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Chinese cultures
Chinese cultures
The people's republic of china culture
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Doing Business in China How to do Business in China Overview: China remains an untapped market with great growth potential for companies seeking to do business in there. Be aware that the Chinese community is weary of companies entering the country because they believe that most companies are there to make a fast dollar. However, if a western company follows a few simple rules and adheres to some cultural outlines, success in China can be achieved. Culture: Building relationships are crucial in China. Also known as guanxi. It would be helpful to build a few relationships with companies prior to even suggesting that you want to operate in China. A person known to both parties should arrange introductions to a Chinese company. Chinese business people are unlikely to meet with strangers. Westerners will find that production, distribution, and advertising of a product or solution flows easiest once crucial relationships have been built. A large amount of business is conducted at after hour’s entertainment gatherings. Do not hesitate to bring small gifts as mementos of your visit. Learn the language. Although the country has many dialects, Mandarin is the official language of China. Lastly, do not be rigid in your ways. Deals are often delayed in China. Learn to be flexible. Meetings: The first rule of a business meeting in China is to be punctual. If a meeting is set for 8am, then be there at or before 8am. It is customary for the senior member of a group to enter a meeting room first. This member also guides discussion during the meeting. Government: Never underestimate the power of the Chinese government in business. Remember, the communist party is still the biggest company is China. Remember that a network of business executives in China extends not only throughout the corporate world, but also throughout the government bureaucracy. Many Hong Kong entrepreneurs will freely admit that it's important to grease the wheels of government bureaucracy with well-placed gifts and personal relationships with those in power. Proceed with extreme caution when it comes to gifts.
Discuss one significant obstacle each firm would face if they were to market their products in China. (Please note these obstacles may be different in each case.)
China’s view on business can be linked to its three general areas of religious beliefs: Confucianism, Taoism, and Buddhism. A brief description and there relationship to business practices are discussed below.
Bachman David. Bureaucracy, economy, and leadership in China : the institutional origins of the great leap forward: 97
Despite the fact that it provides enormous outlook for an expanding business, the chances of success without sufficient knowledge and skills is viewed as thin. China contain a hypothetical market of 1.5 billion people and a culture which has grasped the ethics of western business, so that doesn't make China any less engaging.
Almost every guru invokes the same rule: meetings should last no longer than 90 minutes. When's the last time your company held to that rule?
Doing business in China is highly based on the development of good personal relationships over time. They consider relationships more important than tasks. The emphasis here is that they are doing business with people rather than companies so personal contact and loyalty are important. There is a huge importance placed on sincerity above all other qualities. Their communication style tends to be very indirect. It is not uncommon for them to say “yes” to acknowledge they are listening to you but it may not mean the same as it does in other cultures. Chinese have a hard time saying no and the organizational structure is hugely bureaucratic so things are unlikely to happen fast. Their teams are groups of specialists working under a leader who may not be a specialist but will have links to the head of the company. Their structure is vertical so consensus from the team on decisions is common so expect the process to be slow. Chinese are punctual, cancellation or lateness may be seen as insulting unless good reasons are provided. They are quit...
...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
Shirley Ye, Sheng, and Yan Ma. "China Vs. The United States: Market Connections And Trade Relations." International Journal Of China Marketing 2.1 (2011): 45-57. Business Source Complete. Web. 13 Dec. 2013.
Introduction In the reading "A first time expatriate's experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played in strengthening and maintaining the international partnership. Controls Inc. was a subsidiary of the parent company Filtration Inc. and so was shielded from any outside competition. When Controls Inc. was given the charter to pursue its own business, they realized the need for being cost effective as a result of which they started an operation in Singapore with the name Controls Asia-Pacific with the prime objective to have a presence in the region and to study and evaluate any possibility of a joint venture. James has been an employee of Controls Inc. for the past 23 years with experience in managerial positions of about 15 years.
In 1995 Dell entered the Chinese market. With a population of 1.3 billion this was a great new market for Dell to tap into. IBM, Compaq, and Hewlett-Packard had all ready realized this and had opened offices in China in the early 1990s.
This helps to understand our social standing within our culture. In China, they value respect and use the group memberships we assume to help aid our communication with one another. Non-verbal communication styles are also just as important, if not more important, when communicating with someone from a different culture. It is best to always make eye contact and pay attention to the other person.
My advantage is my language skill. I can fully use that skill to develop new marketing for the company. Nowadays, many companies aimed to develop new marketing for new customers and earn money. China has a great amount of citizen and a super strong buying power. I can speak fluent Mandarin and I have known the pattern of how Chinese communicate which is quite complex.
All in all, the Chinese culture is vastly different than the culture we have in the west. Although that may be the case, we still have to learn and maintain a connection with the Chinese culture since we are so heavily involved in their economic system. Not only are we involved in theirs, they are greatly involved in ours. There are thousands of factories in China that make products to export to the United States. This means that we need to maintain a good connection with the Chinese culture in order to keep our “guanxi” positive with
James S. O’Rourke IV, Brynn Harris, Allison Ogilvy: Google in China: government censorship and corporate reputation Journal of Business Strategy Vol. 28 NO. 2 2007
Guanxi is a set of connections from several societies that lending a hand and keeping up each other. Guanxi plays the vital role in Taiwan and China business. While doing business with Taiwan or China, the first thing to do is getting the right guanxi. Chi...