Premium Essay

How to Do Business in China

In: Business and Management

Submitted By Flipvolt
Words 1812
Pages 8
How To Do Business In China
Now that business is becoming global, it combined the whole economic, no matter you will accept or not, any countries, corporations and individuals can not stop this trend, what we can do is change ourselves to suit the globalization. As a multinational company, develop different markets have its necessity, and market development can be helpful for the development of the company.
In this report ,as the people working in this company, will analyze the differences between home country market and target country market, and help to choose the suitable market when company have willing to investing in a foreign country, the decision of the country which the company can invest in is China. In this report, will make analysis for Chinese market in economic environment, culture, marketing and human resource management, to prove its accessibility, and what risks the company will meet, then give some recommendations to escape or solve the problems.

For the decision of target market, will based on its profitability and expansibility, China is a country that has the number of population as 1.3 billion, which means it has great predominance in consumption, now Chinese people’s consumption in household goods and home furnishings less 100 Yuan per capita, below the standard of world average as 200 dollars. But with the development of Chinese economic, there are 20 million people will enter the middle class per year, and with the increasing of people’s income, the amplification of building area and the increasing of consumptive level, the requirement of household goods and home furnishings entering the new phase, and the potential of requirement becoming greatness.
Moreover, now Chinese furniture market has not perfect criterion, many outdated and lower quality productions still circulate in market. The UK furniture industry now trends to mature,...

Similar Documents

Free Essay

How to Prepare Business in Both China and Arabia

...Business Communication 04/19/2015 How to prepare business in Saudi Arabia and China There are a lot of elements that make life different between countries around the world, which makes it harder for people to communicate and understand each other. Elements like geography, population, features, economic systems, verbal and nonverbal languages, religions, genders and customs are common important elements that make conflicts between people around the world. Understanding and respecting these elements will make a safe life. However, the most important reason that attracts people to know more about each other is business. Countries like Saudi Arabia and China are two of the most important business countries around the world. So, learning about how to prepare international businesses in China and Saudi Arabia are necessary. Geography Saudi Arabia is located in the Middle East, which has very important navigational routes that connect between the east and west. That location gives Saudi Arabia an advantage when it comes to international trading. Saudi Arabia shares borders with Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457 km and Yemen 1,458 km. Those countries are unstable and that makes it hard to do business and investments in such a region. Although, Saudi Arabia is on the borders of those countries, the investment still is going well. On the other hand, China stretches about 5026 kilometers across the East Asian landmarks. It is......

Words: 2592 - Pages: 11

Free Essay

California Pizza Kitchen

...Lafont Assignment 3 Disrupting Global Competition In today’s world, we are extremely lucky with the way we can conduct business. Increased technology has led this planet to heights we thought we would never reach. Communication throughout the world is now as easy as pie. Not only do we have the telephone, but we also have email, scan, fax, and wire. All of these communication ways are cheap and it is China, not the United States that knows how to take advantage of this though low labor costs. This is why we do business in China these days. Globalization is the reason why we can outsource to China with great success. China operates better than the United States. A main reason of this is that they have a clear-cut division between ownership and management. In some United States companies, there is confusion that exists right here. Management and ownership also share the same goals in China. Management and ownership are both doing their own individual job to create a marginal profit, we definitely could learn from the Chinese on how to do this. Another man reason is that Chinese companies have not been outer-performing in the world markets as much in recent years. This is occurring because China’s marketplace has been changing. The government in China is very powerful. Many people see this as a bad thing in the United States, but in business perspective it is a good thing. The Chinese government can take control of an economic problem with its high......

Words: 2274 - Pages: 10

Premium Essay

Global Ethical Problems

...rights violation in China and Google’s dilemma. Companies deal with ethical conflicts with China daily. Google Inc.’s struggled with ethical implications for doing business with China. The paper addresses the ethical problems that companies like Google, Inc. encountered that caused their decision to withdraw from China. The paper will show how Vietnam covered up corruption, freedom of speech, transparency, and supply chain ethical issues. Big companies continue to draw criticism for accommodating governments and compromise their ethical or moral standards. Companies have an enormous opportunity in China to make a bigger profit by doing business in China. The organization cannot assume that Chinese do business the same way Americans do. To do business in China a company has to follow government directives. Chinese want to do business with people they trust. Terms on contracts will not mean the same thing to them as they do to Americans. Chinese businesses do not feel they are bound to contracts. In America a company competes with 100’s of business but in China, you are competing with globally. Google Inc’s announce in Beijing their decision to withdraw from China after ethical implications of hacking into the privacy of Google’s users. Google had to limit the excess of information on the search engine in China. China does not hold to the same freedom of speech American do. Free speech advocates criticized Cisco Systems, inc. for selling equipment to China that blocks Web......

