Guanxi In Jeopardy

Let me start this baptistry study with a excerpt from the case: »The conflicting impression is that the Chinese act as if they are in the drivers seat.« After care wide-cuty reading the case of the failed joint venture negotiations amid Electrowide and Motosuzhou, it seems obvious that in identify to succeed in a global economy, Electrowide would need to settle down production in Asia the fastest growing economy. So, Chinese companies and so are »in the drivers seat«, meaning that the foreign companies, which neediness to enter the Chinese market, nurse to adapt to their culture in order to succeed there. Not only have to foreign companies try to adapt to the Chinese culture, but they also have to fully understand it.

This is obviously not the case with the Electrowides climb to the joint venture negotiations with Motosuzhou. Electrowides three-person team to carry out the confinement of purusing a JV with the Chinese counterparts has a shortage on three areas: 1) transaction skills (none of them have degrees that would aid in planetary business relations), 2) language skills (only Ms. Morgan spoke conversational Chinese, but traditionalistic Chinese society is male-centered, so her Chinese can be of little help) and 3) intercultural competence. The latter plays an especially important role in the failure of the negotiations.



There are a few differences between the American and the Chinese culture, which Electrowides negotiation team did not get wind into consideration. Electrowides team was not mindful of the Chineses polychronic time. EW allotted specific time slots specifically for business negotiations. Motosuzhou, the host company, maintained a polychronic schedule. Planned meetings do not allow Guanxi to flow freely, therefore the company regularly call off them. Mr. Sherman presented Motosuzhou with a written contract. This greatly offended Ai Hwa reprimand who later cancelled negotiations. Chinese culture is high-context and prefers verbal communication. withal Mark Porters...If you want to get a full essay, order it on our website: Ordercustompaper.com



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