The business culture reflects how companies or organizations conduct its business, the extent of autonomy and freedom being practiced in making decisions, development of new ideas, flow of power and information, and dedication of the employee towards achieving the…
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Culture is inherent in a society, and that culture affects and influences the way that particular society conducts its business( Henry 1999 ).
Due to the advent of globalization, companies have sought overseas operations to expand their market as well as gain from trade agreements. More so, the availability of cheap labor has attracted multinationals to invest in Southeast Asia ( Philippines, Thailand, Indonesia), especially in China. However, issues in organizational behavior always resurface as western methods of management are fitted into Asian culture. In order to prevent this misunderstanding, it would be best to identify critical issues in business culture. An important model in understanding business culture was developed by Geert Hofstede. He firmly believed that a misunderstanding of business culture can have tragic consequences for companies (which was the case of Wal-Mart ) resulting to great financial loss . Hofstede’s statement is clear “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster”.
The case which I would present is about the reflections of a consultant of one of Ohio’s oldest manufacturer of metal parts. The American business owner established a small business in China along with a Chinese business partner. The case is not really about total failure of a western business in China, rather, a few adjustments have to be made to be able to survive within the Chinese business culture.
One problem that was specifically observed by westerners is the Chinese optimist attitude of “ NO Problem” which seems refreshing to a westerner. However, the westerner only realizes later that there is indeed a presence of seemingly insurmountable problems which should be resolved later on. To be more specific :
One of the first American business owners whom the Cunningham’s met in Changzhou warned them to expect that at the
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My worldview probably comes closest to the deep ecology worldview even though I was raised in both the typical western worldview and the biblical worldview. The deep ecology worldview looks at the natural world as a group of systems. Each system functions for its own purpose, but also as part of a larger whole.
However, the differences in culture can be a serious impediment to successful business transactions. In this regard, misconstruing a culture can lead to a collapse of the negotiations during a transaction, which is a failure in business. Nevertheless, business people over the world know that the underlying factor to successful business is communication and knowledge of the differences in cultures, which affect transaction of business.
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