A Cultural And Business Analysis Of China Essay.

Question:

Discuss about the Marketing And Cultural Analysis of China.

The country China, also known as the People`s republic of China is one of the largest countries of East Asia. Occupying approximately the entire East Asian landmass, it occupies one-fourteenth of the land mass of the planet and has the largest population in the world. The country has thirty-three administrative units under the domain of the Central Government. The capital of the nation is Beijing, which is also the communication, economic and cultural capital of the country (Shambaugh, 2013). The leading port and commercial centre is Hong Kong, with Shanghai being the industrial city of China.

The country is highly complex and a diverse country in terms of climate. The climate ranges from extremely arid conditions in the northwestern part of the country to southeast with one of the greatest contrasts in temperature. This diversity has resulted in the world`s widest collection of ecological niches, with these being rich in a vast variety of animals and plants of all kind. In terms of history, China is one of the few civilizations, which are still existing (Poston Jr. & Yaukey, 2013). The Chinese civilization flourished both culturally and economically in its earliest stages.

Although there have been cases of social and political turbulence in the country, China has shown commendable longevity and resilience in its cultural-political unit. This country has developed its culture without much outside intervention, Buddhism from India being the only exceptional case. This non-existence of any intervention from the outside world, although made China a culturally rich country, but it also left China paralyzed when faced by the technologically superior nations (Scharping, 2013). Amongst this foreign on slaughter, China found itself in a weak position. However, this inability brought about a revolution, which fought against the old regime and gave rise to the establishment of a communist regime. This was the turning point for China, where thereafter the nation was reshaped in every aspect including political, business and infrastructure. Since then China has become one of the most influential and powerful countries in the world

The economy of China is one of the largest in the world for the last few years during which it has witnessed the cycles of decline as well as prosperity. The country is the world`s second largest economy in terms of GDP (Gong, 2012).The country has built itself into an economic giant with trillions of reserved and Foreign Direct Investment opportunities. China in the global economy. The country is also the largest international holder of United States debt owning over $ 1.15 trillion in their treasury bonds. With high rankings in the Global Competitiveness Index, China has low rankings in terms of economic freedom

China's Ecological Diversity and Cultural History

The country has made huge investments in terms of scientific research. The Chinese believe that science and technology are vital for the achievement of the country`s political and economic growth. They have been developing their educational system as well especially in the domain of mathematics, science and engineering (Jiang, 2013). Some of the brands of Chinese technology like Huawei and Lenovo have become world leaders in personal computing.

China realized the dependence of its economic system on the US Dollar and recognized this weakness in its international monetary system. It improvised the system and because of this, the Chinese currency became the eighth most traded currency in the world. This report throws light on the environment of China with special aspects to the cultural and business in the nation (Yin, 2013). It includes a study of Hofstede`s five cultural dimensions of China.

China has been chosen as the country in the assignment because when the topic of international business arises, China is a lead player in the global market and the highest attractor of the Foreign Direct Investments as stated earlier. Hence, China was an optimum country to understand the issues in international business.

The given section will discuss the business cultural analysis of china which shall provide an exploration of China`s culture and their business cultural structure. The aim of this section is to identify the daily elements of the culture of China and how this culture is incorporated in their business.

Globalization has opened various doors for expansion of trade into the other countries of the globe. Therefore, when a company is expanding its operations, the knowledge about the culture of the other country is crucial (Ardichvili et al., 2012).

Demographics

The country ranks one in the world with respect to its population, which are more than one billion people. The country encompasses several ethnic groups with the Han Chinese being the largest of all (Kleinman & Lin, 2013). It includes other minority groups as well like Tibetan, Korean and Zhuang.

Communication

China has a high context , non-verbal society  which helps them to gain the art in their growth to understand what to say and what action needs to be taken even if it is not said to them directly (Griffin & Pustay, 2012).They rely on facial expressions and tone of voice to determine one`s feelings. They also tend to avoid eye contact, as they believe that eye contact is a sign or disrespect.

Revolution and Communism

Written and Spoken Language

Mandarin and Cantonese are the two primary dialects spoken (Warner, 2014). The first belonging to the southern part while the latter belongs to the northern part

Greetings

Greetings are an important aspect of China with the elders being given most importance. The people are addressed using the last name unless advised otherwise (Ardichvili et al., 2012). They tend to bow their head when greeting other and with respect to foreigners, a handshake is considered appropriate.

