Cultural Analysis of China - Essay Example

Issues in international business Rationale of Taiwan Taiwan is an island being surrounded by Japan and China mainland. The country has a unique and beautiful horizon and environment for the holidays. The beaches of the country also provide an opportunity for various business activities which may include those such as hotel management and tourism (Hofstede 2010, p.500). These features made me attracted to the country and therefore explored various other business ventures that an individual can invest resources. Other reasons for the attractiveness of Taiwan is the type of the governing body that fully implement the use of absolute democracy, and the citizens are given the freedom and their rights are highly respected. As the economy of the country is also still on the increase, investing Taiwan provides a high possibility of enormous profits (Hofstede 2001, p.600). Cultural Analysis of China The Chinese culture is one of the oldest and unique cultures in the world, and the culture’s components include music, literature, visual arts, ceramics, religion, morals, and architecture. One of the most admired cultures of the Chinese is the concept of “Face” which is concerned with is more concerned with an individual’s image and credibility (Brewer 2007, p.114). In the Chinese setup, it is an offense to insult, shame, demean or embarrass an individual either in the business structure or their social lives. Chinese family life is highly regarded, and the husband was taken to head of the family having full control of the home. This has however, changed in the current family setup and the father do not fully have control on the family and also does not fully influence the decisions made by the children and also he plays no role in marriage arrangements like the ancient times (Guiso et al 2005, p. 88). The Chinese religious system gives recognition to only five religions which are Islam, Buddhism, Catholicism, Taoism and Protestantism any other is considered illegal despite their claim of freedom of religion. Out of the five religions, it is noted that Protestantism and Catholicism have made very little progress in the country and they have very few followers despite having gained roots all way back from 19th century (Harzing 2004, p.120). The Chinese language is composed of seven groups of different dialects and these have different variations and they include Mandarin which is highly spoken, Wu, Yue, Xiang, Min, Hakka and the least spoken dialect is the Gan (Hassel & Cunningham 2004, p.81). These dialects are unique, and they form something like a language family unlike in other countries where the languages from a number of regional groups. China has a great attachment to their art as they act as the basis for their mystical and spiritual history. This is depicted in most of their paintings and sculptures which show figures of Buddhism, which is a deity (Hick 2003, p.66). Similar spiritual attachment is seen in the Chinese musical instruments such as the guqin and the flute-like xun which also indicates their unique culture. It is noted that China is the main birthplace of martial arts such as the Kung Fu and the Shaolin Monastery which were mainly for survival purposes. In the dressing codes, Chinese dress just as any other individual in the world expects that they have more preference for brown and yellow colors. Women dresses are often preferred to be black and the red color for special events and ceremonial activities (Guiso et al. 2005, p. 92). Chinese Business Culture In the global business sector, numerous western organizations view Taiwan and China as a solitary entity with indistinguishable cultures. Notwithstanding, political issues have created more than the division of the Taiwan Strait; sixty years of social and psychological contrasts now separate the two neighboring countries (Hill 2005, p. 54). Doing a successful business requires a full and deep understanding of the Chinese cultures, and it is noted that most of them prefer their culture than any other. Chinese society is highly hierarchical and in the business sectors the top management is concerned with the business decision makings, and the lower managers have very little power in the control of the business. This is very different from the business structure in Taiwan where the society is democratic “government by the people” (House et al. 2004, p. 88). In Taiwan, every individual member of the company or organization has equal opportunities in contributing to decision-making. Taiwan business structures are also less hierarchical, and they put more emphasis on pragmatism and getting the job done than on convention and system. This more adaptable methodology is undoubtedly helped by the nonappearance of large quantities of real combinations (Javidan et al. 2006, p. 900). In such littler operations, the principal chief decision maker has close and direct contact with the partners in the organization thereby ensuring fast and efficient decision-making. Due to liberalization, Chinese Business leaders transfer risks to consumers for their personal search for profits. This is in the form of high prices due and low-quality products. The gathered extreme managers of the nation, in the wake of working for a lowest pay permitted by law throughout recent decades, end up tossed into the pit of monetary reality (Hofstede 2001, p.610). China is now captivated; on one hand sit the elites, voraciously seeking after delights and benefits and utilizing their influence to accumulate riches while, on the other, stand the individuals, paying the cost for low productivity through high inflation rates and widespread of poverty. Despite the desire for profit in Taiwan, the businesses also give close concern the individuals’ rights and needs (Leung et al. 2005, p.360). They ensure that the consumers are not exploited through high prices or low-quality goods. Entrepreneurial culture in China is also characterized by excellent personal and interpersonal relationships this ensures that there are good relationships with the main government and business bodies. This gives the business good business networks and good investment opportunities. Impact of Chinese Cultures in International Business and the Business to consider Different researchers have given varied definitions of culture in the context of international trade. House et al. (2004) defines culture set of parameters of collectiveness that differentiates each collective of individuals or items in a meaningful way. Hofstede (2001) further defines culture as the collective programming of the mind that distinguishes the members of one particular group or category of individuals from another (Douglas & Amal 2006, p. 20). From the definitions, it is, therefore, vital that cultural dimensions are clearly identified and defined so that their impact