Q: Why did Heping rufuse the beer on the first offer? A: Because he was being modest and polite. Case Introduction(2道)
1. Eric’s different situations in opening the shop in China:
He had relatively little difficulty in locating his first shop after several weeks of paperwork, and he was open for business sonner than he had thought possible. The local bureaucrats with whom he dealt had seemed favorably impressed.
As Eric began applying for the necessary permits with the local government agencies he was met with responses such as “we ?ve never encountered this request”, or” this Procedure requires additional information”.
2. Eric’s different attitude:
Eric was optimistic about the prospect of his business. His business was quite successful in first few months. People were eager to buy his “unique” product.
After several rounds of trying to understand the official rules, Eric beacame increasingly frustrated. After all he had been able to acquire the permits to open shop. Moreover, his attempts to secure additional supply channels were as yet unfruitful. It seemed that all suppliers were “already at full capacity”, or “unsure of future resources”. Case Analysis
1. “Doing” orientation: seek to change and control what is happening
Eg: He had heard much about the red tape involved in doing business in China but felt he could handle it. 2. Collectivisim:
A. great readiness to cooperation with in-group members
Eg: Chinese are unsure of future resources, and local businessman was announcing the opening of several shops around town.
B. collectivists tend to give a higher priority to relationships
Eg: The owners of local businessman had worked through the same government agencies.
4. Individualism cultures emphasize competition among individual members to increase productivity
while collectivist culture stress group harmony and cooperation to chieve efficiency Eg: He wanted to get a jump on his new competition.
5. Decision making in a collective culture may be a slower process than in an individualist culture, but
the implementation of the dicision may it be a change in policy. Eg: This procedure requires additional information. Q&A:
1. How is Eric?s home culture influence his behavior and his business strategy?
A. “Doing” orientation—seek to change and control what is happening
Eg: He was optimistic./ He heard much about the red tape, but he still felt he could handle it. B. Individualism—coopertate with people who are not members of one?s group plus group members Eg: He had indicated his desire to use local workers and even train local managers.
C. Individualism cultures emphasize competition among individual members to increase productivity while collectivist culture stress group harmony and cooperation to achieve efficiency
Eg: He wanted to get a jump on his new competition.
2. What should Eric do to meet his business goals?
●He should have an in-depth knowledge of China?s red tape and adapt it gradually.
●He should increase the chance of cooperation with Chinese businessmen to coexist peacefully. ●When in Rome, do as the Romans do. He can use some Chinese etiquette to expand his Guan network in Chinese society.