The Difference in Conducting Business and Marketing Activities between China and the United States - Essay Example

Business Culture In today’s global economy, most corporate companies must do business globally. The U.S and China are two different countries that have completely different cultures. In order to conduct business the two countries should have an interest and an understanding of each other cultures. Understanding cultural difference is important in building lasting relationships with business partners. By understanding the differences in culture and adapting the different styles accordingly, individuals can gain trust of other people in different foreign markets and also avoid offending potential customers as well as grow business. Different cultures have different values in addition, what might be polite in one culture could mean something different in another culture. China has a rich history in culture that has made the business environment that is different from the U.S business culture ( Feldman, 18). There is a great increase in the interdependence between countries and this has made culture to be in the forefront especially when marketing products. Culture is the social transmission of behavior patterns beliefs and values of a particular community. Culture greatly influences how people in a specific community behave, communicate, think, and influences how people do certain activities. Therefore, culture influences how a business negotiation takes place, as they are distinct. Chinese business culture has three components the first involves the influence of culture in the nation called the People’s Republic of China. The term refers to the influence the socialistic government has on trade as well as negotiations. China has a well-planned legal framework, economic system, and technology improvements. In addition, the government enjoys the privileges, right, and interests of most of the big organizations. Moreover, the Chinese have a cultural component known as Confucianism and Taoism, which is about the importance of relationships, families, respect for the elderly and the hierarchy as well as the avoidance of conflict. In the individualistic American business culture, the most important thing is the immediate returns. This is what counts and managers seek to make good deals so they can make commissions and compensations. They value networking and information and are always looking for knowledge to better their ideas so that they can become competitive in the market. To have successful cross-cultural marketing, it is important to understand first cultural differences. This is because consumers have grown in different cultures and are used to them. Consequently, they respond to advertisements that resonate with their cultures. It is also vital for businesspersons to understand the sensitivity of advertising appeals of a society. These appeals are the particular approaches that marketers use to communicate their products and how they will satisfy customer needs. In addition, research shows that cultural values are the core of advertising messages. This is because advertising is a mirror that reflects different cultures of different societies. Advertising in China is viewed to have more of utilitarian appeals that concentrate on better standards of living. On the other hand, American Ads have more comparative appeals and less emotional appeals. According to Hofstede, five dimensions of culture help understand culture. One of the dimensions is the power distance that refers to how power is distributed. Countries with high power distance societies, power lies with the leaders the high the level an individual is in the hierarchy, the higher the respect. For example, those in the high management levels are considered better than everyone else. Hofstede assigned China as a power distance of 80 while that of the U.S he gave a ranking of 40. This is because in China, there are teachings that emphasize a strict social order. Those holding high positions get respect, obedience, and relevance. On the other hand, the U.S believes that all men are equal and the treatment should be the same. The second dimension is the uncertainty avoidance, which is how a society deals with uncertainty and the measures they take to avoid it. China is a high uncertain avoidance country because they do not like risks and prefers being in the picture and knowing what is going on. This is because at some point China had difficult political and government instability thus contributing their preference of being able to predict their lives. The U.S is a low uncertainty avoidance country because they do not fear risks and do not mind not knowing what will happen because they can deal with whatever challenge they face. In addition, they do not like many rules and prefer having some degree of freedom. The U.S culture allows people to be open to new ideas, thoughts, and beliefs. It is okay for people to freely mingle, share, and implement ideas. The third dimension is the individualism-collectivism, which is the relationship between individuals and other groups. In societies that are individualistic, people always look out for themselves and want the best for themselves. In societies that practice collectivism, people always belong to a group that consists of family members, extended families, and relationships. China practices high collectivism because their communist ideals and the emphasis of people working together in teams. The U.S has a high rank of individualism as they have a culture where personal achievements and success demand respect (Lee, 26). In addition, American children are taught to be independent from an early age. This practice is carried to adulthood. The fourth dimension is the masculinity-femininity, this is how the masculine values like aggressiveness, or achievements are perceived in the society. In addition, it is how roles are distributed in the society. The U.S is a competitive society and the female have a place in the society. The female compete with the men. The female have managerial positions just like the men. On the other hand, in China, the men are caring and modest and respect women the women are usually below the men. They do not compete with men and do not bully