The culture and attitudes of the people of China is another challenge for the global manager, where he must seek to understand and accept it. An open mindset is required to be open to new experiences and challenges. Leadership is carried out differently in China compared to the West where empowerment is offered to employees. Whereas in China, leadership is based highly on teachings of Conficus, where a hieracrchy is maintained. The senior managers tell the subordinates and employee what to do.
There are so many articles and information is presented about “Doing business in China”. Even some MNEs, which successfully operated in numerous foreign countries, failed in Chinese market, just because of misunderstanding Chinese perceived environment (The case with Barbie). It is definitely hard to penetrate in the nature of the host country business environment. The one way to solve this challenge is to joint with local company, a local partner can help the entrant to make understand local way of doing the business. This approach suits even more in countries with developing economy such as China.
This also improves Chen’s loyalty towards Levendary. DISADVANTAGES: The main disadvantage of this strategy is that the China operations cannot be controlled by Denver head office. Levendary fails in acquiring global recognition for its brand. The core hierarchical structure of approach changes with this strategy. Levendary loses its core values and may become inferior choice to the customers in China.
Starting from social structure, the Chinese’ structure is formal and hierarchical while that of the United States is loose and informal, individuals can reach out to any person they need to. This can affect the performance of the business done in China, if the first person in the hierarchy does not understand much about the business. In addition to that, proving a point in china, even in business is
However, Hong Kong changed to be hybrid culture, which contains Chinese culture, Hong Kong culture and western culture, between 1930s and 1960s. Thereafter, Hong Kong changes to local culture versus national and global culture because of globalization since 1970s. As stated by Scholte (2001): “Globalization refers to processes whereby many social relations become relatively delinked from territorial geography, so that human lives are increasingly played out in the world as a single place.” Thus, globalization bringing convergence of cultures in a large extends unquestionably. Although some related observations in the Skeptics’ perspective argue that the innate character of globalization is “Americanization” and it will lead to more conflicts between different cultures, globalization bringing convergence of cultures. “Disneyization” is one of the significant examples to explain how the cultures can be convergent because of globalization, even Disney is an America’s company.
The theories and philosophy of Confucianism gave the rise to laws which base on the teaching in china at first, than it slowly spread across Asia countries such as Japan, Korea and Vietnam. The principal concepts of Confucianism are meant to apply for rulers, nobility and scholars but not towards the general population. But due to the burning of Confucian works during the Qin Dynasty, most of Confucian words are actually records from his students. (wisegeek, n.d.) In the context of Chinese business, the Ren & li of Confucianism helps China business work well with other people throughout the
Due to Tian Wen knowledge of Mandarin the communication of the new process and organization will be an advantage because they will be sure that the employees clearly understand their message. Thus, by reading the case it is obvious that the major issue of the takeover is based on communication and how effective is the communication between the leaders and the employees. The first problem of communication in this case is the lack of understanding the need for change in organizational management. In China communication is highly driven by context since it is a high context culture which is link to the fact that China is a collectivism culture. It should have impact the way of communication of the mangers of HI since the Chinese employee are more concentrated on the context rather than on the
The four bipolar cultural aspects highly developed by Hofstede (1991) for the two most important cultural groups concerned in business activities (that is to say, the Chinese and Malay) and the four accounting principles proposed by Gray (1988) are handpicked in this report in a bid to check for the likely relationship between public values and voluntary disclosure custom. This study chooses Malaysia because of it is diverse in culture. While controlling for other environmental factors such as the capital market
56% of the company’s revenue is gained outside France and which shows that the Europe retailer has an international presence. The biggest of the country in Asia is China. Initially, the company faced competition from local parties and the government policies were not favoring the European company. However, over time, the company has learned on the differences and strategies on becoming a stable business in the Asian market. Theme 3: main factors influencing Carrefour’s decision in entering new markets are market potential, regulatory and government
The Siauw Giap also used the theory of economic competition, which according to The economic competition and Giap Siauw especially the role of intermediary traders played by ethnic Chinese constitute factors caused the only occurrence of violent anti-Chinese in Indonesia (She, 2013:34). Wertheim also used economic competition theory to explain the emergence of anti-Chinese in Indonesia. Werthein stated that economic factors dominated the relations between ethnic Chinese and the majority population that then explained why the most violent anti-Chinese occurred in a period of transition or economic crisis (Purdey, 2013:34). Somers-Heidhues also use