American Business in China Research Assignment
You are the Director of Marketing for a small American company (WERUS), specializing in the manufacture and sale of environmentally-friendly technology used by heavy industry (such as manufacturing plants). Your company's technology has been used extensively in the US, Western Europe, and Australia to reduce pollution emitted by manufacturing plants (such as automobile manufacturers, power plants, and so on). The company was founded by a devout Christian, and many (if not most) of the company's 250 employees are associated with the Christian faith.
Given the recent success, the CEO has declared a major new initiative to sell the company's products in China (while still maintaining all manufacturing in the US). Unlike the competitors, your company's products are designed, built, and distributed from your Oklahoma facility. Some of your company's employees will have to live and work in China, setting up distribution and implementation teams, interacting with government regulations, and handling product support.
The CEO has recently called on you to develop a project plan for the new venture. Your job will be to produce a paper summarizing the opportunities and challenges associated with offering your technology within the Chinese market. Paper must be at least 15 pages in length, presenting your findings to his leadership team. The paper must specifically address each of the following areas in order (each with its own section):
Information Sources: Where can information about the Chinese culture be found?
Staffing: How will staffing be handled and what are the implications for communication?
Verbal Communication: What do WERUS managers need to know about business communication with Chinese counterparts?
Written Communication: What do WERUS managers need to know about written communication with Chinese counterparts?
Communication Guidelines: What are some general guidelines that WERUS managers must understand to maintain effective communication overall? Discuss opportunities and challenges associated with communication channels and styles.
Cultural Dimensions: Discuss the four cultural dimensions evident in the Chinese market.
Stereotyping: Discuss how the potential stereotypes associated with WERUS personnel (from both the US and China) can be addressed.
Authority: Discuss ramifications for team building and employee relations based on perceptions of authority and power.
Negotiation: Discuss implications for negotiation and problem solving.
Legal Considerations: Describe differences in legal environments between the US and China, including ramifications for conflict resolution and copyright/patent protection.
Strategy: Summarize key elements of organizational structure and culture that must be addressed by WERUS' strategy to enter the Chinese market.
Biblical Worldview: Discuss potential challenges in communicating and relating to others based on the likely differences between a Chinese worldview (mainly the influences of Taoism, Confucianism, Buddhism) and a biblical worldview.
Should offer responses that convey understanding of, and ability to apply the concepts and insight offered during the course. In doing so, should develop a paper of at least 15 pages in length (not including title page, abstract, appendices, or references), and should leverage content from the assigned readings, supplemental readings of the student's choosing (including peer-reviewed sources), experiences, and class discussions. The flow of the 12 items listed above intentionally mirrors the flow of the Varner & Beamer text, providing a helpful framework to guide the student's efforts.
Papers should be double-spaced, use 12-point font, and utilize one-inch margins. Students must utilize and cite at least 7 outside sources, while following APA formatting guidelines.
Convey an extensive understanding of assigned readings in developing each section of the paper. There is an intentional connection between each of the 12 required elements and the assigned chapter readings in the Varner & Beamer text.
Provide a sufficient level of depth and content in responding to each section.
Provide a clear and cogent treatment of the required content.
Provide a response that is well-written and presented with excellent grammar and formatting.
Provide a slide deck that is professional in appearance and suitable for presentation within an executive meeting.
American Business in China
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Introduction
In the business realm, there are vast changes where companies have to come up with strategies to maneuver the challenges and take advantages of the opportunities that come up. Most of the companies as they expand tend to seek markets in the local and internationally. This requires that managers have the right skills to conquer the various markets that the company ventures into. As a director, it is crucial that the one is able to understand the various aspects of the market that company is getting into. Aspects such as communication approaches between the different countries and cultures, are crucial as they define the success of the processes involved in passing information. The staffing processes between the different countries have also too be reviewed to make sure that the work force is satisfied (Li, 2012). This is an aspect that is closely associated with the differences in the culture. there are also other aspects that have be considered such as negotiations tactics and processes between the two countries, legal considerations, cultural dimensions, challenges and the biblical implications of the various business processes (Nowak & Dong, 2017). All of this are processes that influence the success the company will have going forward in the new market. These are specifically important considering that the American culture when compared to the Chinese culture are quite different even at the very basic levels (King & Mallesons, 2012). Understanding these factors is paramount, as they lay out the ground work for the success between the two countries. It is with this understanding the directors are able to develop strategies to venture into the Chinese market despite the fact that, there is a big difference between the American culture and the Chinese culture. managers at WERUS need to understand the basic precepts that are involved when it comes to doing business in the Chinese market. other than the basics of the business processes, there is also the ethical background that is crucial for the success of the company (Thompson, 2017). This is too mean that the company culture has to be in tune with aspect of the ethical foundations that reflect on the Christian values. It is the Christian values that the company was first based on at the start of the business venture. These should be the guide regardless of the market that company is venturing into.