to get result. Finally, the long-term orientation is how a society values perseverance as well as long term rewards. China has a long-term orientation since they are never in a hurry to do things. They can wait for longer periods before trusting people with their business. The United States have a short-term orientation where they want things done almost immediately. They prefer to close business deals fast and in an effective way (Feldman, 45). The relationship between China and the U.S is becoming increasingly important for all nations and this is because of their high economies. In china, it is important to have good relations with them to conduct business. They develop relationships with the people they want to buy and sell from and take time to learn and know their prospect clients. They prefer face-to-face interactions so they can get to more about the people who are interested in doing business with them. The U.S value transactions and to them economies takes the front row compared to relationships. The U.S has an aggressive style of communicating with people. They tend to be more outspoken and eloquent. On the other hand, the Chinese are reserved and quiet in business settings. They prefer to have time to go through a contract, talk about the risks, benefits, and challenges, as well as consult with other parties. It is also difficult to obtain the information they seek for example feedback and rejections. The Americans are very aggressive and their style of doing business is unlikely to be seen as unprofessional. In china, it is a good culture to have entertainment, which is an integral part of the business. It is appropriate to invite potential partners, employees to share dinner as people get to know each other more, and this is regarded as an informal meeting. A dinner is the best way to deepen the relationship as well as build trust. Individuals can use the chance to get information or feedback that an individual cannot obtain during the normal working day or work setting. Moreover, a social outing or dinner can be used as an opportunity to follow up on unclosed business deals. Additionally, the Chinese regard highly gifts. When an individual wants to be business partners with the Chinese, they ought to consider buying gifts for them. They value gifts and see them as a sign of care and respect, as both are important aspects of business culture in China. When presenting a gift in china it should be private and individuals need to present it as friendship gift other than business. When gifting an organization, it should be presented to the head of the organization. Individuals should avoid gifts like clocks and handkerchiefs that symbolize death. In the U.S, giving out gifts and having dinner is not highly regarded and is discouraged by the law because it is perceived to be a form of bribery. Individuals might take potential clients out for dinner to discuss business. Americans are friendly and will even great people from a distance. The U.S prefers working with contracts, because they assure that the people involved in it conduct themselves according to the signed agreement that they renew after a certain period. Contracts are very important, as they believe that if the service they need is for a short time then there is no need to employ permanently. Contracts are written ahead of time to save on time. Conversely, in China, contracts are less important and businesspersons may not sign contracts and can operate on a handshake basis. This is because the Chinese value relationships more. The success of a business deal will depend on the relationship created. In addition, even if a contract is signed that does not mean that the deal begins immediately. The U.S market does not believe in conferences and exhibitions that are perceived as a waste of time and resources. However, in china, most industries and market sectors participate in exhibitions and conferences. These events are important for persons who would want to do business in China. It is an excellent way of making the first contact with customers and a good opportunity to create a good relationship with potential customers. They also help buyers to compare local and international markets. It is providing customers with the chance to ask questions about the advantage of products and establishing face-face interactions with potential clients. The United States use online media effectively to market and promote their goods and services. They are excellent at using their websites to market and sell their goods. Their websites tell customers exactly what they offer as well as the benefits of the products. On the other hand, the Chinese are not so keen at using online media. Chinese companies tell people about their people and the industry they are in but their websites do not exactly explain what they do. Companies that use online media communication have a better advantage as companies are able to advertise and promote their products effectively. In addition when doing business negotiations, the Chinese prefer the senior members in the society to do the business negotiations this is because of in China the elders are highly respected. In the event that young persons are sent to do business negotiations, it is regarded as an insult and they will not be taken seriously. The United States on the other hand believe that as long as an individual can deliver then they do not have a problem. To them increasing sales, meeting the needs of the consumer as well as meeting the objectives of the organization is what matters most. When meeting for the first time to do business, it is a good idea to carry business cards, as the Chinese prefer exchanging business cards. The shaking of hands takes place with the most senior members first then the exchange of the business cards. The business cards should be accepted with both hands and looked at carefully. Moreover, presentations of the different companies take place during the first meeting. Individuals should keep an eye contact as people who avoid eye contact are perceived as untrustworthy. They have long attention span therefore do not interrupt the presenter with questions unlike the U.S who keep on asking questions and interrupting the speaker. The Chinese have strong work