The Joint Venture With A Chinese Motor Vehicle Component Company

2753 Words Apr 15th, 2015 12 Pages
Here is the report you authorized in March identifying reasons why the joint venture with a Chinese motor vehicle component company was unsuccessful and recommending ways to improve cross-cultural communication.

As you know, even though both companies had mutual incentive to establish a joint venture, arriving to an agreement was unsuccessful. After analyzing the notes supplied by Mr. Jones and Mr. Wang I have come to the conclusion that several major cultural differences were the source of the communication breakdown.

Major differences between both American and Chinese cultures presented themselves throughout the negotiation process and greatly contributed to the failure of reaching an agreement. The main differences causing miscommunication between the cultures are that America is a monochronic culture and uses direct communication in a low context manner. Alternatively, China is a polychronic culture communicating in an indirect fashion and in a high context manner.

A short-term solution to these communication differences is to implement a more structured selection process, which would focus on finding an individual for the negotiation position who is culturally aware, patient and flexible. A long-term strategy would be to implement a pre-departure seminar where the chosen negotiator is introduced to the business partner’s culture, including common business practices, communication skills and international negotiation skills.

The information from this report came…
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