Sourcing Market Information
When researching the market, it is crucial that information acquired is from the most reliable sources. This way even the decisions that are made for the future of the business ventures are accurately generated. Gathering information on the Chinese market as such, requires that most of it comes from the most credible sources. Some of the places that the information can be sourced are the government sources (Nowak & Dong, 2017). These will have the first hand and professional information that reflects the market. most importantly, the information that is published on the government websites is up to date and accurate. It is also important to note that most of the government agencies in China have websites. As such, when sourcing for information about the market in China it is crucial to check up on the agency websites.
The peer reviewed journals are also some of the best places that the information about the Chinese government can be sources. It is crucial to note that the peer reviewed journals offer information that has been refined through a panel of experts in the field. This is to mean that the information has been reviewed for accuracy and relevance (Li, 2012).
There are also websites that are maintained by professional organizations, institutions and teams of experts. As such, there are websites that have credible information from where the Chinese market can be assessed and characteristics established. It is also important to use books to source for information on the Chinese market (Nowak & Dong, 2017). Books are well researched and presented material on the various concepts and information on the markets and this present a chronological and even analytical approach of the market. It is easy to find any information on the market that one seeks.
Staffing
For companies that new to the Chinese market, it is crucial to understand that this is a challenging environment despite the opportunities that are accruing. Given the differences in the culture and the policies that are used within the American and the Chinese market, it is crucial to consider solid staffing approaches to counter the challenges that emerge (Li, 2012). For most of the international companies working in the market, one of the most common approach is using experts in the Chinese markets. Quite a number of companies working in the market have in the past cited the fact that, the local companies are favored over the international ones (Thompson, 2017). This means that the environment is largely imbalanced in terms of the number of opportunities and even the policy framework guiding the market operations. Working with experts in the field, will ensure that the company has a much more solid approach when it comes to staffing (Nowak & Dong, 2017). There has to be some element of balance when it comes to the number of staff that are employed from the Chinese market and those that are from the international company, in this case Americans. This level of balance assists with creating some element of trust amongst the staff in the Chinese market and better still negotiate for better treatment in the industry.
The Chinese culture when compared to that of America is highly different. Much of the practices in the Chinese society and even in the business world are tied to the communist traditions. As such, the Chinese tend to be more reserved than the Americans. This requires that WERUS, is very keen when staffing to make sure that all the Chinese cultural practices are observed with some significant level of detail. When staffing, WERUS needs to consider the level of adaptability to the Chinese culture the organization is using (Nowak & Dong, 2017). Attempting to bring in American cultures and practices in the Chinese market is likely to backfire, as most of the staff from the Chinese market will largely consider this disrespectful. This further requires that the company teams up with experts that are well versed with the in-country information and basic practices, who will assist the rest of the company to better adopt the Chinese ways and learn the ropes much faster with less conflict. This means that all the policies from hiring, operations, appraisals, welfare and most importantly leadership (Li, 2012).
In the past, the Chinese market has been plagued with staffing complications where some of the companies such as Apple have been exposed for using underage labor. This is a crucial element and one that is likely to affect that company reputation where the staffing process is not transparent. As such, it is crucial for the WERUS management to make sure that all the employees that are brought on board are of the legal age. This will shield the company off any implications that could easily soil the image and the brand, not just in the Chinese market or American, but internationally. Losing some of the shareholders in the process along with valued customers (Nowak & Dong, 2017).
The company also need to make sure that the staff from the Chinese market are offered hiring contract letters within one month of hiring. This is a mandatory element for all the foreign companies and one that can attract hefty penalties. As such it is crucial for the company to make sure they are working with experts on the legal framework that guides operations in the Chinese market, to avoid such challenges which could easily dent the image of the company and set back the chances for success (Li, 2012).
