afectan el concepto del Guanxi. República Popular China es un país situado en un gran parte de Asia oriental y más poblado del mundo. Además, la economía de este gigante asiático es una de las más desarolladas a escala mundial. En los últimos años China (RPC) se ha convertido en un país muy prometedor con muchas oportunidades en el mundo de los negocios. Cuando quiere usted tener éxito en el mercado chino, en primer lugar tiene que llegar a saber más sobre el concepto como se negocia en China. Los negociadores chinos ponen énfasis en las relaciones interpersonales, la confianza y el respeto. Sin embargo, para las empresas internacionales no es siempre fácil hacer negocios o entrar en los mercados chinos también a causa de desconocimiento de Guanxi. Guanxi es un término chino y consiste en dos palabras: guan y xi. El primer término significa puerta o salida y el otro significa atar. En general guanxi significa una conexión y hace referencia a las relaciones sociales basadas en el interés y beneficio mutuo (Bian, 1994). También se puede decir que se trata de una palabra que hace referencia a una red de las obligaciones y los favores entre las partes distintas en un ambiente de sinceridad y afectuosidad. La cultura china se distingue de la cultura de Europa occidental en muchos aspectos, incluyendo cómo se hacen...
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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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...Case study on US and Chinese culture in business life and negotiations. Sales and negotiations class 2011 Guanxi in Jeopardy – Case Study Intercultural Research In order to find out in what way the American culture of Electrowide as opposed to the Chinese culture of Motosuzhou will influence negotiation attitudes and positions, some intercultural research needs to be done beforehand. In assessing these cultures at an informal level as well as a business or formal perspective, I need to become aware that not all actions or behaviours can be directly explained by cultural differences alone. Sometimes it is a party’s incapability of correctly identifying its position or leverage points within the negotiation which causes rudeness or misunderstandings. Given that in this case (Electrowide VS. Motosuzhou) a linguistic barrier has to be overcome as well, makes finding the right conclusions even harder. Therefore I first need to have studied both cultures intensively in order to come up with a revised preparation for a new negotiation. China To start with I will talk about The People’s Republic of China. With its 1,300 million inhabitants, ancient history and innumerable traditions and customs it is perhaps the most difficult culture to study and to understand as a Westerner. Nevertheless it is a country that has intrigues us all over the course of history. Giving us many great inventions in the past and probably also in the future, as it is manifesting itself in becoming...
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...Being in business development and having an opportunity to win a substantial contract in the previously untapped market in China can cause one to salivate. Meridian Software Inc. is in the ultra-competitive computer and network hardware manufacturing business based out of San Jose, California. Having the chance to expand your foothold into a government contract with the Chinese Ministry of the Interior will look phenomenal for your senior management and really show true initiative. When doing business with a foreign government, it is ideal to have a consulting firm provide advice and guidance on how to approach culture differences. Luckily for Meridian in this situation, the consulting firm ICC, who specializes in international and cross-cultural business predominantly in China, has been hired to provide quick feedback in the Chinese language and culture. One part of the memo is particularly eye-catching; it states the following: “You should plan to spend at least three weeks in Beijing, and we should seek (and plan for) daily meetings with various MOI officials. The meetings should be staggered so that we meet with each relevant official individually every 2 or 3 days while in country. At each meeting Meridian should begin the meeting by presenting the MOI official(s) with a gift, and the value of gifts received by each official should increase with each successive meeting. We recommend that you choose gifts from the tiered lists in Appendix A. It is likely that MOI officials...
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...Executive Summary This paper proposes the implementation of self-directed teams (SDTs) in the Roaring Dragon Hotel (RDH) in south-west China after the termination of the contract with Hotel International (HI). This proposal will detail the advantages of implementing SDTs in an environment that is influence by guanxi networks in order to increase guanxi influenced and as a direct result increase profits. Self-Directed Guanxi Teams Introduction The provincial government decided to hire an international organization to manage the RDH, to develop the hotel into a five star quality hotel, and to increase the profits of the hotel. Hotel International (HI) was the organization selected and after various financial and culture problems, the provincial government terminated the contract within six months and reinstated the former General Manager Tian Wen. Background The Roaring Dragon Hotel spiraled into financial decline within six months after Hotel International took over of management and failed to, as Grainger (2008) stated, “help realize the hotel’s potential” (p.2). HI installed a new general manager and hired eight professionals to manage the transition. HI managed to reduce the hotel staff, began renovations but could not increase profits as they were hired to do. HI failed to communicate properly to the staff and could not retain employees crucial to conducting business in the region. At the end of six months, HI’s contract was terminated and the hotel’s management...