on the international trade is noted. Hofstede forwarded cultural aspects that are very crucial in different countries involved in the international business as the dimensions help in the relationships with one another which facilitate proper understanding between the parties involved (Marieke 2010, p. 172). These dimensions were Power Distance, Uncertainty Avoidance, Individualism, Masculinity and Long-term Orientation. These aspects despite numerous criticism, they have remained the dominant model for cross-cultural research and in their use in international business. This model is used by the Chinese in their international business operations, and it propels their international business success (Nancy & Gundersen 2008, p. 101). Chinese often employs the use of less of Power Distance Index (PDI) that has facilitated their marketing internationally. This is because their salesmen use humor to attract the customers thereby convincing them of the quality of their products. This increases their sales more than those countries that employ no use of humor (Reeve 2002, p.79). Use of high Power Distance indicates difference in the social status of the individuals hence it poses a challenge in the international trade. It is also noted that power distance is concerned with customers making purchase decision based on their emotions and not on the market information thereby its use reduces the customer and producer relations (Hofstede 2010, p.505). China has therefore gained larger market scope internationally due to its use of Individualism and low Uncertainty Avoidance, and this has made it also to interact well with other international cultures (Herman & Petter 2009, p.101). China’s current advancement in inventions and technology is noted to be attributed to the presence of low power distance. This has improved the country’s thinking capabilities and improved the nation’s marketing of their products (Harzing 2004, p.123). It is due to the proper international marketing strategy that the country has been able to produce commodities that meet the various tastes and preferences of customers globally from different cultural backgrounds. This has also improved their management strategies and thereby expanding their global market scope (Hick 2003, p.66). Different schools of thought on culture have led to some generalization thus resulting to some elements of culture such as etiquette, gestures, customs, and the concept of family, status differentiation and trade customs. The sensitivity of these elements by an international firm will profoundly lead to the success of that particular company in the foreign market (Brooks 2015, p. 400). This applies to Taiwan that for the success of its operations in China the country must be very sensitive to the different and diverse cultures in the country. Taiwan must also fully understand the business etiquette and the common language being used in Chinese business environment and their different business and trade customs (McGovern 2014, p. 1200). Being conversant with the variety of information is also very vital in the gathering and dissemination of information in the business sector, and this has a significant impact on the international business operations. For smooth operations of the Taiwan companies in China, they should besides the common international English language; they will need to understand the commonly spoken national language which is Mandarin. This will enable them fully understand the customer tastes and preference at a personal level and not depend on the opinions of others (Sherlock & Reuvid 2011, p.400). This will also enable the Taiwan business people and investors to understand the market structures and how to relate with the locals. One of the biggest business opportunities for Taiwan in the Chinese market is in the Alcoholic Beverage Market. China’s disposable income is increasing considerably due to the expansion of their industries and massive exports. Over the years, individuals have been consuming locally produced alcohols but with the increase in disposable income, individuals can now afford to drink imported alcohol (Gaisford & Alexander 2007, p. 500). This, therefore, provides an excellent business opportunity for Taiwan where they can export their beverages to China thereby expanding their business scope. Another contributing factor to the desire for more alcoholic-beverage in the Chinese market is the change in the social and cultural practices. This includes the increase in the number of women that consumes alcohol hence this increases their desire to try new foreign varieties (Block & Collins 2011, p. 120). It is important to note however that to tap Chinas alcohol beverage market effectively, organizations must conquer certain snags. For instance, Taiwan organizations must decide how to modify or promote their products to meet and satisfy customers’ tastes, preferences, and needs. They should likewise move through a changing administrative business environment (Herman & Petter 2009, p.101). Conclusion From the above illustrations of the various cultures between China and Taiwan, it is noted that the two countries have some similarities in the cultural practices though they are very diverse in their business operations. It is realized that most of the Chinese industries are highly profit oriented with minimal attention to workers welfare. It is, therefore, vital for Taiwan to change this perception in order to capture and survive in the Chinese markets. Improving in their interpersonal relationships with the Chinese government and business sector will also enhance their chances of increasing their market share and international relations. More importantly, for the success of the Taiwan business, they will be obliged to understand the local language of the Chinese which is widely spoken and their cultural behaviors. This will ensure close contact with the customers thereby understanding their desires and tastes. List of References Block, C., & Collins, R 2011, Doing Business in China for Dummies, John Wiley, New York Brewer, P 2007, Is there a cultural divide in Australian international trade? Australian Journal of Management, Vol.32 (1), Pp.113-34. Brooks, J 2015, Business Adventures: Twelve Classic Tales from the World of Wall Street, John Murray Publishers, Cambridge Douglas, D. & Amal K 2006, Developing a multidimensional instrument to measure psychic distance stimuli Journal of International Business Studies, Vol 10 (6) Pp. 1-25 Gaisford, J., & Alexander, W 2007, Handbook on International Trade Policy, Edward Elgar Publishing, Cambridge Guiso, L., Sapienza, P., &. Zingales, L 2005, Cultural Biases in Economic Exchange, National Bureau of Economic Research. MA, Cambridge Harzing, A 2004, The role of culture in entry mode studies: from neglect to myopia’. 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