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cultural differences in doing business in the US and China
cultural differences in doing business in the US and China
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As we revel in the wake of Globalization, models of organizations and styles of management are becoming increasingly similar. However, this conversion has a limit. Some cross-cultural differences will not disappear so easily and managers will have to understand and appreciate these cultural oddities' if they wish to run a successful business.
Let us take China and France as examples of two very different countries that may have cross-cultural problems while doing business. First we will give a general overview of the two countries and then discuss some management practices that may vary between these eastern and western cultures.
General Overview:
France
Geographical location: Western Europe
Population: 62.000.000 people
Language(s): French: 42,100,000 (92%)
Oc languages: 1,670,000 (3.65%)
German and German dialects: 1,440,000 (3.15%)
Oïl languages: 1,420,000 (3.10%)
Arabic: 1,170,000 (2.55%)
Economic status: France has a balanced and highly diversified market economy in which industry accounts for approximately 27 percent of gross domestic product or GDP (produit intérieur brut), services account for more than 68 percent, and construction, transportation and agriculture play an important role. France has ranked for the past 20 years as the West's fifth economic power.
Political system: French political system is characterized by the opposition of two political groups: one left-wing, centered around the French Socialist Party, and one right-wing, centered around the Rassemblement pour la République (RPR), then its successor the Union pour un Mouvement Populaire (UMP). The French government is republican in form.
Religion: 62% Roman Catholic, 6% Muslim, ...
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...anagerial practice. We believe that a simpler approach, prior to any business problem solving criteria, can lead to a similar three-dimensional classification.
Our guiding principle model, whereby sense of belonging, family or tribal or educational differentiation; culture and religion, the moral set of rules historically promulgated; and management analysis and language, linguistic exactitude or conceptual processes, may also provide a systematic formula for cultural comparison and harmonization.
We further contend that the need for comparative analysis, especially in the magnitude of variations between cultural traits - perhaps derived from ancient differences between hunters and farmers - will allow management training models to be developed. Basic human attributes of patience, trust and integrity should weather most cultural storms. If not, try patience again.
France is a country located in western Europe. The capital is Paris and it has a population of approximately 60,424,000. France was one of the many countries impacted by the Cold War and I will be discussing the current state of the country. Today, “France is one of the most modern countries in the world and is a leader among European nations. It plays an influential global role as a permanent member of the United Nations Security Council, NATO, the G-8, the G-20, the EU and other multilateral organizations. France rejoined NATO's integrated military command structure in 2009, reversing de Gaulle's 1966 decision to take French forces out of NATO.” (World Fact Book) As of 1958, it has established an amalgamated presidential-parliamentary governing system opposed to the instabilities experienced in previous, more purely parliamentary regimes. France has a Republic system of Government. In recent decades, its association and appeasement with Germany have substantiated the European economic unification. Moreover, in January 1999, the establishment of a common currency, known today as the euro. Early 21st century, a number of existing bodies, overseas became French provinces and were made part of France respectably. These existing bodies were Martinique, Reunion, Mayotte French Guiana and Guadeloupe.
Geert Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Second Edition, Thousand Oaks CA: Sage Publications, 2001
The renowned American anthropologist and cross-cultural researcher Edward Hall has stated “culture is communication and communication is culture” (Pennycook, 1985, pp. 269). Accordingly, a thorough study of the communicative patterns of any group provides a window into that group and vice versa. This section will compare the culture and communication patterns of China with those present in the United States of America. This comparison will be accomplished by examining four cultural dimensions or aspects of communication. For convenience and clarity, the presentation of these dimensions will be broken down into four subsections: power distance, individualism/collectivism, high-context/low-context communication, and proxemics.
Generally speaking, the French political system is special in two ways. First, It is neither a parliamentary system like the British one, where the executive emerges from Parliament, nor a system of separation of powers like the American one, where the President must take account of Congress. The French Fifth Republic is a hybrid system characterized by a Presidency that is oversized in the absence of adequate counterweights. Second, France also differs from most major modern democracies in using two-round single-winner voting rather than one-round (United States, United Kingdom) or proportional representation (continental Europe), which encourages a large number of parties (in the first round) and two major electoral coalitions (in the second), left and right. However, there have been many changes to the French sys tem since the foundation of the Fifth Republic: institutions and politics have continually evolved to achieve their present shape.
Understanding the business side and the country culture can help build a better understanding of how the business should come into the company and how the business should operate and viewed by members of the community. According to Professor Hofstede, “Culture is more often a source of conflict than of synergy.
...l Of Behavioral & Applied Management 11.3 (2010): 232-248. Academic Search Premier. Web. 09 Mar. 2014.
Management styles differ with each country, region and industry. From varying leadership styles, religious beliefs, geography to social mores to gender differences, there are many challenges facing managers in today’s global economy. I work for a global medical device and software industry where we have offices and regional management structures across the globe. I’ve had the privilege of working with managers and team members in the UK and European markets and have noticed many differences between how we manage staff, resources and clients. While we have commonalities in the product we’re implementing or presenting to clients or even the language we speak, in the end, we conduct business differently depending on the country or region we’re from.
The French economy was slightly erratic in pre-Revolutionary France, there were many reasons for this, one being that the
(2) What are the key characteristics of the chief approaches to management practice that are being used?
France is considered a very prosperous nation. The prosperity of this nation was mostly from the huge economic changes that were made after the 1940’s. This was because the French government started to modernize the economy. They developed new methods of production and trade through a series of national plans. Although, they still have macroeconomic problems just like every other country.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
Compared to other countries, France’s economy is the fourth largest in the world. France is a very industrialized nation, yet it has kept some of the cultural characteristics that contribute to its old-world charm. The economy is “exceptionally diversified” (“Economic Structure”, 1). It produces everything from aircrafts to pharmaceuticals.
Since the end of World War II, international operations have become a reality for an increasing number of corporations. Many of these initial efforts began as simple export schemes to sell goods overseas to supplement domestic sales. Over time, however, international operations have become increasingly more complex: from joint-ventures to purchasing existing foreign firms to ‘green-field’ start-ups. While export operations usually require no more than extended business trips overseas, more complex international operations demand long-term assignments of key personnel outside their home-country. What would normally be considered routine business transactions in the home country can become very complicated when they are conducted between individuals and organizations from different cultures. In this essay we will examine how this cultural gap can affect international business and joint ventures.
In this paper, we would compare and contrast two countries Turkey and U.S.A according to practices of organizational behavior. First of all, I would to speak about globalization because globalization has affected organizational behavior. We speak over fifty years about globalization. What is it globalization and what is the relationship between globalization and organizational behavior? Globalization is the integration of international market and other cultures with global economy. There is no board and businesses are across the world so that the relationship between cultures, society, politics and business are affected each other. Therefore, globalization has changed the element of management, leadership, communication, motivation, diversity and teams that demonstrate the relationship between organizational behavior and globalization. Of course, all countries are not affected by globalization same size. Some countries have main differences such as culture, religion, region and other beliefs. An analyze of organizational behavior practices between America and Turkey will be interest because there is very limited resemblance. Although we can be considered more collectivist, American have a more individualism that is why we have the most important
Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121