Cultural Sensitivity: China - Essay Example

Cultural Sensitivity: China A. Discuss three major cross-cultural differences that would need to be taken into consideration if your company were to expand into this market based on your selected country. 1. Work-group Characteristics China is a relation-oriented state valuing the essence of undertaking any venture or decision with a combined effort (Yang, 2011). Therefore, this implies during decision-making or when intending to get into a serious venture with them one ought to focus on establishing good relationship platform.

This is because Chinese normally take time to understand whom they are dealing with to gain trust, which is contrary to other states like US. Americans focus on the task, hence being achievement oriented whereas Chinese are relational oriented. It is essential for the management to consider aspects of developing and maintaining guanxi before embark on imposing its policies (Yang, 2011). Since, this aspect enables Chinese to ascertain “in-group” and “out-group” people whereby the latter encompasses those who are untrustworthy when doing business characteristic of Chinese managers (Sullivan & Goh, 2011). 2. Risk-taking/Risk-avoiding Chinese culture Contrary to the Western states’ managers, Chinese exhibit heightened level of risk-avoiding tendency especially in situation or ventures in which they feel uncertain.

This is because they do not wish to take uncertain risks that may deprive them competing opportunity in the global market. Therefore, foreign investors and especially businesses that have established themselves in China ought to exercise a lot of patience when handling as well as dealing with Chinese employees or managers. This is by encouraging them to take calculated risks not to try luck but as a way of learning process (Gallo, 2011). However, this ought to be a long term learning process because at the moment business managers ought to ensure they participate fully in taking risks, which are extremely sure of will end up being successful. 3. Intercultural management training Since not all corporations’ managers emanate from other states, it is essential for a firm to have effective intercultural management induction (Zamor, 2008).

Mainly, this will help managers especially those emanating from other states know exactly what their counterparts like and esteem while doing business. Since this is what will enable the business to thrive in China after having learnt varied economic, political and business strategies that may be extremely diverse from their mode of implementation in other states (Zamor, 2008). This is evident especially when it comes to Chinese business mentalities and practices, which are indispensable for any business to thrive in China (Zamor, 2008).

China is a homogenous state having distinct management practices, which every investing enterprise ought to learn and train any work force emanating from other states (Zamor, 2008). This to ensure they integrate varied workers as necessitated to work towards attaining their set targets. B. Compare U.S. business practices to practices in your proposed country for each of the following: 1. Product US’ perception of this aspect encompasses producing what they “Think” would have heightened competition in the market, gratify clients and eventually make more earnings.

Contrarily, this prompts numerous corporations incur losses in Chinese market whereby native players go with what their clients want. Therefore, Chinese deem the art of modifying products to align with consumer’s tastes is the role of engineers and formulators. 2. Price China’s mode of setting products’ prices differs greatly with that of US in that the latter focuses on having great margins as possible. This is because it will enable corporations into making more income or revenue, which is contrary when it comes to Chinese Market.

China’s per capita (PPP) is approximately fourth to that of US, which implies corporations’ in their quest to increase profits ought to operate with small margins but make more sales as possible. Hence, align with Chinese culture of saving rate. 3. Promotion Promotion comprises the most disregarded aspect of marketing by US corporations venturing in China who instead focus on other 3P’s in serving their clients. However, the old implication of promotion is still alive in China with its native dominant retail players displaying their products in stores in such a way to attract impulse buyers.

This greatly differs with US’ mode promotion because of being used to holidays and vacations like Christmas, which is contrary when it comes to China. 4. Place Both states seem to have similar perception regarding the aspect of “place” though US regard it as the top aspect. Hence, entail intensive and effective research before venturing fully in Chinese market. This is because of US’ perception of wanting to have adequate information concerning product’s “placement” that will enable corporations their target clients. C. Discuss two distinct ethical issues that you will need to understand and respect as your business expands into your selected country. 1. Idea of Confucianism The philosophy despite its establishment dating many years back, it is still characterizes Chinese mode of living and interactions while in the market (Ning, 2011).

Hence, emphasizing on the aspect of successful strategic alignment, which is only through integrating enterprise’s strategy and people’s behavior (Ning, 2011). This is because any investing firm cannot dictate what it deems to be effective in a foreign state (China) whose values is utterly different from those of the Western States. 2. Double standards Undeniably, Chinese regime imposes double standards on all investors who have ventured in the state to have high operational ethics, which is not evident when it comes to its local players.

Therefore, for any international player by mistake behaving unethically similar to other local players is unacceptable act even if it was due to evading local competition. References Gallo, F. T. (2011). Business leadership in China: How to blend best Western practice with Chinese wisdom. Singapore: Wiley. Ning, H. (2011). Case study on the influence of Chinese traditional philosophy to the enterprise management. Journal of Management and Strategy. 2(3). DOI: 10.5430/jms.v2n3p73. Sullivan, M. & Goh, A. (2011).

The Most Misunderstood Business Concept In China. Business insider. Retrieved on 18Th September 2013 from Yang, F. (2011). The importance of Guanxi to Multinational companies in China. Asian Social Science, 7(7). 163-168. DOI: 5539/ass.v7n7p163 Zamor, C. (2008). Intercultural trainings for German expatriates going to China. Hamburg: Igel- Verl.