Course: Year: Student: Tutor: Introduction English Anthropologist Edward B Taylor defines culture as a complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society. It is a way of life of a society; what they do, think and feel…
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This culture highly values personal relationships to an extend that, it is the basis on which long-term business relationships are formed. They get involved in an individual’s personal live prior to doing long-term business with them. At a social level, formal and informal relations make a big difference when it comes to business relationships. The Chinese culture would rather one pretends than to express an honest opinion or individualism if it will hurt or discredit another person’s feelings. Emotions are a private matter not to be shared in public. At social functions, there are certain rules that have to be observed failure to which a guest is deemed as disrespecting to the host. This etiquette at social functions control interpersonal relationships. Universally, smiling and laughter are used to express pleasure and humour but the Chinese culture also uses this as a response to negative occurrences. In the American culture, long-term business relationships are not necessarily determined by how well people know each other’s personal live. As long as objectives of both entities are met, business proceeds. At the social level, Americans freely express their emotions, opinions and individualism unlike the Chinese. Smiling and laughter in the American culture is for expressing humour and pleasure and sad emotions are also freely expressed. The Chinese businessmen place a great importance on personal relationships and social traditions when conducting business with one another unlike the Americans who place great importance on business issues. The political environment in China is not so friendly to foreign investors. Some political measures in place such imports being controlled by the government, their courts not enforcing contracts and holding back tax preferences for foreign investors delay businesses and cause mistrust to the foreign investor. In conclusion, culture is important since it allows members of a given society to function with one another without the need to negotiate meaning at every moment. Negotiations between Electrowide and Motosuzhou failed because four key criteria for the selection of a Joint Venture partner were not met as outlined below. Strategic complementarily Strategic objective is broad goal that an organization must attain for it to be successful in its strategy. Strategic complementarily implies that the strategies of the two organizations must complement each other. Electrowide’s strategic objective is to become a major, aggressive player in Asia. On the other hand, Motosuzhou’s objective is to team up with a foreign venture that will harmoniously work with government’s policies. This means that the ultimate direction comes from the municipal. This doesn’t complement Electrowide’s strategy and therefore, negotiations on a joint venture cannot work. Compatible operating policies Policies are rules and guidelines adopted by an organization to reach its long-term goals. They influence and determine all major decisions and actions in an organization with all activities taking place within the boundaries set by them. The two entities differed in their employment policies. For example, China still discriminates against women workers by placing them in lower positions with little wages which the counterparts, the U.S, have affirmative action policy where they don’t discriminate. Communication Communication is the sharing of ideas and information from a sender to a receiver. For it to be
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Joint Venture Negotiations in China Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/management/1449528-read-the-cases-and-answer-the-questions-see-the.
“Joint Venture Negotiations in China Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/management/1449528-read-the-cases-and-answer-the-questions-see-the.
According to Neidel (2010, p. 32), Confucianism is a theory which describes the Chinese culture’s value for relationships as a moral expression of ethical behavior. The Chinese people highly regard and value interpersonal relationships.
ursue a specific objective in which they share revenues, expenses, assets, and management roles. International Joint Ventures (IJVs) involve individuals, companies, or firms from different countries forming a partnership. Globalisation has resulted in the need for collaboration of companies of different countries hence the emergence of multinational companies.
A well clarified objective of purpose will place the International Joint Venture (IJV) in a powerful position. This will result to an efficient management structure that is characterized with accountability, responsibility, employees and organization structure modelling in the partner’s level.
According to the study conducted, M&S, in spite of being a globally recognized brand, had to deal with certain specific difficulties while entering the markets in the Asia Pacific region, especially in China being strongly affected by the cross-cultural divergences and considerably different customer preferences compared to the Western markets.
A joint venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses and control of the enterprise. This is in contrast to a strategic alliance which involves no equity stake by the participants, and is a much less rigid arrangement.
In fact, China's entry to the world market will make the international market considerably larger such that businesses from other nations must consider and be prepared for its ramifications.
All these are results of the uncanny ability of the Chinese in business negotiations where you cannot afford to practice a "here-today, gone-tomorrow mentality.
Small firms commonly get together to undertake the industrial goliaths. Similarly, large firms may develop coalition with nimbler and quicker smaller businesses. In such cases, small companies find the benefit of having association with the big names in the industry
In addition, the company performs other services such as close protection of commercial offices, security patrols, multi-family, CCTV monitoring, corporate facilities, and retailing. Subsequently, Syndicate Company offers security
of an international joint venture takes the form of two distinct business organization coming together to form a collaborated entity, where the two organizations can share the stakes of the organization starting with 50:50 share to any other ratio they might deem suitable.