Words: 1514 - Pages: 7

Free Essay

China Myths, China Facts

...Case Study: China Myths, China Facts Julliana Schlemper Embry-Riddle Aeronautic University Organizational Behavior & Change MGMT520 Fernando Muniz April 27, 2016 Case Study: China Myths, China Facts Introduction Considered the second-largest economy in the world, that should surpass the US in the next decade, China has a very unique culture. When I think about China, in a business way, I think about very serious people that know what they want and go get it. Chinese people like to know you more than what other people from other nationalities would. This way, Chinese can learn more about the person and know if they can trust you or not. Most of what Chinese do in business has to do with trust and how it’s built. The biggest difference between the West people and the Chinese people is we work on building a trust relationship (Harvard Business Review, 2015). In this case study, I will comment about three myths that surround China’s culture, work ethic and management techniques. The three myths are collectivism, long-term deliberations and risk aversion. Discussion Questions 1. Has this presentation challenged any assumptions you had about China and the Chinese people? Yes. Movies, News, the media in general, have pictured China as a culture that is more inclined to the individualism more than collectivism. It was new to me to know that workers in China are more inclined to self-interest than their communities and the companies they work for. 2. Using......

Words: 735 - Pages: 3

Premium Essay

China

...[pic] A2 Business Studies Pre-Release Research Task ‘Development in Emerging Markets: China’ Learner Name: _____________________________ Preparing for A2 Business The Unit 3 examination Strategies for success • 25% of A level • 1 hour 45 minutes exam • 80 marks • The exam is case study based and comprises one 10 mark calculation question, two 18 mark evaluation questions and one 34 mark report. The Unit 4 examination The Business Environment and Managing Change • 25% of A level • 1 hour 45 minutes exam • 80 marks • Section A: Pre-release research tasks leading to a 40 mark essay • Section B: Choice of 3 essays, one must be chosen for 40 marks • This unit is synoptic – this means that it pulls together all the material from the entire AS and A2 specification. There are two key additional elements of preparation for this paper: Complete the research task The research task is designed to enable you to investigate in detail a small part of the Unit 4 specification. The research brief will give you precise guidance on the tasks to complete. Do not make too much of this task and extend your research beyond what is asked. Do, however, relate your research to a variety of large businesses producing goods and services and operating in different markets. Read widely about business You should read newspapers, magazines, and books, watch television and surf the internet for......

Words: 6232 - Pages: 25

Premium Essay

Academic Credibility

...China Outline Time is roughly 4:22-4:45. I really want to make sure we do not go over the twenty min and have time for questions at the end. Can you guys time yourselves to see how long your parts are? Intro We live in a world where the communication of information is clear, not vague, and we can gain access to that material fairly quick and precise. With so much happening and how quickly it transpires, it changes our perception of thought. We consume so much time trying to find facts about the latest thing….. The latest broadcast….. Which country is on the edge of revolution or an ultimate increase in growth; or which one will have that everlasting influence on the world’s economy. Take China, for instance. The biggest study is about how China is thriving economically and about to turn into the next world power. Researchers are meticulously tracking economic developments and commercial data as a way to eventually thrive in its atmosphere. Reporters’ and experts from all over the globe are either persistently composing eager predictions or partaking in discussions about what China will do in the future. According to the Central Intelligence Agency, data shows that, following its entry into the World trade Organization, China offers a huge potential market for investment and sales with its main industry generated from iron, steel, coal, textiles, and petroleum. As for us, we are a part of Higher Global; we make investments that include branching out into other......

Words: 883 - Pages: 4

Premium Essay

Global Business

...Global Business What is global business? It is not difficult to define this word. By definition, global business basically stands for a business which operates across the globe, rather than just in a country. However, global business is not something new or strange in today’s society, yet the exchange of goods over a great distance has already existed since very long time ago. Back in the Stone Age, anthropologists have already established trading in Europe over a long distance; According to the history, the Silk Road, a historical network of interlinking trade routes for the lucrative Chinese silk trade, is also a type of “global business” back in the old time. Although these two examples cannot perfectly represent what global business is, still, they had the same characteristics. In the 21st century, today’s society, global business has a much bigger and broader meaning, it could include creation and transfer of goods, skills, information, resources, and even services. Resources may include raw materials, capital, and energy, etc.; whereas goods include tangible goods and intangible goods, such as manufactured parts, sub-assemblies, and assemblies. Intangible goods, like service, may include financial, accounting, import and export. It is no longer defined only by the distance or number of offices companies have in countries around the world or how many products they sell internationally, yet, according to an article published on Business Inquirer, by James G.......