ethics and discipline. They also have a strong character of endurance especially in tough circumstances. This character probably comes from Mao Zedong’s endurance during the time of the long march that made him gain respect from the Chinese people (Alon, 23). The Americans think of talent as a way of bringing success not endurance. Marketers in the United States are more aware of the marketing concepts and the strategies to use to beat competition. They are aggressive and plan on the marketing tools to use to become successful and make more sales. On the other hand, in China marketing is less widely recognized as a tool to improve sales and create awareness for their products. This is because, they view marketing as a sales department task and viewed by business to be having the four P’s of marketing only. Sometimes the role of marketing is seen to be responsible for taking care of the company logos and brochures. Culture strongly influences personal style of the people negotiating to close a sale. Americans have an informal culture where they address each other by their first names while the Chinese address each other in the formal way, as it is a sign of respect. It is important in China to call people by their titles. People who know each other may address each other by their names for example friends and spouses. In addition, the Chinese are never in a hurry while doing business while the Americans have this believe that time is precious therefore rush to close the deal. During introductions, the Americans prefer being called by their first names, they also like direct eye contact as well as a firm handshake from a client or partner. They believe that a weak handshake is a sign of weakness. In china, the dress code for doing business is formal and conservative. People should wear suits the first time they are meeting the clients. Women should wear a high neckline and should avoid high heels just in case they make them look taller than their host does. On the other hand, in the United States, they prefer wearing casual rather than suits or proper business attire. When arriving for a business meeting in the United States, individuals need to be punctual or come few minutes earlier. The act of coming late is seen as a sign of rudeness or a high level of disorganization. They go straight to the point and are not reserved about their own personal opinions and express themselves freely including providing their input on important decisions. The managers tend to delegate most of the work and it is common for the employees to question the superiors. Americans always think about the future and take risks to achieve their goals. It the U.S environment, money is equal to power and status in the society. Since English is not a language spoken by the Chinese it is necessary for businessmen who are English speakers to speak slowly as the Chinese do not like asking people to repeat themselves as it is considered impolite. If they do not understand, what the speaker is saying they will continue to listen letting the ideas and thoughts pass by. On the other hand, the U.S are open and are free to express themselves on matters they do not understand and even give ideas on areas where they feel there should be some improvements. China is on the verge of beating the U.S economy. This is because it possesses a huge market potential that few companies can compete. Conversely, the United States has a great economy, technology, and finances. Therefore the U.S need to work towards having the consumer market the Chinese have while China needs to work towards having capital, technology among other tools that the U.S offers. Despite the many challenges the two countries have, business interactions will continue to take place. In the U.S it is easy for the marketing and sales manager to promote goods and services this is because most of them are learned and have degrees from colleges and universities while in China most employees do not have certificates or degrees but are doing their roles and are good at it because of their hands on experience. In addition, U.S companies have strategic plans for their businesses with guiding principles, vision and mission statements. They are always thinking on how to expand and develop businesses. However, in china, some businesspersons have generated their business plan but some do not. Most of the sales and marketing managers operate according to their superiors instructions. Lastly, every country has its own way of communicating and a unique way of conducting business. In order to do business in the U.S or China it is important to adapt to the different cultures the two countries have if they want to remain relevant and competitive. In addition, businesspersons need to understand the different cultures before adapting. If Americans want to do business in china, then they need to learn the Chinese language and this would be appreciated. The world is changing at an alarming rate in different parts of the world. Therefore, marketers should be on the forefront to find better ways to satisfy their customers. They should also find ways to harness technology to be able to be competitive in the market. In conclusion, it is important to have negotiation strategies to persuade the thoughts of consumers so they can begin to use a company’s goods and services. For example, the U.S use facts to persuade customers to use their products while in China, the mutual relationship that negotiators have with the customers is what will close the deal. It is therefore important to have business negotiations after a deep research has been done as well as understanding the opponent’s culture. It is important to first understand a culture then communicate and negotiate on a company’s products and services. This strategy can help individuals who want to do business in foreign countries. Works Cited Alon, Ilan. Chinese Culture, Organizational Behavior, and International Business Management. Westport, Conn.: Praeger, 2003. Print. Feldman, Steven P. Trouble in the Middle: American-Chinese Business Relations, Culture, Conflict, and Ethics. New York: Routledge, 2013. Print. Lee, Yueh. Personality and Person Perception across Cultures. Mahwah, N.J.: L. Erlbaum Associates, 1999. Print. Read More