Chinese Business Practices and Business Ethics - Term Paper Example

Communication in Business Care Study Summary 1 Introduction 2 Prior to the meeting 3 Areas of potential Miscommunication: 6 Conclusion: 7 Reference: 8 Summary The following paper is report on Chinese Business Practices and Business Ethics, it seeks essentially to inform and advice Mr Arthur Chawell, thereby assisting him in his task of acquiring the venture from a fifty year old Chinese widow by the name of Mrs Chang. The paper looks at the ways in which Mr Chawell can create a good first impression on Mrs Chang, thereby assuring and coaxing her into taking the negotiations further from the first meeting. The report tries to be exhaustive and looks to cover every aspect of a meeting and the creation of a positive first impression. It covers issues like verbal and non verbal communication strategies, the way in which to dress and an exhaustive list of the dos and don’ts during the course of the meeting. It will also look to cover and advice the two most important areas where there can be a change for miscommunication to happen. Introduction A business culture can be defined as A unique set of expectations and assumptions about how people are supposed to act in business. It therefore has to be remembered that what is considered ethical can vary from one culture to the next. Business behavior therefore needs to be localized in order to work with the newer expectations and meet the challenges that these impose. In any given business deal, effective communication coupled with a favorable first impression can go a long way in ensuring the success of negotiations. When Mr Chalwell goes in to the meeting in China he needs to be aware of a few basic rules and he would need to keep in mind some fundamentals if negotiations are to go as he desires. There can be no fixed recipe that can be adopted by him guaranteeing him success but it can said with some level of assurance that if he the following basic fundamentals he should be able to leave a good first impression without offending any of Mrs Leng’s sensibilities. Communication in this particular case would be taking place in the context of a deal which will require My Chalwell to acquire Mrs Chang's venture for as less of a cost as possible. This will then mean that if the terms of agreement are favorable to MR Chalwelll, he has to be able to please Mrs Chang and get her to agree on the conditions of pricing that he is prepared or equipped to offer. For this purpose at the first meeting at least it would be absolutely essential for Mrs Chang to like Mr Chalwell’s approach to life and the way in which he approaches business opportunities. It would also help if Mr Chalwell was able to present himself as someone who is knowledgeable about the Chinese way of doing business, thereby assuring Mrs Chang about the future of her venture. It would therefore be most advisable that Mr Chalwell learn the rules of Chinese business ettiqutte before approaching the meeting, thereby being able to stand on firm ground as far as the methods of communication are concerned. Prior to the meeting It is important that the work on the strategy starts well before the meeting. It is here that the choice of the venue and the number of associates that are go need to be decided. Also Mr Chawell needs to be clear about the three following questions: 1. The ranks of the two parties involved 2. Points to be discussed , and 3. Why he has chosen Mrs Chang and not someone else and why she should chose his offer over others How to start: First and foremost, the meeting has to start with a shirt yet firm handshake. This would send across a clear sign that Mr Chalwell meant business and that he did not doubt Mrs Chang’s ability in any manner considering her an equal as far the negotiations were concerned. The meeting would most probably take the route that Mr Chalwell ensures that it takes by virtue of the fact that proposal is his and it is he who has to do the convincing. Ideally he should remember that in Chinese business custom, business cards are exchanged at the beginning of the meeting. Mr Chalwell should ensure that he has an adequate supply of cards at hand. It would also be advisable to get a these card specially printed so that at least on one side of the card, the necessary introductions are printed in Mandarin and that the cards be engraved in gold because of the fact in Chinese tradition this is considered a sign of prestige and prosperity. When the cards are exchanged Mr Chalwell has to ensure that he gives the card at least a customary glance or a look through, thereby indicating his interest. What to do: The meeting should have a start, middle and an end. Chinese do not consider it in good taste to jump straight to the point of discussion, moreover it would also seem a little aggressive and rude if the very beginning is made with the exact agenda of the meeting. The solution is that it should start with small talk or polite conversation thereby putting Mrs Chang at ease and ensuring her that she is still on familiar ground. It would be advisable to stay away