Market Research Essay

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

Realizing partnering with the China utmost powerful city played an enormous role in GM's success. The Chinese understand the assurance of currency obliges as a powerful lure. China's strategic amelioration method entail inviting foreign investors, segment of profits to foreign businesses, and preserve constricted controls while possessing the currency or revenue to remain within china. Immeasurable industry plants now invented various products in China and circulating through the world. Dunne, R. R., & Dunne, M. (2011) Revenues from trades and its entirety such as: Nike golf clubs, iPhones, and Christmas tree ornaments. Assisting in China’s accumulation foreign exchange fortune. At the physical year end of 2010, the bank in China had over 2,800,000,000,000.00 in foreign reserves. Adjacent to three trillion dollars. In comparison, foreign reserve pass on driving force, Germany 217 billion and the United States holds $135 billion. Although, there were drawbacks in regards to having negative effects after several decades, General Motors decided to relocate the plant to Mexico. Causing high impact on local culture, enormous impact on the United States, thousands of people unemployed and on unemployment. Outsourcing employment and revenue has affected the U.S. stratification results in inequality when resources, opportunities and privileges were revolted based on position in society

Establish guidelines for researching and gathering information and work with the staff to gather and evaluate the data.

The legal system is another issue to be considered when doing business in China because it is still viewed as being in a developing stage. Contracts, for example, are highly influenced by this difference. In the Chinese culture, contracts describe how relationships will be developed whereas in the United States, the contract is a binding agreement that spells out the specific terms, conditions and expectations from each party involved. As Company X pursues the possibility of expanding business to China, it must understand that the Chinese business culture does not place as much emphasis on the binding force of a written contract.

In the few recent years, China has replaced United State to become the world largest economy. This Economic situation has opened an enormous number of opportunities for most industries to expand their operation from domestic market to international market. Shanghai, which is the China’s largest commercial and industrial city, focuses on 6 major industries which are information technology, automobile, large-scale electromechanical equipment, petrochemicals, heavy manufacturing and biopharmaceutical products (http://en.people.cn/200207/20/eng20020720_100055.shtml). With the virtually unlimited well-educated labour resources and the unique international location, Shanghai is

Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.

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

The message is clear: Multinationals must factor in the existence of robust local competition, while considering the new opportunities that have opened up as a result of China’s WTO membership. To understand the way competition between multinationals and local champions is evolving and to pinpoint the keys to success, we traced the evolution of competition in China in 10 industries over the last 10 years.2 We conducted more than 100 interviews with dozens of leading companies operating in China, both multinationals and locals, and reviewed thousands of pages of secondary data. The picture of competition that emerged from our research can best be described not in terms of traditional market positioning, but as a battle of competencies between multinationals and local players.

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.

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

“Guanxi” derives from Confucianism which greatly values interpersonal relations, but is utilized in business negotiations, particularly with foreigners. Due to China’s history of betrayal by other countries, the Chinese have a fear of being taken advantage of by untrustworthy foreigners. To prevent any future betrayal, the Chinese use the negotiating tactic “guanxi” to ensure a superior status versus the dependent in their business or political relationship.

This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.

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.

Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were