Words: 993 - Pages: 4

Premium Essay

Hofstede’s Five Dimension Comparison of Germany and China

...Germany and China Hofstede’s Five Dimensions Hofstede’s five dimensions are a useful tool to give someone an insight of different cultures. These elements give a country’s behaviour tendencies rather than an exact prescription. There are weaknesses to Hofstede’s Five Dimension theory as it may too easily encourage stereotyping. Even in countries as small as the UK, not all citizens are alike – e.g. it is argued that the culture in the North of England is quite different to the South. Hofstede has also been criticized for being too simplistic; however Hofstede’s theory does give us a general base to work from. 74 countries are listed on Hofstede’s website from which information can be drawn to make comparisons not only between countries but against the world average to give a broader picture. The following graph gives a comparison between Germany and China. It also allows for assessment against the Asian average and World average and our own British culture as benchmarks. Hofstede Comparison: UK, Germany, China Asian Average and World Average [pic] Comparison of Germany and China [pic] Power Distance Index Germany 35 LOW China 80 HIGH Individualism Germany 67 HIGH China 66 LOW Masculinity Germany 66 HIGH China 66 HIGH Uncertainty Avoidance Germany 65 HIGH China 30 LOW Long Term Orientation Germany 31LOW China 118 HIGH Power Distance Index – PDI Power Distance measures equality of power in society and how much people...

Words: 2764 - Pages: 12

Free Essay

Google Mini Case

...Google: Dealing with China Group 1 - What major pros and cons are there, regarding alternatives for addressing issues/opportunities? Some of the major pro’s that may be present while addressing issues and opportunities is that it may force individuals to think of alternative methods to conduct their business. Some of the advantages of coming up with new ideas is that it can also lead to new opportunities that may not have presented themselves had they not been forced to confront something that was atypical to begin with. Issues and opportunities often go hand-in-hand and is one of the primary precursors for entrepreneurs to begin their own business – identify an issue, or a need, and present a solution which results in an opportunity to sell or market their idea to resolve the need or issue of a potential customer or client. Additionally, there are con’s when being confronted with issues and opportunities when alternatives are the only means to resolve the issue. Sometimes, the alternatives may jeopardize the company’s moral or ethics or even run contrary to their corporate motto, such as in the case of Google’s corporate model of “Don’t be Evil”. Unfortunately, their corporate motto, and their culture is in direct opposition to that of the China’s government when it pertains to internet usage, search results and disclosure of personally identifiable information. As a result, Google in China has had to define what it means to not be evil, while still attempting to remain......

Words: 2052 - Pages: 9

Free Essay

Egt1

...In today’s economy China has become a big player. If you look at many of the products in your house, most of them probably say made in China. With China being a partner to a lot of US businesses we have to be sensitive to the culture and traditions in China. To put this simple China has a different way of doing business than we do and in order to become successful when expanding into China we need to understand and accommodate those differences. While there are many cross-cultural differences between the US and China I will look at three of them. Three of those cross-cultural differences you need to understand and accommodate before you expand into China are ethnic culture, priorities, and decision making. The ethnic culture of China varies greatly from that of the US. Chinese people are more focused on relationships and group work while Americans are more individuals. Chinese tend to be more courteous and create personal relationships with their co-workers. Americans tend to be more direct and put business above personal relationships. Because of these differences, Americans tend to put conflicts behind them quicker for the betterment of the business and Chinese tend to take things more personally and it takes them longer to put conflicts in the past. Chinese also respect people based on age and wisdom whereas Americans tend to respect success and achievement. When expanding into China you need to address the ethnic culture in order to build a strong team and......

Words: 1647 - Pages: 7

Premium Essay

Business Ethics Across the World

...Business Ethics across the World Have you ever measured that how different countries become closer to one another and it has produced alike views for countries that do business together due to globalization? Through the growth of globalization several ethical issues are getting exposure according to management teams. You can imagine if ethic is dilemma within the country then how about the issues that occur due to foreign language, diverse cultures and number of people involved grows to a global scale. This paper will identify ethical perspectives of two countries, India and China, and how these two articles contribute to understanding global ethics. It will also explain how china’s and India’s business ethics compare to the United States. In journal of business ethics (2009), article “A Chinese perspective: Business Ethics in China Now and in the Future”, describes that China has been at the forefront of growing concern, not only about its products and enterprises, but also about its business ethics. This article analyzes the state of ethics in business in China. China now manufactures or assembles over 50% of the world’s products. However, the world has been reeling from daily accounts of defective “Made in China” products. China has been at the forefront of growing concern, not only about its products and enterprises, but also about its business ethics. This article analyzes recent events connected with the Made in China label from the perspective of evolving Chinese......

