Another factor was a result of watching the technological revolution of the 1990s. Chinese leaders wanted China to participate in these developments, and this would be much easier if China was seen as a satisfying economic partner. Cooperation with WTO would also include protection of intellectual property (Prime, 2002). WTO membership is also expected to attract more foreign investment, some of which would bring desired new technology or help enhance China’s own capabilities for technological development. The fact that China joined the Information Technology Agreement, which phases out all tariffs on information technology products by 2005, gives credence to this as one factor supporting membership (Prime, 2002).
The objective of this paper is to discuss the importance of guanxi in the business contex. This essay posits that guanxi is the key factor for doing business successfully in China, which it helps to build up corporate reputation, growing market share and minimaizing the risks of uncertainty. A theretical discussion will ensue, highlighting key debates and ideas concerning the importance of pre-departure preparation, cultural awareness and the significance of guanxi in doing business in China. Chinese Culture There is not one universally accepted definition of culture; a number of key cultural concepts and debates are needed to clarify this term. Chinese culture is considered to be different in many ways from that of the West (Carlisle and Flynn, 2005; Buckley, Clegg and Tan2006; Tung, 1986).
Total quality is a philosophy and way of conducting business which focuses on several specific areas. (Oakland, J, 2000) It will bring Chinese companies many benefits in every aspect. Firstly, Customer Relationship Management will be paid more attention to compared with Chinese firms' previous strategies. As a saying, "without your customers, you will have no business." Every organization depends on their customers and therefore should meet customer's requirements and strive to exceed customer expectation.
One should graph the supply of Chinese goods and services and demand for Chinese products by other countries. As Chinese policies are placed in effect the supply curve shifts to the right because of improved quality standards and higher production capabilities. Open-Door policies also indirectly increase the demand for Chinese goods and services due increased Chinese competitiveness on foreign markets. Works Cited http://www.wissago.uwex.edu/test/joe/1992fall/intl2.html. http://www.china-embassy.org/scitech/med.htm.
For instance, DT Communications which is a Hong Kong PR firm helped an American fashion brand, Forever 21, to launch their business in China. DT Communications made a series of campaigns for Forever 21 to intensify the brand’s image, draw the attentions from the media and fit in the market. They highlighte... ... middle of paper ... ...In the case of the ad of Sunrasia Organic, using English narration may convince customers to believe that the juice sounds healthier, more reliable and is worth to be more expensive than the same juice from the others’ brand. On the contrary, the ad of UNIQLO uses both English and Chinese, which seems to be more approachable and comfortable to the public.
Undertaken by eBay also can be an opportunity to expand global market for Gmarket. Gmarket and Auction are planning to transform C2C open market over the e-commerce portal site. Due to these changes, those two companies diversify the revenue source from transaction fee to advertising fee. In China, Taobao takes almost three-fourths of the market share. Its free services competed successfully against rival eBay EachNet.
This is because the cultural perceptions of consumers in the two countries influence the decision of shoppers in purchasing luxury products. In marketing, the focus should be on the effective use of price as a major tool for penetrating the Chinese market as discussed in the paper. Pricing techniques The use of the premium pricing together with the skimming technique in which the company will price their products higher than those of competitors before reducing the price with progression in time are the selected marketing mix technique for consideration by sabon. The company will use the first strategy in targeting the high-end market in pricing their products since the strategy works well for Western companies that seek to establish their presence in the Chinese market. Higher pricing in China will captu... ... middle of paper ... ...ew of the prices takes place.
By and teaching staff members on concepts such as Guanxi and Mianzi, relations can be built more effectively which may result in greater reputation amongst the Chinese as well as returning customers. It is also suggested in this report that Chinese customs, traditions and superstition is taken into consideration. Due to the importance of Chinese superstition, it can be crucial for hotels and businesses to adjust to some of the beliefs. By recognising elements that are significant in the Chinese culture, a greater relationship can be sustained and help further promote tourists to visit the US.
“Face” is central in social control, therefore, the Chinese place fundamental importance on it. The word “face” has acquired a meaning in English that approximates what “mianzi” means to the Chinese. “Saving face” can be defined as arranging a delicate social situation in such a manner that any negative critique of “face” is muted. “Losing face... ... middle of paper ... ...improve employee performance according to Carter (2009). The traditional Chinese culture might have conflicting influences on the success of programs that involve employees.
Citibank's attempt to expand into China can be based on the previous accounting practices experience it had with this country. Citibank previously worked with the Public Bank of China (PBOC) "to improve the internal auditing requirements within the Chinese banking system" (p. 19). As a result, the PBOC recommended these practices to other banks throughout China. Citibank has established a human resource structure for training local people into becoming successful managers.