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...This proposal addresses the issues of guanxi neglect at Chinese based hotel Roaring Dragon Hotel (RDH), a state owned enterprise that was taken over by an International management called Hotel International (HI) to arrest the declining resources of the RDH and how the employees faced the cross culture difference trying to adapt to the new modern practices set by HI. Initially RDH was a guanxi based hotel where social connections were important which led to poor efficiency in its business and when HI took over RDH to modernize the hotel, employees faced a lot of resentment due to new cultural adoptions, communication differences and redundancy. HI oversaw why guanxi was very important in that area and success in any business lies in appreciating the differences of both cultures and perform business accordingly. This case is a perfect example of how not to conduct International business in guanxi based organizations. Introduction The Roaring Dragon Hotel (RDH) is a state owned enterprise which started in 1950s. It mainly conducted business based on guanxi until the Provincial government felt that the Hotel’s potential was not used properly and the management conducted business carelessly. So, the government decided to have an International Management company take over RDH to change the organizational culture prevailing at RDH and to increase the profits of the hotel or improve the quality of service that other competitors provided and also maximize the performance of the employees...
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...1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China? According to the closing case on page 117 of the textbook, guanxi is based on reciprocity, which is the undertaking of higher authority to accept an obligation to return a favor in the unspecified future whenever they benefit from the guanxi network. The development and expansion of the guanxi is a form of social investment that enriches the executive's resources and future potential. The importance of cultivating guanxi and guanxiwang in China is to realize the imperativeness of personal connection between two individuals who are bounded by an implicit psychological contract to follow the social norms of guanxi (Hill, 2009, p.105). The norms include self-disclosure, dynamic reciprocity, and the long-term equity principle. Establishing connections in relationships would help do a better job in completing an assignment and may be able to bend the rules for a temporary time period. The society of China lacks a strong rule-based legal tradition, thus guanxi and guanxiwang is becoming a necessary and important mechanism for building long-term business relationships and getting business done in China successfully. 2. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently does? China cares very much about its culture...
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...Throughout a Chinese person's life, Mianzi must be maintained and enhanced through giving to and receiving from others in both words and actions. It may be something as small as who gets in the elevator first to the awarding of multi-million dollar contracts, but without Mianzi you will have very little power or influence. To make someone lose face or even unknowingly is a huge dishonor and could mean the end of a relationship. The second core concept is Guanxi(Connections). Guanxi literally means "connections" or "relationships" as it essentially boils down to exchange favors. As the saying goes, you scratch my back, I will scratch yours. Guanxi can loosely be compared with the idea of networking in the west, but usually goes much further in terms of developing and nurturing the relationship through social exchanges and favors which must be repaid at greater value in time. Relationships between family, friends and business associates are often closely interwoven. In such an environment issues of corruption are not uncommon when Guanxi obligations take precedence over normal rules or laws. Source: I understand the core concepts of social intercourse in China profoundly. It is depends on my experience, because I am a Chinese. The social intercourse is very complicated. It is hard to adapt to the society if you are from other culture. To be successful in China requires different ways of thinking. A Chinese historian professor Yi Zhongtian puts this way the Chinese people are honest...
