Expanding to China Essay

Naturally, when there are great gains to be had, there are great risks. A lack of understanding in cultural protocol is a commonly occurring pitfall for foreign, new to market business endeavors. Also, even positives such as China’s size, can commonly be a double edge sword. It is imperative for companies considering international expansion to create a solid entry to market strategy, which evaluates if the firm has any potential in achieve gains in a foreign marketplace.

This paper presents the results of the authors’ detailed research into competition between multinationals and local Chinese companies in 10 industries over the past five years. They conclude that local companies are now threatening multinationals’ plans to conquer the China market. They analyse this new competitive game in terms of a dynamic battle of competencies. Multinationals start off with better industry-specific technology and know-how, and a higher level of competence in key functions like marketing and financial management. Chinese companies enjoy a better understanding of the local market, lower

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

Selection and performance management programs that are designed for organizations that have expanded their U.S. workplace to other countries must be designed to take in many other considerations that normally wouldn’t make a difference if all the employees were from the same origin. Expatriate employees and their families should be assisted to help with adjusting to their new culture. Performance management and selection programs should be designed to incorporate the differences in ethical and cultural backgrounds that match the employees and or applicants who are overseas. This paper further examines what is necessary for selection and performance management programs for a U.S. based organization that is expanding overseas to China.

Determining the most important factors to consider when doing business in China can be tricky. There are a number of things to consider starting with the Chinese culture. Chinese expect foreign businesses to be sensitive to their culture. They do not expect them to be fluent in the Mandarin language but they are more open to those who try. Chinese people are very are very loyal to their families and place high value on their history. Relationships take very high priority when attempting to forge new ventures in China. The Chinese are protective of their culture and work hard to maintain it’s integrity; therefore, they expect to take as much time that is needed to

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

The belief systems that have been given rise to in China are religions thought out for thousands of years. All of them are different from each other, but also interlaced. Many scholars and thinkers spent a whole life devoted to further developing a way of thinking. Certain religions a take small part from others, and in the case of Neo- Confucianism, it takes whole parts and fuses them together. Chinese people in history have shown their devotion to religion. They have also shown their lack of interest in corresponding with other nations. There are many reasons why they have chosen not to be influenced by the west, especially when it comes to religion. Even though Chinese people

Subsequently, this strategy will create an enabling environment that is biased in hiring process like in the case of the Maldives, where foreigners were given job opportunities because they had the right attitude yet, the natives had more outstanding qualifications for some of the jobs but they were denied the opportunities (Boella and Goss-Turner, 2013). Therefore, the organization should reduce the act of employing foreigners in its different branches across the world and focus on the natives of the given states dwelling more on their qualifications rather than their attitudes. This would lead to employees feeling more comfortable in their work environment and having a workforce that understands the culture the business is established in as well as being well skilled and educated in their

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

According to Yuan (2005), “Guanxi” refers to a personal relationship with materialistic aims. A contrast from Western culture, Chinese businessmen favor “guanxi” over the rules of law and will generally pursue such material gains relentlessly. It is crucial that foreign businesses are aware of the importance of this term “guanxi” in order to maintain their personal relationships with government officers or partners. The Chinese business is a type of organization developed from wealth ventures by overseas Chinese entrepreneurs. Such single person dominating organization structures are basic with limited operative functions and are successful in niche industries that are less complicated to operate for example, property, trading and basic manufacturing industries. Undoubtedly, Chinese are well-known for their hard working ethic and close family relationships and therefore that contributed to the extensive network of Chinese businesses in the Asia pacific region for example, Hong Kong and Taiwan. There have been extensive changes in Chinese business systems whereby its second generations are now educated in western countries with more reformative mentalities as compared to their older generations (Chen,

For multinational companies, China’s market has started to come of age. Despite the opportunities along with China’s WTO entry and opening up, doing business in China remains very challenging at the operational level for MNCs.

China’s institutional environment comprises of important factors such as Chinese culture, its governmental system, and non-governmental organizations (Gao, n.d). Conducting business in an international market can bring increased burdens and entail many strategies to overcome obstacles that trading nations may face in international business. In the Chinese culture, Guanxi is a Chinese concept that can be most effective in conducting business successfully in China. China takes much pride in doing

Even since the dramatic post-1949 changes in China regarding the role of women, China has remained paternalistic in it's attitudes and social

Nowadays, China, the emerging market in Asia, contains huge business opportunities. At the same time, because of the different culture and history, the characteristics of Chinese society including its source of power, social order, and solidarity, is actually very different from the West. The big difference is that China is a relationship-oriented society. For this reason, how can Westerner adapt the ways of doing business in China? Here are three recommendations for the entrepreneurs that want to enter the Chinese market.

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.