Cross Culture Management in China - Case Study Example

CROSS CULTURE MANAGEMENT: As a Case Study of China Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name September 7, 2008 China left the world wonderstruck with a spectacular display of several events and colorful culture with the swaying nymphs of Buddhist mythology and inscriptions of Confucius as a part of the breathtaking opening ceremony of Olympics at Bird’s Nest stadium. It was an extravaganza with a portrayal of China’s most formidable historical achievements and fulfillment of dreams; also showing the formidable way that culture goes to make the sporting events the most enjoyable and corporate endeavor. I took up the event Olympic games’ of China to foresee the extent and dimensions at which global players bring the corporate spirit into the world of games to reap the harvest from the economic boom of China and tap its domestic market. It’s a best example of cross culture management which not only charged and gave boost to the world’s best sporting events but also a big platform for the corporate leaders to showcase their entrepreneurial skills as well as their innovations to the million audience world wide. Since the Olympic events of Los Angeles in 1984, the Beijing Games is a great chance for the corporate world to reach the global edge. Among the various CEO’s were, News Corporation boss Rupert Murdoch, H Lee Scott Jr., President and CEO of Wal-Mart Stores Inc and Greg Brown, CEO of Motorola as well as a host of executives from McDonalds, Volkswagen and General Electric to witness these greatest event. Mr. Murdoch with his Chinese wife Wendi Deng attended a lunch with the Chinese President Hu Jintao and reported their best intentions to conduct more business in China. The chief- executives of the companies knew that if they could hold even the tiny piece of the markets developed by Chinese 300 million strong emerging middle-class, it will be similar to as said by Peter Foster trying to break into the informal web of connections that fuel so much of business in China, known as ‘guanxi’. (Foster 2008: Online) Li Ning, a former Chinese Olympic player wearing a sportswear sponsored by Adidas was an Olympics torchbearer and bore a witness to the extent of mixture and blend of corporate and sports culture. Three generations of the Bush family, ‘Washington guanxi’ also created an aroma of friendly atmosphere to materialize the American commercial interests as both the President George W. Bush and his father, the former President George Sr. was present at the games. The commercial links of George Bush with China had become very close when President George W Bush’s brother Neil Bush was decided upon to get paid £200,000 a-year retainer by a Shanghai-based semi-conductor company run by Jiang Mianheng who was son of former Chinese President Jiang Zemin. (Foster 2008: Online) Many nations have started their business overtures around Beijing, which they hopefully predict would become good platform for their business dealing. Britain spent around more than £2m as a cost of opening London House. The dinner was also planned with electronics giant Samsung, hosted by the Olympics Minister Tessa Jowell and Michael Charlton, who was the chief executive Think London. It was a group responsible for attracting foreign direct investment into the British capital. (Foster 2008: Online) While touching the global markets, many commercial enterprises have to develop the cross -cultural management abilities in their working area. To understand the culture of the area and to develop the management styles accordingly is the biggest challenge for them. In several studies’, it was found that cultural difference is one of the biggest challenge before the corporate world after law, price, competition, information, language, delivery, foreign currency, time differences. The meaning and style of management itself sees a change when it reaches the corporate world. Where on one hand globalization has created a niche in the corporate world, same way on the other hand, it has increased a new set of problems and issues concerning to the management process amidst the partnerships in a corporate world. And as China is making headway in the economic and commercial world, many corporations are finding an opportunity to enter into the alliances with the Chinese companies and studying various business opportunities. It has been found that the great barriers created due to cultural differences like communication problems, higher transaction costs, differences in aims and proposals, differences in the various ways of cooperation and operating methods have left to the failure of number of Sino-foreign cooperation projects. There are number of questions ranging in the minds of the major as well as minor players in the corporate world like the ways to understand China and way to undertake business with Chinese people etc. These Olympic events have ended all these barriers opening the doors from various angles from the corporate across the globe. China’s initiatives of the reforms in the cultural management system showed how these reforms made the Olympic events most successful venture. China promised to deliver and safeguard the interests of the people to further improve upon their strategies and basic cultural rights and interests of the people. To maintain the spirit of the cultural management alive, they have decided to opt the Marxism approach into the social Chinese conditions, emphasize the need to foster education to develop latest advancements in Marxism culture. The Government promised to create the culture of peace and harmony, to carry forward various programs to bring in the improvements, and to promote social conduct. These and various other initiatives by Chinese Government has helped in the creating and building relationships with the outer world and helped to boost image of China as the most vibrant and flexible nation in terms of cultural mix. Now, business in the periphery of the Chinese world is not just to seek markets but also is learning culture of them; there is more to it than just sending their containers of goods. It is more of a building the cultural gap and the relationship bonds between all and it is also not just boosting your cultural