Based on Richard R. Gesteland book, deal-focus vs. relationship focus is one of four patterns in the cross-cultural business behavior. More than a few divergences between deal-focus and relationship-focus make both of them will be grumble while working together. Deal-focus people will go straight to the work part. Deal-focus people can be assumed as aggressive, bad-mannered, and assertive. On the contrary, relationship-focus people will concentrate in build strong relationship before jump to the work part. In addition, relationship-focus people are calmer and more flexible in doing business. The examples of countries with deal-focus culture are Australia, New Zealand, Northern Europe and North America. At the side of relationship-focus, Korea, Japan, Chine, and Taiwan are the examples. Furthermore, there will be several explanations, analysis, and recommendations related with case “Exporting to Taiwan: Guanxi in Action”.
Taiwan is an example of a country that applying relationship-focus in the business. Relationship-focus people tend to do business with someone they familiar with. A relationship-focus people are avoiding business with a stranger. Therefore most of the businesses in Taiwan are happened between friends, family, or friends of friends. The connections or relationships that have to manage before do some businesses with Taiwan called as Guanxi (pronounced as gwan-shee). For this reason, Guanxi is one important key in having successful business in Taiwan and China.
Guanxi is a set of connections from several societies that lending a hand and keeping up each other. Guanxi plays the vital role in Taiwan and China business. While doing business with Taiwan or China, the first thing to do is getting the right guanxi. Chi...
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...put several testimonials from the other customers with the purpose of increase the trust from Taiwan people. After that, I will introduce several advantages to do business with Glorious Paints regarding with the distribution system, product awareness, and pricing strategy. Glorious Paints need to provide an easy and fast distribution system, and also give competitive price to Taiwan customers. At some time Glorious Paints also can give special offer like free paint or big discount in Taiwan’s special event.
In summary, cross-cultural business will require the business people to learn several cultures in order to success the business. Glorious Paints can start with learns Taiwan’s culture to expand the market in Taiwan. Do not forget to join guanxi to minimize business risks. After Glorious Paints get the right guanxi, the other barriers will diminish one by one.
The Cross-Strait relations refer to the bitter and unstable relations between the People's Republic of China and the Republic of China. The term comes from the relationship that both China and Taiwan has had, physically across the Taiwanese Strait. The relationship between the countries has been filled with war, tension, and little contact. In the earliest of Taiwanese history, both nations fought to seek diplomatic control as the legitimate form of Chinese government (Lee). In recent years, Taiwan has sought out to seek independence and separate from all ties with the Chinese mainland. China has continued its claim on Taiwan and its people, threatening military action against any act of independence. While the tensions are high between the two nations, each country has seen the benefits to maintaining an economic relationships with each other (Mack). From 2008 and on, the "three links" of transportation, commerce, and communication have been at the forefront of the diplomatic relationship. Taiwan has gone through multiple phases of conflict throughout its history.
Firstly, we can analyze that Canadians are individualism while Chinese are collectivism. Canada negotiators are more concerned with their sales over establish relationship with Chinese negotiators. They care ab...
The article also give snap shot of the foreign companies who misjudge the Chinese culture, competition, size the market, and some other factors, have been badly affected by investing in china.
The authors identify that there are three main factors that effect how people act, think, and make decisions. The first is religion, in some countries faith plays an important role in all areas of life in the culture of the country and can influence many of their customs and behavior. The second factor is that of fact. In many countries their greatest desire is to find the best deal and the best product or services. The final factor is feeling, if a culture is based on feelings the people will conduct business accordingly. For example it would be essential to make a personal connection with this type of individual.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
Shirley Ye, Sheng, and Yan Ma. "China Vs. The United States: Market Connections And Trade Relations." International Journal Of China Marketing 2.1 (2011): 45-57. Business Source Complete. Web. 13 Dec. 2013.
Internationalization Phase, during this phase Chinese companies focused on ‘building brand, localization of products and services for new markets, and differentiation of products to support higher margins’ they did what was ‘good enough’ for the market (Teagarden & Cai, 2009:78). An important issue during this phase was to research and develop the products, and to keep the key talent of the company, such as managers and engineers.
...elopments concerning the mutual establishment of the permanent offices of ARATS and SEF are in the spotlight. Taiwanese President Ma Ying-jeou has repeatedly made positive remarks about this. As business and tourism ties between China and Taiwan get closer and more active, the need for the mutual establishment of the permanent offices of ARATS and SEF, which handles consulate-general-like operations, is rising. Details still remain unclear, including what operations and authority these office would have, what levels of officials would head them or what extent of diplomatic privileges would be accorded to the staff of the offices. Given that Taiwan already has the economic and cultural offices in China’s special administrative regions of Hong Kong and Macao, some researchers expect the permanent offices of ARATS and SEF to be established in the form similar to them.
This report analyzes the cosmetics retail industry in Hong Kong. There are many large-scale specialty cosmetics chains that are well developed in this market, such as Sasa, Bonjour, Colourmix, Aster and Angel, which are taking the lead. They mainly offer a wide range of international branded products and private label products to cater for customers’ special beauty needs, like make-up, fragrance, skincare items. With many dominant firms and a slowing growth in demand, the industry structure is being identified as mature.
jeswald w. salacuse (2) 005 ‘The Top Ten ways that Culture can Affect International Negotiations ‘. Available from < http://iveybusinessjournal.com/topics/global-business/the-top-ten-ways-that-culture-can-affect-international-negotiations#.Uzwdh6iSySp > [ 3 April 2014]
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
In international management, culture is acquired knowledge that peoples use to interpret experiences and generate social behavior. This knowledge forms values, creates attitudes and influences behavior. Because different cultures exist in the world an understanding of the impact of culture on behavior is critical in the international management. There are many way of examining culture differences and their impact on international management. Culture can affect technology transfer, managerial attitude, managerial ideology and even business-government relations. Cultural affects a host of business-related activities, even the including the common handshake. For example, in the United States, the standard greeting is a smile, often accompanied by a nod, wave and it may sometimes include verbal greeting. In business situations, a firm handshake is used. Feeble handshakes are viewed as negatively as weakness. Men usually wait for women to offer their hand before shaking. As in the Czech Republic, shake hands, firmly but briefly, with everyone (including children) when introduced. It is also customary to shake hands once again upon departure. Men should wait to see if women extend their hands in inter-gender meetings. Also, avoid keeping the left hand in one's pocket while shaking hands with the right. In the Czech Republic, politics and other complicated ...
As a result, culture plays a vital role in expanding international business with its impacts from general strategic direction to details like logo.
All in all, the Chinese culture is vastly different than the culture we have in the west. Although that may be the case, we still have to learn and maintain a connection with the Chinese culture since we are so heavily involved in their economic system. Not only are we involved in theirs, they are greatly involved in ours. There are thousands of factories in China that make products to export to the United States. This means that we need to maintain a good connection with the Chinese culture in order to keep our “guanxi” positive with
Understand and heed cultural differences - cultural variables in transacting international business. (1991, January 28). Business America. FindArticles.com., Retrieved March 20, 2009, from http://findarticles.com/p/articles/mi_m1052/is_n2_v112/ai_10412261/pg_4?tag=content;col1