Verbal Communication
It is important to note that the Chinese and the American cultures are quite different and this is amplified when it comes to the communications styles. These are styles that are largely defined by the individualism against the collectivism approach in the two cultures. In which case, the Americans are guided by individualism while the Chinese are guided by collectivism. This is to mean that Americans tend to speak their mind while the Chinese are more reserved (Liu, 2016). As such, where there are negotiations it is crucial to note that the Chinese are more likely to address the various situations from a collectivist approach. Using the individual approach in negotiations, where the speaker directly refers to their abilities and viewpoints, this is likely to be viewed as rude. It is also common for the Americans to use empathy in their conversations (Thompson, 2017). When WERUS is conducting business in the Chinese market, it is crucial that the team does not expect such an approach, the Chinese tend be more reserved. It is also crucial to note that the Chinese do not outright refute a statement (Nowak & Dong, 2017). For the Americans, it is much easier to say no, while the Chinese will reserve their negative statements. This is relative to the fact that the Chinese are subtle in their communications. While the Americans tend to be more upfront when it comes to confrontations, the Chinese will try to avoid confrontations (King & Mallesons, 2012). This means that when there are negotiations, it is crucial that the WERUS managers should not simply assume that the Chinese counterparts have not disagreed with a given proposal simply because they did not disagree openly.
‘American organizational culture values individualism, which emphasizes individual productivity, independence, competence, and achievement. The slogan of “be the best YOU can be” best captures its characteristics. Individual autonomy and task-oriented mentality is what is expected, and individual goals are sanctioned in relation to group interests. In contrast, in Chinese organizational culture, collectivism takes precedence over individualism. Nothing is more valued than the overall harmony. Personal matters can never take priority over the group objectives. Communal and collective harmony outweighs the specific need of individuals. Originating from Confucianism, this philosophy instructs people to view themselves as a part of a larger community. As a member of that community, people are expected to follow the rules of the group, conform to the other members’ behavior, and avoid being obtrusive. In short, harmoniously merging into the group without calling attention to oneself is the key to success according to collectivism. As the Chinese saying goes: it is the sticking-out rafter that rots first (Beamer & Varner, 2009). As a result, Chinese employees may feel the American corporate culture as cold, indifferent and not caring. Similarly, the outwardly confident and self-reliant American coworker may have a hard time adapting to Chinese workplace where a people-oriented work atmosphere is prevalent.’ (Li, 2012)
Written Communication
When communicating with the Chinese through the written forms of communication, it is crucial to note that they are very keen on the finer details. This is to mean that, the Chinese are more likely to be keen on the written communication than what is presented by the speaker. As such, all the documents presented to the Chinese staff and other firms in collaborative businesses, have to be very detailed. Even to the staff, the circulars should carry enough detail with reference to whatever it is the company’s management is communicating. Structure is also crucial when it comes to the Chinese culture and as such information should use the organizational structure. Using the ranks to pass the information from the highest office to the lowest at the company. This makes emails the primary form of communication for the Chinese (Nowak & Dong, 2017). As such, the Chinese will value the information that is shared through the written communication that what is shared through the meetings. Where there are brochures for the company to share with the Chinese groups, it is crucial that there are emails or other forms of written communications such as reports which include more inclusive information (Liu, 2016). Where emails are sent to the different Chinese parties, it is crucial that they are preceded by a phone call. This ensures that the messages that are shared between the American and Chinese staff have some element of personalized approach and they are likely to be taken more seriously.
Communication Guidelines
Communication between the Americans and the Chinese is different relative to the cultural differences. These are differences that are largely associated with the verbal and the nonverbal approaches when interacting at the various levels. As such, for the WERUS to effectively communicate with the Chinese counterparts effectively, is important that they get to understand the basics. This is relative to the various differences between the cultures to avoid instances of misunderstandings which will affect the effectiveness of doing business. The Chinese are largely reserved and as such will not freely express their feelings compared to the Americans (Nowak & Dong, 2017). This is to mean that the American culture is more straightforward with a rich mix of facial expressions. While the Americans are more likely to show their frustrations when things are not working out, the Chinese are likely to stay composed. As such, the Chinese tend to be indirect in the communication. When it comes to communicating with the Chinese, it is crucial for the Americans to be m...