Dining

The host is always the first person to begin eating during a feast. He also tends to propose a toast.  When the feast begins, the host will be the first one to begin eating. The host is also the person who proposes the toast (Gomez, 2012). The chopsticks when not in use should be laid on the table; they are not something to be played with, as this is a sign of disrespect for the host.  

Religion

The communist party of China is atheists.  Religious freedom is allowed in China; however, many are harassed for their religious beliefs and practices. Five religions are acknowledged by China, which include Buddhism, Islam, Protestantism, Taoism and Catholicism.

Ethics and Values

The Chinese have high ethical and moral values.

Marriage

Marriage comprises a significant part of the Chinese culture. The acceptance of both the parties to marriage is important (Gomez, 2012). Arranged marriages, Polygamy and Incest are forbidden.

Children

The government had placed a limit of the number of children a family can have. The limit being set to one. However, recently when it was discovered from a study that the ageing population of China has increased, the limit was raised to two.

Confucianism

This principle can be defined as a set of ethical and moral system, which represent the rules that one person, should abide by based on the teachings of Confucius who was a Chinese philosopher (Warner, 2014). He had laid down various systems of social structure system based on the equality of relationships and educational system, which is considered extremely important in China. Children of wealthy families have a better advantage at gaining high post governmental position in jobs.

Corruption

Recently, corruption has been observed as an emerging threat to China. It has increased in the mid level and senior level involvement for monetary reasons. Enforcement has not been very successful (Gomez, 2012). The Chinese government has certain anti-corruption measures however, according to a report less than 3 % of corrupt officials end up behind the bars.

China's Economy and Scientific Research

Etiquette

Social interactions require proper etiquette

Relationships and communication

Business in china is generally done with known companies because of the confidentiality of business data. The business information of the two companies who are dealing is sent ahead of time. Gender roles do not exist and respect is given to the rank of the person (Ardichvili et al., 2012). The Chinese prefer face-to-face interaction. In social occasions, they Chinese do not like to discuss matters related to the business.

Gift giving and Greetings

Giving gifts and receiving is not acceptable in the domain of business. The gift even if given with due respect is considered to be a form of bribery which is considered to be illegal in the country. Handshakes are considered the formal greeting. While using titles of courtesy most of the business executives should be addressed with a title, which is followed by their last name.

Meetings

Appointments for the meetings scheduled are made in advance and punctuality is of extreme relevance in meetings (Kleinman & Lin, 2013). Talking out of turn or intervening when a person is explaining his agenda is not acceptable. Senior management sits along with other senior members. The Chinese expect the business partners or prospective partners to be well prepared for the meeting. It is suggested that the business proposal has at least 20 copies so that it is handed out to everyone present in the meeting. The presentations need to be build in black and white, any other color should be avoided. Composure must be maintained during the meetings. Reflection of emotions tends to put a negative effect for the concerned business organization.

Social Structure

A person is associated with their work circle and the individual should not depart from his group. It is also said that while entering a meeting, the organizational hierarchy should be followed.

Negotiation

Negotiations may be done by the senior management of the company. People in china do not like confrontation. In addition, they prefer not being pressurized to take certain decisions. The Chinese tend to have a habit of extending negotiations beyond the deadline to gain advantage in dealings. Patience is the key.

Appearance

Dark color business attires are considered appropriate for the men and on the other hand, women should be wearing a dress or a business suit with flat shoes and a high neckline (Chan & Tong, 2014).

Body Language

Body language and movements are needed to be taken care of and a person needs to be constantly conscious when doing business in China. A person needs to stay calm and collected.

International Monetary System and Cultural Dimensions

The body posture should be attentive and formal thereby demonstrating self-control and respectfulness. Actions such as biting nails. Removing food from teeth, placing hands on the mouth are considered rude.

Malaysia is a combination of various cultures of China and India as well. However, there are certain similarities and differences between the two. Malaysia is a multicultural society where multiple religions are allowed and encouraged. There are certain inherited customs and traditions, which are blended with the foreign culture. Approximately 50% of the population in Malaysia is Malaysians, the rest comprising of Chinese, Indian and others (Warner, 2014).

Therefore, Chinese, Indian, English, Indonesian and Thai are the majority of the languages, which are spoken. The Malaysian way of Business comprises of diplomacy, politeness, negotiation, sensitivity, understanding and compromise (Wild et al., 2014).

The business structures are hierarchical, information flows towards the top, and decisions are generally taken by the senior management. Meetings can be lengthy and usually begin with the small talk. Generally, initial meetings are focused on non-business issues.