from controversial issues and keep personal biases aside for the length of the discussion. Topics like political ideology should be avoided at all costs. It would also stand Mr Chalwell in goes stead if, during the course if the conversation he stayed away from negativity and answering any given query with an outright no. By custom the people in the Oriental part of the world so not like usage of the word, in fact there are extremists that abhor its use and take an instant disliking to ones that do answer with a knee- jerk, ‘No’ as a response. There are in fact a number of other ways in issues that are uncomfortable can be side tracked especially at the first meeting, that is after all the most initial stage of negotiation. Responses like ‘Il look into it’ or ‘Let us see what can be done about the matter’ need to be kept in handy for proposals that are objectionable or even completely out of the question. What not to do in Body Language: At no point in the meeting should Mrs Chang be touched, gestures like a pat on the shoulder which are completely accepted parts of Business dealings in the western world are absolutely unacceptable to the Chinese. Even if Mr Chalwell is person who likes to gesture and explain his points by making hand gestures etc, he needs to abstain from doing so during the meeting. This is another habit that the Chinese do not really like. There should be no looking directly into Mrs Chang’s eyes while trying to establish a point as this is looked upon as being highly offensive. Verbal Communication must dos: Sentences need to be short, crisp and precise. Humor should be kept out of the door during the process of the meeting. There should be short pauses that need to be taken between sentences or it gives an indication of an urge to rush through the proceedings thereby showing that the meeting is not really worthy of time. You should also take care not to get agitated in case the pauses that Mrs Chang takes are frequent or long. This in an accepted form of tradition and is in fact customary. This is an accepted custom and the pauses are a sign of measured and considered thought in Chinese culture. And most importantly is important that Mr Chawell understands that he cannot expect an immediate response out of Mrs Chang.The Chinese like to consolidate their position in a measured and considered fashion, preferably after they have established a personal contact, before closing the deal. How to Dress: In China, at least in professional matters related to meetings and business dealings the accepted attire is leaning on the conservative side. Mr. Chalwell should make an attempt to stay away from any kind of drastic fashion blunder and stick to a suit which is preferably dark and unostentatious. It should be classy without being loud. The way Mr Challwell and his associates are dressed would acquire a special meaning by virtue of the fact that the business in question is related to the fashion industry. It would be expected for Mr Chalwell and his associates to be aware of the accepted dress cod and anything different might be considered unacceptable or rude Areas of potential Miscommunication: There can be ways in which some kind of miscommunication can happen. Some of these might include gestures that have been made Mr Chalwell’s part in goodwill but were interpreted in the wrong manner. These would include: 1. Gifts and presents: The Chinese consider gifts especially those that are expensive as being an effort at bribery. They should therefore be essentially refrained from and avoided. It is true to en extent that a big part of many of these prejudices have been eroded over the years but there are still the ones that are old fashioned enough to believe in them. Expensive gifts are therefore a complete no. in case Mr Chalwell insists on giving a gift or a present; it should be done not at the beginning of, but at the end of the negotiations. Also effort should be made to ensure that the gifts are given to each one of the executives that are present and care should also be taken to address the color of the gift, red is the preferred color. 2. The second area of potential miscommunication is with regards to political issues. There has to be a marked respect and a show of objectivity that needs to be displayed when referring to controversies like Tibet or Political ideologies. The issues are sensitive and thus need to sensitive handling. Conclusion: There are therefore a number of factors that need to be kept in mind while Mr Chawell goes into the phase of negotiating. The list at surface looks difficult and long but is infact very easy to accomplish with a very little amount of effort that is required as the input. What has to be remembered by the team is the fact that there has to be respect for the one in front and not an attitude that is condescending in the least. The rest should ideally fall into place on its own. 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SAGE, p11-17 Chen M J, Inside Chinese business: a guide for managers worldwide, 2003, Edition: illustrated, Published by Harvard Business Press, p121-127 Read More