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...Economics Studies Australia (ACESA) Guanxi Neglect at the Roaring Dragon in South-west China: The demise of an International Management Contract Stephen Grainger1 University of Western Australia ‘guanxi neglect – neglecting opportunities to show respect towards guanxi relationships’ Abstract This paper introduces the concept of guanxi neglect through a case study that describes the takeover of a formerly Chinese managed hotel by a western based, international hotel management company. Specifically, it covers the cultural conflict that occurred for employees trying to adapt from the former Chinese relationship (guanxi) based planned methods of hotel management to that of the more market oriented, management company. Conclusions that are drawn highlight cultural characteristics and issues that companies taking over or approaching joint-ventures with SOEs, are advised to be aware of. In recent years, the hotel business environment in south-west China has undergone significant changes. China’s opening-up has encouraged an outbreak of new hotel construction and property speculation as companies and investors hope to cash in on the domestic and international exposure of the unique region. Prospects for growth in the number of tourists and investors visiting the region in the future were good. 1 Correspondence to: Stephen Grainger The University of Western Australia Perth, W.A., AUSTRALIA Email: sgranger@arts.uwa.edu.au Grainger, S., ‘Guanxi Neglect at the Roaring Dragon in...
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...July 13, 2010 GM598 – International Business Case Analysis Assignment: DMG-Shanghai 1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China? According to the closing case on page 117 of the textbook, guanxi is based on reciprocity, which is the undertaking of higher authority to accept an obligation to return a favor in the unspecified future whenever they benefit from the guanxi network. The development and expansion of the guanxi is a form of social investment that enriches the executive's resources and future potential. The importance of cultivating guanxi and guanxiwang in China is to realize the imperativeness of personal connection between two individuals who are bounded by an implicit psychological contract to follow the social norms of guanxi (Hill, 2009, p.105). The norms include self-disclosure, dynamic reciprocity, and the long-term equity principle. Establishing connections in relationships would help do a better job in completing an assignment and may be able to bend the rules for a temporary time period. The society of China lacks a strong rule-based legal tradition, thus guanxi and guanxiwang is becoming a necessary and important mechanism for building long-term business relationships and getting business done in China successfully. 2. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all the rules and regulations, rather than trying to find...
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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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...challenges faced by management due to difference in culture. Roaring Dragon Hotel (RDH) was state owned hotel in southern part of China and guanxi was integral part of RDH and its business. RDH was facing a tough competition from its competitors who had more westernized corporate oriented culture. The main issues of RDH management responsibilities; understating the different culture, employees, customers, market trends and effectively executing the good management qualities are addressed in the proposal. By understanding and acclimatizing to the different cultures is the new way to develop management skills effectively is suggested. This method eliminates any unwanted miscommunications within the team and provides a platform to understand the how employee works in different cultures and thereby increasing the productivity of the organization. Introduction: RDH & Guanxi Roaring Dragon Hotel (RDH) was one of the most famous and esteemed three star hotels in the southern part of china in 1960’s. It was considered as the state owned enterprise (SOE). RDH was famous for its Guanxi practice. The business basically depended on the connections or relationships of its employees. Guanxi is a relationship that exchange favors and mutual benefit of each other (Chen,2002). Guanxi practice was integral part of many businesses and organizations in China.RDH was famous for its overstaffing, outdated work methods...
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...Hotel: Intercultural Communication | Bader Ali | | | 10/25/2015 | This is a proposal for the Roaring Dragon Hotel case study. It Includes an Executive Summary for the whole paper starting from introduction down to the conclusion. This will also include out-sourced researches to help clarify the dilemma of lack of communication along with the ignorance of Guanxi. | Executive Summary: In this proposal, you will read briefly about the history of the Roaring Dragon Hotel and where does it stand in its industry. There will be emphasis on how relationships, Guanxi, were a major source of income and interest. This proposal will focus on the setback of internal cultural communication in the hotel and how it affected the hotel’s evolution. The hotel decided to grow, from a 3 star to a 5 star hotel. A foreigner team of specialists were requested for the change procedure. The team was not made aware of the culture they are stepping foot in; add to that, they did not speak the language. The Management excused themselves from explaining to the foreigners what inner value does their employees hold; Guanxi. The employees were not told about the change and its phases. The employees did not understand the language of the outsiders nor their unfairly perceived actions. The evolution team should have invested some time in researching the culture of China, the culture of the hotel, and its business routine. The management members must have translated the message of the transformation...
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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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...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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