Deal Focus vs. Relationship Focus

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Based on Richard R. Gesteland book, deal-focus vs. relationship focus is one of four patterns in the cross-cultural business behavior. More than a few divergences between deal-focus and relationship-focus make both of them will be grumble while working together. Deal-focus people will go straight to the work part. Deal-focus people can be assumed as aggressive, bad-mannered, and assertive. On the contrary, relationship-focus people will concentrate in build strong relationship before jump to the work part. In addition, relationship-focus people are calmer and more flexible in doing business. The examples of countries with deal-focus culture are Australia, New Zealand, Northern Europe and North America. At the side of relationship-focus, Korea, Japan, Chine, and Taiwan are the examples. Furthermore, there will be several explanations, analysis, and recommendations related with case “Exporting to Taiwan: Guanxi in Action”.

Taiwan is an example of a country that applying relationship-focus in the business. Relationship-focus people tend to do business with someone they familiar with. A relationship-focus people are avoiding business with a stranger. Therefore most of the businesses in Taiwan are happened between friends, family, or friends of friends. The connections or relationships that have to manage before do some businesses with Taiwan called as Guanxi (pronounced as gwan-shee). For this reason, Guanxi is one important key in having successful business in Taiwan and China.

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...

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...put several testimonials from the other customers with the purpose of increase the trust from Taiwan people. After that, I will introduce several advantages to do business with Glorious Paints regarding with the distribution system, product awareness, and pricing strategy. Glorious Paints need to provide an easy and fast distribution system, and also give competitive price to Taiwan customers. At some time Glorious Paints also can give special offer like free paint or big discount in Taiwan’s special event.

In summary, cross-cultural business will require the business people to learn several cultures in order to success the business. Glorious Paints can start with learns Taiwan’s culture to expand the market in Taiwan. Do not forget to join guanxi to minimize business risks. After Glorious Paints get the right guanxi, the other barriers will diminish one by one.
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