image but also coming close to the culture of your counterparts. The Olympic spirit has bridged the divide between various nations and between East and West. Hosting an Olympic event was a long route towards the economic reforms initiated by China. Its open door policy enabled the doors open for other nations to invest in China. The policy was the effort of the Deng Xiaoping since late 1970. Before that China was governed by the self-sustained policies and radical politics of Mao Zedong, which never allowed any foreign investments. Learning lessons from the Mao’s failure, Deng took upon the initiative to set up reforms in the economy sector. His first goal was the promotion of China to open her doors towards the rest of the world, which the Chinese know as the “Open Door Policy”. This policy means imparting equal rights of trade among many countries. The policy became active in 1978 whereby four Southern states, Shenzhen, Zhuhai, Shantou and Xiamen were earmarked as Special Economic Zones because of their closer proximity towards the overseas Chinese community on the lands of Hong Kong, Taiwan and Macau and to further establish their overseas connections. The Government encouraged companies to invest and establish new factories by giving them tax relaxations, reducing tariffs on imports of raw materials, exemption of tax on capital goods, etc. Added to these four, Hainan Island was too earmarked special economic province and as the most important tourists’ destination. The place came to be popularly known as “Orient Hawaii”. (Colamon: Online) Innovative spree of Chinese entrepreneurs’ and government’s initiatives have added the spark to their national innovation to make the industries adapt to the economic development. This added to the social development and harmony between the social upliftment and economic China, the most vibrant nation. China has always endeavored to create a harmonious society to be built on a communion with people. It is a democratic society with emphasis on giving fair treatment and justice and laying emphasis on cultural harmony to pursue a path of common goal and prosperity. All the economic and social reforms created an environment towards the fruitful cross cultural management which was visible in the Bird’s nest Olympic stadium of Beijing but the opinion poll in the Economists Online has put a question mark? It was a question raised after the deepening thoughts on the other side of the effects of the atmosphere of cross-cultural managed in the best world event. The question raised was whether Olympic event generated any value for China and the answer to this question is straightforward yes. The ceremonies were spectacular, the Olympic games have shown the real spirit of sports: young people gathering at one venue across the globe sharing and experiencing same excitement for sporting events. It also introduced to the world’s best players, created an atmosphere of mutual cooperation and harmony. In the closing ceremony of the Olympic games, President IOC conveyed with warm heart, “We will leave China with warm memories of your smiles, your enthusiasm and your eager willingness to help. You are the future of China. We wish you the best”. (Olympic org. 2008: Online) He further added that the Olympic games had not just produced and brought the world’s best players but also brought the world at the doors of the culture of China and China also learned more about the world. They have helped in overcoming and breaking the barriers and also overcame several other difficulties like communication and language barriers, economic and social barriers etc. Around one-fifth of the population was exposed to the values of that China has all along espoused and experienced. These were the sport events placed at the service of the mankind and encouraging initiative drive and promoting good understanding between people, nation and religions of the world. Many improvements in the transit and public infrastructure might improve the quality of life and the conditions of environment. It has also increased the awareness of many social issues among the people like environment, areas related to the consumption of energy, sustaining of consumption of water, management of water etc. These all factors boosted the image of China before the world as a most culturally managed nation and will boost and further encourage companies to invest on its soils. But there is a doubt if excessive security arrangements and tight visa restrictions will hamper the investors and tourists and will that have effect on the business. Other problems that can crop up are: the emerging of the land disputes, opening up the corruptions at the official level, bringing into the world’s eye view thousands of people’s futile search into the capital each year to redress their problems. And also came on the surface, the dispute arising out of the abuse of power in several Chinese towns. Security was increased and tension also increased in Tibet and in neighboring areas of Xinjiang. This might increase the tension and grievances among the inhabitants Tibetans, which might raise their sentiments for independence. But these are all the ice bergs in the waves of social and economic impact Olympics created for the overall development of China and created an aura of cross cultural environment for other nations to follow. The Olympic games will leave the legacy of sports no doubt but more than that, it will leave the legacy of the well-developed managerial and entrepreneurial skills, organization structure and cultural etiquettes for the world of corporate management to follow. REFERENCE LIST Colamon. The Importance of Open Door Policy and its consequences in the economic development and society of Modern China. [Online] Available: http://www.geocities.com/colamon1/colamon.WBP.html [6 September 2008] Foster, P. 2008. Beijing Olympics: The ultimate business networking opportunity. [Online] Available: http://www.telegraph.co.uk/sport/othersports/olympics/2524463/Beijing-Olympics-The-ultimate-business-networking-opportunity.html [6 September 2008] Olympic Organization. 2008. IOC President Remarks to the 120th IOC Session. [Online] Available: http://www.olympic.org/uk/games/beijing/full_story_uk.asp?id=2772 [6 September 2008] Read More