Doing Business In China Summary

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

Doing business in China may require more patience and understanding the culture before adventuring in taking a foreign assignment. There are several factors that need to be looked at before taking the assignment, knowledge, skills, and culture understanding, knowing how to negotiate and knowing when to except the idea. There are traditions and customs that China has that have to be known before anyone conducting business in China needs to know. China is based on an old system of proper manners and etiquette when doing business. Doing business in China you need to know their customs and know how to communicate effectively but there are more things that need to be looked at such as political differences, building trust and respecting Chinese culture. As part of this paper I will answer several questions about my assumptions about China, adjusting my behavior on a business trip to China, Chinese managers running a business in the United States and if I would be less interested in taking a foreign assignment.

By consulting the above graphs and charts it can be concluded that Pepsi has been a strong competitor to Coke and that throughout history they have been performing at comparable rates. Each has a similar background and customer base, but there are some differences between the two companies and their individual performance overall. It is clear that Pepsi holds a major stake in the market and is somewhat ahead of Coca-Cola in market share and productivity. Although both companies appear to be competing neck-to-neck Pepsi appears to be performing at a slightly higher rate than Coke, despite the popularity of both. Coke is wildly popular and is considered an American institution, but many seek different tastes and this is where Pepsi has been taking some of the market share as some consumers opt for Pepsi as their choice of beverage.

Due to the large increase in globalization, many organizations relay on international business for competitive advantages. However, offshoring a business has never been easy especially if there are a lot of cultural, environmental and economical differences. China’s opening up to the world has not only made China’s economy stronger but it has also given many advantages to the outside world as well. Some of those advantages include cheap labor cost, risk sharing, economies of scale and less operational cost but to achieve these advantages it may takes plenty of time to observe new location, cultural training, and understanding of international business. As written in the article, “Red China, Red Tape: How to Start a Business There,” China

The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed

China, although a communist dictatorship, is expected to become the globe’s largest economy by the year 2030 (McFarlane, 2008). A large competent labor force, strong system of education, entrepreneurial culture, and massive government infrastructure investments allows China to stake its super power claim in the global economy (McFarlane, 2008). To do business with China, one must understand the country’s history and context (McFarlane, 2008, p. 2). China

In the battle of soda wars, there have always been two, Coke and Pepsi. This report takes the two and separates them apart to determine several factors between the two. First of all we had to define PepsiCo and Coca-Cola Companies as they are both global companies and with PepsiCo, they are bigger than just beverages. This report just looks at beverages and North American business side of each company. Next, how important is Coke important to Coca-Cola’s business and Pepsi to PepsiCo’s business. With Coke being an exclusive beverage company, it is more important to Coca-Cola’s success. However, Pepsi is still important to PepsiCo. Lastly, does demographics play a factor on what beverage is preferred? As in the article that is mentioned later, the locals play a big part in the success of the drink. If it isn’t successful locally, it will never be successful. Also, let’s not forget cost. As with anything that is purchased there is always a cost. Beverages do play a huge part in what people buy.

In addition, also required are: “imagination, secrecy, bribes and a facility with the law that could recast otherwise illegal ventures into businesses that fit some illegal construct acceptable to those policing the economy.” (Dickson, p. 25) For foreigners already doing business in China, or competing against it, one of the most difficult things is the loose view that Chinese businesses have of agreements, and their often blatant disregard for legality. But Chinese businesses grew up in an environment in which extra-legality was the only option. Moreover, over time two groups, who were not historically aligned, became linked. On the one side was an aspiring middle and business class that needed money and property rights to conduct business. On the other were state and Communist Party officials who were ideologically wired against business and private property. Today, there is little separation between the two. Even as regulators, “the interests of officials are so complex and conflicted that reining in the private sector for any reason also slashes the fortunes of those who run the state.”(Dickson, p.30) Obviously, corruption remains a significant issue and is persistent at so many levels. It is widely known, for example, that purchasing departments typically have a ‘special

Partially due to decreasing interest in colas by consumers, PepsiCo faces increased competition in the fight for market share in the cola industry. Pepsi and Coke have gone head to head for years, with Dr Pepper and other smaller brands running a distant third, but with a shrinking consumer base, companies are left to fight over the remaining consumers. PepsiCo has usually played a close second throughout the years, but continuing to invest in a dwindling industry is no way to achieve sustainable profitability. Increased investment would be a wasted effort mainly because of the brand recognition and loyalty that Coca-Cola enjoys. While Pepsi does have its own brand recognition and loyal customers, it is not to the same degree that it is for Coke. In the fight for the remaining cola consumers, it is not likely that Pepsi will win out after being in second

Situation Analysis: Soft drinks are a multibillion dollar global commodity in the 21st century Coke alone produces over 400 brands in 250 countries, serving an average of 1.5 billion servings of some type of beverage per day (Warner, 2005). However, in the last decade or so, soft drink sales

These two-company’s economic characteristic include their market size and growth rate from the early 2000’s to 2010. Coke and Pepsi have struggled for years in the carbonated and non-alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants have begun relying on new product flavors and looking to noncarbonated beverages for growth.” (Murry, 2006). For instance, Coke boasts in the advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products. Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an on-going rivalry when marketing the high-energy beverages.

Coke and Pepsi are the main pieces of this market. They struggle for over a century to conquer the number one position in the market, competing fiercely in last few years, following each one's strategic decisions.

one are the days when companies looked at China as a monolithic land of 1 billion potential customers. Companies are now focusing on how to capture small segments of China’s giant market, and none of these segments is as attractive or as full of potential as the country’s rapidly growing—and multifaceted—middle class. As China’s economy continues to grow, more people will migrate to China’s booming metropolises to find better-paying jobs. These working consumers, once among the country’s poorest, will steadily climb

They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate.

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.