Unlike the Chinese, meetings in Malaysia start later than the prescribed time and last longer than intended (Kleinman & Lin, 2013). There should be flexibility in work schedules.

Since the place is a hybrid of all cultures, gifts exchange and other activities must be sensitive and thoughtful. It is very difficult for the Malaysians to use the word `no` and therefore, consideration should be given to their constraints.

Hence, China has a strict culture on the other hand; Malaysia has a diverse and flexible culture. While doing business in China, the Malaysians should see to it that all Chinese cultures are adhered to.

Geert Hofstede developed a framework for cross-cultural communication named the Hofstede's cultural dimensions theory. The theory explains the impact of the culture of a society on the values and ethics of its members (Taras, Steel & Kirkman, 2012). It also analysis how these ethics are related to behaviour, using the structure which has been derived from factor analysis. The theory consists of five dimensions:

• power distance (strength of social hierarchy)
• individualism-collectivism
• masculinity-femininity( Also known as Achievement versus Nurturing)
• uncertainty avoidance
• Long term-Short term orientation (task orientation versus person-orientation)
• In 2010, Hofstede added a sixth dimension called indulgence versus self-restraint.

Hofstede`s work is often drawn upon by consultants and researchers in various dimensions relating to international business and communication. The theory has been used as a basis for various fields like psychology, and international management (Minkov & Hofstede, 2012).

The dimensions of culture are given below:

• Power Distance (PDI) – This dimension is the measure of extent to which the people in the organization with less power will except and accept power to be distributed in a different manner. The rank of China in this index is 80, which is extremely high. The interpretation of this is that there exists a vast difference between the powers of the senior management but that is acceptable and normal.
• Individualism/Collectivism (IDV) –This is to identify the mentality of the people whether they consider `I` or `we`. The culture in America is focused on `I` which means people there are focused highly on themselves and their careers (Minkov & Hofstede, 2012). China on the other hand, ranks 91 on this dimension which means they have a collectivistic mentality and think more about the group`s interest rather than the interest of an individual.
• Masculinity/Femininity (MAS) (Achievement versus nurturing) – The rank of China is 66 in the MAS Index. This means that they are driven by competition, achievements and success. The Chinese often place work before other responsibilities (Hofstede & Dimensions, 2012). This has been portrayed by the fact that Chinese workers and laborers leave their families behind and work for eleven months out of twelve.
• Uncertainty Avoidance (UAI) – China ranks 40 in this dimension proving that they tend to accept situations, which are ambiguous rather than being deterred by them. Although the Chinese are bound by many rules and regulations, to avoid such situations, however, where the problems arise, they are willing to bend these rules if the situation demands for it. The Chinese language is also very ambiguous and difficult to interpret.
• Long-term/Short-term Orientation (LTO) – China ranks high in this dimension with a score of 118, which means that they focus on perseverance and persistence. They are extremely dedicated and hardworking. They tend not to get affected by the time required to achieve those goals (Minkov & Hofstede, 2012). This dimensions truthfulness is portrayed in the time consuming negotiation by the Chinese and the time taken in building long-term relationships and trust.
• Indulgence vs. Self-Restraint- According to the sixth dimension, Indulgence societies allow relatively a freedom in gratification of instinct and desires relating to the enjoyment in life. Whereas Restraint societies on the other hand Restraint societies believe that, these restrictions need to be limited and regulated by a set of strict rules and regulations. China as a culture is often described as strict and restrained.

Each countries cultural dimension is often embedded in the country`s culture and difficult to understand unless one is brought up and raised there. The culture of China needs to be analyzed properly before entering into any contracts with company in the nation (Mazanec et al., 2015). A misunderstanding of these can damage any kind of relationships with the Chinese.

Why analyze China: International Business Perspective

Conclusion

Therefore, from the discussion it can be said that when expanding in another country, a deep understanding of their cultural environment is essential. These cultural aspects often tend to play a crucial role in the success of a business relationship. China retrieves its culture from the ancient times with the advent of the Chinese civilization China`s culture is restricted by norms and regulations.

They have certain standards of communication, meetings, gifts and dealings. They do not believe in gender roles but are in the favor of power and position. These norms and regulations need to be respected when dealing with the company belonging to China. From the Hofstede`s cultural dimensions analysis it could be seen that although the Chinese are restricted and norms-policies oriented, they are hardworking and persistent. Hence, all business activities must be sensitive to their culture.

References

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