Case Study: Guanxi in Jeopardy

Cultural differences are apparent from one group of people to another. Culture is based on many things that are passed on from one generation to the next. Most of the time people take for granted their language, beliefs, and values. When it comes the cultural differences of people there is no right or wrong. People should be aware of others culture and respect the differences that are between them. The United States and China are two very large countries that have cultures that are well known through out the world. There are many differences between the United States and China, but there are many contributing factors that shape the cultures of these two countries.

The differences between Chinese Culture and American Culture are immense. Both cultures have very different values and norms, and these differences come out within the negotiation between Buckeye Glass Company and the Xia Xian Glass Factory. Both parties during this negotiation had different objectives and ways to get what they wanted out of the proposed joint venture.

When decisions are necessary, especially risky ones, Americans do things differently than Chinese people do. Americans like to get involved and, if possible, make the decisions themselves. They are less likely to avoid the situation for fear of embarrassment or uncertainty. If they are uneasy about their authority to make a decision, they are content to defer or delegate. The Chinese are more likely to make decisions in groups where many people participate. This is somethine to consider when doing business with the Chinese because the way we would handle things in America might make them feel slighted or

The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the

This process has more significance in most countries except the Unites States. The approach in the U.S. is to get down to business straight away without wasting too much time on people. This is in stark contrast to the process in China where the focus is on building “Guanxi”, that is, the intricate and omnipresent network of personal relations. The U.S. approach can be a huge problem when doing business with China. The American efficiency interferes with the patient development of a mutually trusting relationship – the very basis of an Asian business agreement. This is what happened in the case study. Mr. Smith had done his research and was aware about the Chinese business methodology, but he did not think it was important to implement it. He was well advised by Mr. Tang. Mr. Tang, even though pointed out the significant features of the “American” and the “Chinese” way of doing business, did not stress enough to make Mr. Smith understand its significance. Mr. Tang also jeopardized his relationship with Mrs. Ming whom he had known for many years by not disclosing that the supplier was not a direct supplier.

The United States and China aspire to command the world economy, but their lifestyle and standpoints look like east and west. When comparing the U.S. and China in Hofstede 6 dimensions model, there were four main dimensions that are strikingly distinctive. These dimensions include individualism, power distance, long-term orientation, and indulgence. Recognizing cultural differences is the first step towards understanding each other. The difference between the United States and China are pronounced, and they merit rigorous examination.

This year is my forth year that I has been studying in the United State. I’m already used to the U.S. culture and the U.S. living style. So in general, I didn’t experience any culture shock after I got here. If I had any culture shock, it’s probably three years ago. I couldn’t remember any of them. However I do have some thoughts about the differences between the U.S. and China after four years of studying in the United States.

As we all known, Sony and Matsushita are two of the largest consumer electronic makers in Japan or even in the world. And in this reading, it points out the different strategies Sony and Matsushita use when they were facing the fierce competition in China ----- Matushita was accelerating its pace on stretching the supply chain in China while Sony unexpectedly decided to shift some of its manufacturing business in China back to Japan. In this article, I will discuss the reasons that lead them to make different decision as well as analysize the advantages and the disadvantages of their decision.

GM has a dreadful strategic alliance with Daewoo Company (GM Daewoo) in South Korea as far as the Asian Pacific market concerned like the case indicated. GM Daewoo has started to increase sales, yet, it needs way to go. GM Daewoo is the low cost production base with its facilities in South Korea and Vietnam for some GM brands such as Hummer and Saturn and Opel of European Operations. The subsidiary made some moves to expand its operations in Europe by purchasing former Uzbekistan and Romania plants of Daewoo and Polish car maker Fabryka Samochodów Osobowych (FSO) (GM Daewo Company overview, Hoovers website, 2010, December 5).

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

Royal Philips NV and Matsushita (owner of the Panasonic brand among others) are two of the world’s biggest electronics multinationals. After successfully building their global empires in the early twentieth century, they have both suffered financially in recent decades. It is therefore interesting to look at why this has happened and what their future prospects are.

For the story the Great Wall of China is a series fortifications in northern China that was built to protect the northern borders of the Chinese Empire against the intrusion of various nomadic groups. The company has about 30 subsidiaries and 38,000 employees working for them. Taking a look at the products Great Wall Motors has to offer, it includes three categories of “Haval SUV”, “Voleex Sedan” and “Wingle Pickup”. Great Wall Motor has been winning a few awards. It has been listed in the “Forbes Top 100 Chinese Enterprises” twice, had gain honours of "China 's 500 Most Valuable Brands", "Most Valuable Listed Automobile Company" and "No. 1 of Top 10 Listed Chinese Automobile Companies".

Lenovo Group Ltd. (Lenovo) is a Chinese multinational technology corporation that founded in Beijing in 1984. Specifically, Lenovo is one of the top enterprises that produces and sells consumer electronics and computer hardware, with a focus on producing personal computer (PC). Currently, the headquarter of Lenovo is in Beijing, China, with a second headquarter that located in Morrisville, North Carolina, United States. As a multinational enterprise, Lenovo currently have operations in more than sixty countries and has its products sold almost all over the world.1 Becoming a multinational enterprise especially making it to the top of the industry is not an easy thing for any company due to numerous predictable and unforeseen challenges. However, Lenovo has successfully expanded its business and reached to the top. Therefore, the present paper aims to analyze Lenovo’s operational/managerial strategies and provide a better sense of what has Lenovo done for reaching to the current position in the global market.

Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.

For international business strategy, Hill and Jones (2004) suggested that there is four basic components of strategy development need to be addressed by a firm in order to succeed in foreign markets. These components are: ¡¥distinctive competence¡¦, ¡¥scope of operations¡¦, ¡¥resource deployment¡¦, and ¡¥synergy¡¦. By applying the theory, it is revealed that Whirlpool¡¦s distinctive competence is its brand name ¡V Whirlpool, the world¡¦s largest white-goods manufacturer. For the scope of operations, Whirlpool is specialised in broad middle market niche of white-goods products. In terms of resource deployment, Whirlpool allocates the resources equally to its three product lines. As far as synergy concern, due to the poor business performance of Bauknecht and Ignis, Whirlpool is not benefited in whole.