Words: 1122 - Pages: 5

Premium Essay

Bussiness Q&a

...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? 4. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each? 5. Why is outsourcing such an attractive way for firms to tap into foreign markets? What are the risks of foreign outsourcing? 6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment. 7. Explain how countertrading works. What are the benefits and drawbacks for both parties that engage in countertrading? 8. What are the key elements of sociocultural barriers to trade? How can companies overcome these barriers? 9. How has NAFTA impacted the U.S.? Overall, do you believe that it was a positive move for the U.S.? Why or why not? 10. What is the overarching goal of the European Union? What role has been played by the introduction of the euro...

Words: 1489 - Pages: 6

Premium Essay

Business Ethics

...Have you ever thought to consider how different countries come closer to one another and fabricate similar views for countries that conduct business together? Through globalization growth, multiple ethical issues are receiving exposure accord to various management teams. If business ethics is a dilemma within the country then consider the issues that occur due to a foreign language, diversity in cultures, and the number of people involved raises to a global scale. In this paper, I will identify the ethical perspectives of two different countries, China and Australia. China has been at the head of concern about products, enterprises, and business ethics. The article examines the business ethics of China. China is now the manufacturer of over fifty percent of products in the world. While that would seem like a positive thing, the world has been faced with countless times where “Made in China” products have been considered defective. The beginning and expansion of business ethics in China can be separated into two different periods in relation to China becoming a member of the World Trade Organization (WTO). Even though China’s business ethics had expanded from not really being anything, to becoming a discipline, the topic still is faced with many challenges. Despite those challenges, China must develop and build up their business ethics to meet satisfactory standards. Right now, as mentioned above, China is running into problems with the safety, durability, and overall......

Words: 980 - Pages: 4

Premium Essay

Case Search

...Case Study: Google in China China has human rights issues and is a source of discomfort in the Global Business community. Due to the nature of the government in China being communist and an inner circle of its people being against what the government stands for this creates a delicate situation for business’ wishing to conduct business in China. In the United States there are groups who boycott business’ who chose to do business in China because of the human rights violations of the past. One company that chose to set up business in China but on China’s terms is Google. Google is a search engine used by millions of people as a path to find various subject matter or trade online with other companies. Google agreed to China’s terms that the search engine would have to place filters on their search engine to block certain information for the Chinese people (Hill, 2009). From an American based business this would present a conflict since in the United States is based on freedom and a democratic society. Any business should see this as a problem in the eyes of the American public and operating their business overseas. Google accepted the terms of wanting to operate in China under the stipulations that Google would preinstall software that would disable certain search information. The ethical problem with this is how China treats its people as opposed to how the United States treats its citizens. When business chooses to operate in another country the cultural......

Words: 557 - Pages: 3

Free Essay

Lawsons

...Located in Southeast Asia, the Socialist Republic of Vietnam is bordered to the north by the People’s Republic of China, to the west by Laos and Cambodia, and to the east and south by the South China Sea. The country is a mere 127,000 square miles but has a population of almost 86.2 million. The language is Vietnamese, and the principal religion Buddhism, although there are a number of small minorities, including Confucian, Christian (mainly Catholic), Caodist, Daoist, and Hoa Hao. In recent years, the country’s economy has been up and down, but average annual per capita income still is in the hundreds of dollars as the peasants remain very poor. One of the reasons that Vietnam has lagged behind its fast-developing neighbors in Southeast Asia, such as Thailand and Malaysia, is its isolation from the industrial West, and the United States in particular, because of the Vietnam War. From the mid-1970s, the country had close relations with the U.S.S.R., but the collapse of communism there forced the still-communist Vietnamese government to work on establishing stronger economic ties with other countries. The nation recently has worked out many of its problems with China, and today, the Chinese have become a useful economic ally. And Vietnam is well on its way in establishing a vigorous trading relationship with the United States. Efforts toward this end began over a decade ago, but because of lack of information concerning the many U.S. soldiers still......

Words: 1923 - Pages: 8