Intercultural Business Communication between America and China With globalization going on, China and America, as the first and second largest economic country, have been interacting closely in terms of economy. As we all known, culture plays a critical role in business communication. Understanding the other party’s culture can lead to success of business, while cultural misunderstandings in business activities can be destructive. Therefore, to achieve fruitful results from business interaction, we need to be familiar with both American and Chinese culture. This paper will start with the cultural values of America and China with theories in the field of intercultural research, then focuses on business protocol in these two cultures, and finally offers some keys leading to effective intercultural communication.
Should a multinational corporation operate as a tightly integrated, worldwide business system, or would it be more effective to let each national subsidiary operate autonomously? Nowadays, with the growth of foreign trade, multinational corporations are playing a very important role and representing a considerable proportion in global business (Helpman, 1984), the management strategies of multinational corporations are drawing wide attention. With the potential advantages of doing business internationally, MNCs are also facing some challenges, such as language barriers, cultural differences, political restrictions and so on. In the recent years much of research effort has been made on the topic of managing and innovating each national subsidiary. There are always two main perspectives – should all the subsidiaries being operated tightly follow an overall strategy or having more freedom to develop the business autonomously?
The heavy dependence on retail stores leads to widespread availability of counterfeits which provides a unique challenge and directs towards the importance of having own-stores to ensure the legitimacy of the products. Another problem Shanghai Tang faces now is the need of shift of customer focus from European and American buyers to Chinese customers which will expand the customer base of the company. Even though a lot could be done better the management process of the company is excellent which includes the following i) Design Process: The mixture of both the core collection and seasonal collection maintains a balance between trademark products and the newness factor. The focus on theme and the creative designer as the core adds a lot of value to the design process. ii) Brand Considerations: Focus on the Shanghai Tang DNA leverages the brand equity that has been developed till now but on
The heavy dependence on retail stores leads to widespread availability of counterfeits which provides a unique challenge and directs towards the importance of having own-stores to ensure the legitimacy of the products. Another problem Shanghai Tang faces now is the need of shift of customer focus from European and American buyers to Chinese customers which will expand the customer base of the company. Even though a lot could be done better the management process of the company is excellent which includes the following i) Design Process: The mixture of both the core collection and seasonal collection maintains a balance between trademark products and the newness factor. The focus on theme and the creative designer as the core adds a lot of value to the design process. ii) Brand Considerations: Focus on the Shanghai Tang DNA leverages the brand equity that has been developed till now but on the other hand it limits the creativity of the designers.
International Marketing Decisions ESCP Europe London Campus CASE STUDY #1 IKEA GEROMETTA Matteo, LAVIDALLE Edouard, MAYER Clara, MOIN Hélène, NARANG Skand, NAZARIO Giulia, SPEIDEL Christian MF WHAT ARE THE FACTORS WHICH MAKE EXPANSION ABROAD IN RETAILING DIFFICULT? Legislative barriers Suppliers & product availability Timing Political framework Competitors Taxes Cultural barriers Expansion abroad Internal factors Group 5B – IKEA Case Study 2 WHAT HAS MADE IT POSSIBLE FOR IKEA TO SUCCEED INTERNATIONALLY? Several key elements helped IKEA expand internationally Organizational factors Presence of the founder and flat structure Knowledge sharing Entrepreneurial culture Structure, tax system Strong commitment and clear mission statement Financial structure Conservative approach No pressure to expand Packaging, easy to move materials Emotional impact on customers Clients involved in assembly “Swedish factor” Targeting, design at low cost Group 5B – IKEA Case Study 3 EVALUATION OF IKEA’S MARKET ENTRY STRATEGY SWOT ANALYSIS STRENGHTS • • • • IKEA brand Retail model High Level of Standardization Strong Corporate Culture • • • OPPORTUNITIES Emerging markets potential (e.g. India) Online sales Culture of Innovation WEAKNESSES • • • IKEA • • THREATS Local competition and tastes Other channels competition (e.g. Amazon) 78% sales in a mature market Lack of flexibility/ site suitability Product Line based on standardization Group 5B – IKEA Case Study 4 EVALUATION OF IKEA’S MARKET ENTRY STRATEGY “BRING A LITTLE BIT OF SWEDEN TO THE WORLD” Cost reduction Global strategy Transnational strategy International strategy Multidomestic strategy Local responsiveness Hill, C., Jones, G. & Galvin, P. (2004).
Chapter one analyses Medtronic as a multinational enterprise by addressing”an initial screening of business environment including political environment, economics, culture etc. Medtronic’s competitiveness and abilities is analyzed through a combination of country specific advantages (CSAs) and firm specific advantages (FSAs) and is included in FSA/CSA Matrix and by addressing Porter’s four determinants. In chapter Two in-depth analysis of challenges and issues the company faces as well as risk management plan the company must undertake in a long run for reducing its operational risks. The last chapter is about developing a strategy for the successful operation of Medtronic as an MNE with an overview of IHRM, personal selection, training and development. Recommendations and suggestions for Medtronic on the level of involvement the company should take to increase the likelihood of long term success are included in the conclusion.
In the context of global trade law, critically examine the challenges and opportunities facing developing states within the complex global institutions and legal construct of WTO. Discuss the legal, political and economic effects of world trade liberalization (30 marks) International trade sees the exchange of goods, capital and services between both countries and continents, crossing national and international trade boarders. As is the case with most countries, this ‘cross trading’ accounts for a large percentage of a countries revenue and it’s GDP (Gross Domestic Product). Trade has played a vital role in shaping the world’s global economy and the economic and social prospects of developing countries. At a United Nations Summit recently, global trade was hailed as the reason certain newly industrialized countries such as China has become so forthright and dominant in their advances both economic and social, the following report read, ‘In recent decades, a number of developing countries, most notably the East Asian newly industrializing countries, have been able to purposefully use the elemental force of trade to boost growth and development within a relatively short time span.’ (Puri 2005 cited in UNCTAD 2005 report p.22) But this boost in International Trade has not been without its complications and challenges.
The corporation is currently undertaking plans to expand “its presence in Asia, particularly in China and India” in an effort to leverage the face-paced economic development in these countries to continue growth (Datamonitor, 2011). Corporate Social Responsibility (CSR) History (Slide 2) The concept of corporate social responsibility (CSR) relates foremost to “the conceptual challenges raised by scholars and advocates who criticize corporate America’s shareholder primacy ethos” and offered “theoretical insights as to why companies should not be treated solely as their shareholders’ private
Business ethics Business ethics (secular ethics) is the sum of principles governing practices related to entrepreneurship. The increased growth of business, however, push the meaning of the term to its limit: practices, which would have been considered ethical some decades earlier, or which are still considered unethical in other parts of the world may be the mainstream mondus operandi of today’s business firms in aggressive marketing environments of the developed world. With the need to expand in response to the stockholders’ expectations, the firms sought the assistance of competitive intelligence professionals. Employment of such a type of ‘analysts’ to provide a feedback on the competitors’
It also discusses the impact of these cultural differences on their management practice from five aspects: cooperative strategies, conflict management, decision-making, work-group characteristics, and motivation systems. The 21st century is an era of the globalization of world economy. Cross-national business is facing great challenges in cultural differences. In one survey entitled What is the biggest barrier in doing business in the world market, cultural differences ranked first in all eight items including "law, price competition, information, language, delivery, foreign currency, time differences, and cultural differences. Hofstede (1993) believes that the spread of businesses onto the global stage brings the issue of national and regional differences to the fore.