Expanding to China

1581 Words4 Pages
bulb-icon

Recommended: Communication across cultures in business

Expanding to China The purpose of this proposal is to explore the potential challenges involved in expanding business activities in China. Of specific concerns are (1) the need to identify expatriates; (2) recruit local talent to staff the business units; (3) develop those employed in the expansion project; and (4) identify and address cross-culture issues that will inevitably emerge and determine the most efficient and effective strategies for addressing the deployment of expatriates and local talent. In attempting to respond to these challenges substantial research was done, providing guidance, which can be considered in the expansion efforts. Expats versus Hiring Local Talent In pursuing expansion into the China market, the company must determine the most appropriate means for performing its business duties, specifically whether to employ expatriates or rely exclusively on hiring local talent. According to David Ahlstrom, Michael N. Young, and Anil Nair, in their article, "Navigating China's Feudal Governance Structures: Some Guidelines for Foreign Enterprises", many foreign businesses face considerable operational problems , such as running joint ventures or managing a local workforce that is a significant distance away from their headquarters (Ahlstrom, Young, & Nair, 2003). Consequently, an integrated approach to pursuing business activities is more desirable. Such an approach would utilize expatriates that possess knowledge of the products, services and overall formal business processes of the company as well as the employing of local talent, which are not only familiar with the culture and traditions of the locality, but will benefit considerably from the employment and training opportunities offered by the compa... ... middle of paper ... ...ncounters China's guanxi. Public Relations Quarterly 46(2), 16+. Retrieved from http://www.questia.com/read/5035448126?title=American%20Public%20Relations%20Networking%20Encounters%20China's%20Guanxi Jefferson, G.H., Hu, A.G.Z., & Su, J. (2006). The sources and sustainability of China's economic growth. Brookings Papers on Economic Activity 2, 1+. Retrieved from http://www.questia.com/read/5019875783 J Lin, C.C., Tu, R., Chen, K., & Tu, P. (2007). The changing expectations of consumers in cross-cultural service encounters. International Management Review 3(3), 27+. Retrieved from http://www.questia.com/read/5035128037?title=The%20Changing%20Expectations%20of%20Consumers%20in%20Cross-cultural%20Service%20Encounters Li, C.L. (2009). Managing business relationship development: A cross-cultural perspective. Portugese Journal of Management Studies XIV(2), 123-147.

Show More
Related

  • Advantages And Disadvantages Of Global Sourcing

    971 Words  | 2 Pages

    There strengths include government support for the industry and employees with advanced technical and language skills, specific business knowledge in banking, insurance, and healthcare and steady improvement on skill level (Wright, 2009). China has many inputs ranging from specialization in technology to low labor cost. By outsourcing to china companies are able to increase productivity and profitability for both countries involved (Wright,

    Read More

  • Globalization and Compensation

    1502 Words  | 4 Pages

    Finding the appropriate candidate, with the right attitude can be half the battle in recruiting, and placing expatriates versus host-country nationals. By focusing on the three primary attitudes of global management; polycentric, ethnocentric, and geocentric, the success of failure of any global endeavor could swing the pendulum toward either success or failure, as “expatriate failure can be costly if he or she leaves the company” (Schaffer, Harrison, Gregersen, Black & Ferzandi, 2006, p. 110).

    Read More

  • Trent Spencer Essay

    1445 Words  | 3 Pages

    Introduction In the world we are living in today globalization has enhanced the development of many global companies that functions next to geographical boarders. A lot of business are increasing through alliances and joint ventures to partner together to create more revenue and solutions to the problems. This problem has caused an increasing number of employees wanting to gain international experience outside of their home-based countries. Trent Spencer is an African American male that is 34 years old.

    Read More

  • Cultural Diversity

    1363 Words  | 3 Pages

    The human resource department should establish an evaluation center with the responsibility for the hiring and selection of overseas employees. This should be followed by outsourcing for services through contracting external relocation resource like global executive or intercultural consultants. Leaders can enhance organizational relations and intercultural effectiveness by increase cultural awareness and skills, promoting cross-cultural communications and change, cross-cultural learning, and culture-specific briefing

    Read More

  • Compare and Contrast: China and The USA

    926 Words  | 2 Pages

    ...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)

    Read More

  • Expanding Globally Strategy

    937 Words  | 2 Pages

    In terms of recruiting global talent an effective strategy is recruiting local talent to fill positions. It is harder to entice talented individuals to relocate and it can be costly to place expatriates in international assignments. Thus hiring locally has become more appealing. Local talent better understands the language, culture and local business community. Companies even recruit international students from U.S. programs to fill crucial roles in their home countries, as they will have an easier time managing within the local business culture.

    Read More

  • A First Time Expatriates Experience In A Joint Venture In China

    1747 Words  | 4 Pages

    In the reading "A first time expatriates experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played to strengthen and maintain the international partnership.

    Read More

  • The Importance of Diversity in the Workplace

    761 Words  | 2 Pages

    International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...

    Read More

  • The Cultural Challenges Of Doing Business Overseas

    998 Words  | 2 Pages

    A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2005). Doing business overseas has its challenges as well as it rewards.

    Read More

  • China: Rising to Be the Next Superpower?

    975 Words  | 2 Pages

    The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

    Read More

  • China's Development

    1177 Words  | 3 Pages

    http://www.uoc.edu/symposia/caixamanresa/jornadaeconomia/eng/vicky_hu.pdf> Naughton, B (2007) The Chinese Economy: Transitions and Growth, Cambridge, Massachusetts: MIT Press. Stoltenberg, Clyde D. "China's Special Economic Zones: Their Development and Prospects. " Asian Survey. 6th ed.

    Read More

  • Report On The Investigation Of West Indies Yacht Club Resort

    742 Words  | 2 Pages

    High turnover rate of expatriate: expatriate managers are frustrated with the performance and practices of local employees. And they do not have enough international experience and cross-cultural communication and sensitivity training.

    Read More

  • Business Failure Due to Cultural Differences

    1011 Words  | 3 Pages

    The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...

    Read More

  • Globalization and Human Resource Management

    1375 Words  | 3 Pages

    With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.

    Read More

  • The Impact Of Human Resources Management Globally

    1137 Words  | 3 Pages

    Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.

    Read More

More about Expanding to China

Open Document