SUMMARY:
China is a very popular country lately, as it has become a superpower due to its mass production. This country is leading production thanks to its huge population which is stimated around 1.300 billion; the most populated in the globe. Besides this, China is also the fourth biggest country,and the fourteen boders with other countries benefits it for international trade. Altough this is abig country, its most important cities are: Shanghai, Hong Kong and Pekin. This superpower has also enjoyed of benefits while sighning significant treaties to its internationalized economy, for example the one with the United States as most favored nation, which lets products in as if they were american.
In terms of management style, China always tends to the directive, subordiantes wont question superiors because it would be disrespectfull. The manager is the top figure and loyalty and obidience is expected, but he should also worry about his workers; it would be a two way benefit relation. In order to do business with the Chinesse you should follow an specific sequence of steps. First, preparation because most of the times the person with more tittles is not the one who negotiates, also take with you plenty of business cards. Second, use an interpreter and remember to be patient. And last but not least, we have gifts, giving corporate gifts is a tradition for this culture, make sure they are not in terms of money.
To contrarest this style I will compare it with the management style of Bangladesh, in this country they have a conservative style. They are respectful and like doing business with familiar people, their system adopts a hierarchy type. Bangladeshis have a low risk profile, and take desicions based in concrete information. Based on this, negotiations with this culture are slow because they need to build trusty relationships. They ask for flexibility in prices and terms but so can the other part do the same.
To conclude, we can see how these two countries can have simmilarities and differences in negotiation terms. The good thing about both is that they provide a cheap hand labor and mass production. one thing would be easy negotiation with the chinesse and the other part would be having good quality products with the bangladeshis, specially in clothes they have an expansive line of experience. After analysing each style of management a company can decide which country can serve better their requirements.
Watch this related video on chinesse management style:
QUESTIONS:
1) Discuss the relevance of Guanxi and the existence of chinesse business networks as supporting factors to the internationalization process of chinesse companies.
A Guanxi relation is important because for international matters this is the ideal relation. Guanxi is a friendly relation, where there exists trust, cooperation and harmony. In order to achieve this state people should be loyal and responsible, to build a good ¨face¨. For chinesse this term is very important because it reveals the honor of the person wich is a essential aspect in negotiations. If you wanna keep the business negotiations with the chinesse you should also maintain the good relationship, wich is a primary requirement for them.
Guanxi relations part from two terms: the vertical and the horizontal.
Vertical Guanxi is to form good relations between managers and employees. This should cover the proper functioning of their oragnizations in the inside part. The other type of relation is the horizontal, which is business outside the organization but also in negotiating terms. Are ment to build good relations with partnership and trust.
In other words this type of relation seems essential when we speack in negotiation themes, but ofcourse these vary depending on the country you are dealing with. Its important to mention this because not all cultures have the process of close relations within its international business partners. And when you are dealing with close cultures which have no interest in a different relation than the one of business, the Guanxi relation will be harder, or in the worst conditions fail. But on the other hand, if you are the interested person in getting business with the chinesse it would be foolish not to have in consideration the Guanxi relation. Its clear that to be able to have successful negotiations with them you need to build relations based on the Guanxi tradition.
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