Preview

Modes of Entry, Cross-Cultural Factors, Country Risk Analysis for China

Powerful Essays
Open Document
Open Document
5948 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Modes of Entry, Cross-Cultural Factors, Country Risk Analysis for China
Shawn A. Drake
Global Business
Modes of entry, cross-cultural factors, country risk analysis for China
18 December 2011

Abstract:
For this paper I will identify and assess at least two modes of entry into the country of China. This paper will be based on prior learning and discussions in our class. I will examine the most appropriate mode of entry for a product or service into China. I will look at cross-cultural factors relevant to doing business in China. Lastly, I will address how these factors affect organizational structure, modes of management, staffing, recruiting, training, compensation, and expatriate policy.

Table of Contents
1. Modes of Entry into China
2. Chinese Society and Culture
3. Organizational Structure
4. Modes of Management
5. Recruiting Expatriates
6. Recruiting Chinese Nationals
7. Recruiting Chinese overseas
8. Recruiting Chinese returnees
9. Retention Strategies
10. Conclusion
11. References

MODES OF ENTRY INTO CHINA
In order to do business in China, one must start by looking at the modes of entry into China. This can be by a variety of methods. I will start by listing these below with a brief description of each.

Trading Companies and Local Agents: Beginning December 11, 2004, foreign companies operating in China will be allowed full trading and distribution rights. This is because of China's accession to the WTO. With careful selection, training and constant contact, US firms can obtain good market representation from a Chinese trading company, many of which are authorized to deal in a wide range of products.

Representative Offices: These are the easiest type of offices for foreign firms to set up but the law in regards to performing 'liaison' activities limits them. They cannot sign sales contracts, directly bill customers or supply parts and after-sales services for a fee.

Chinese subsidiaries: A locally incorporated equity or cooperative joint venture with one or more Chinese partners, or a wholly

You May Also Find These Documents Helpful

  • Powerful Essays

    China has the largest population in the world, and has the largest market to the international business. So China reasonably becomes the focus of the international business. There are different business rules in different countries because of various cultures. China is a traditional country, which deeply affected by Confucianism. The foreigners who want to do business with China, should be familiar with the dominant social institutions , beliefs and values in China. Because the operation of business systems is controlled by all kinds of rules, especially by some informal rules. In this essay, i will identify some rules which govern the operation of business systems in China from the essence of formal and informal rules. In the first section formal rules such as laws will be clearly stated , and some informal rules will be discussed from socio-cultural practices.…

    • 1369 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    China Fdi

    • 7727 Words
    • 31 Pages

    Lin, H. (2000). Choice of market entry mode in emerging markets: Influences on entry strategy in China. (Vol. 14, pp. 83–109) International Business Press an imprint of…

    • 7727 Words
    • 31 Pages
    Powerful Essays
  • Satisfactory Essays

    MERER

    • 352 Words
    • 2 Pages

    Enter the China Market Entering Chinese Business-to-Business Markets: The Challenges & The Opportunities A White Paper by Mark Hedley of B2B International E-mail Web Blog info@b2binternational.com www.b2binternational.com www.b2binternational.com/b2b-blog/ INTRODUCTION page 1 The challenge of ChinPremium 3952 Words 16 Pages…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    References: Alon, I. (2003). Chinese culture, organizational behavior, and international business management. Praeger: Westport, Conn.…

    • 2423 Words
    • 9 Pages
    Best Essays
  • Good Essays

    References: Eu SME Centre (2011), Processing trade in China. Available from: http://www.eusmecentre.org.cn/content/processing-trade-china [Accessed: July 2, 2014].…

    • 653 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    References: Boonthanapibul, C (2010). Doing Business in China: Cultural Factors, Start-up Concerns, and Professional Development. Retrieved from http://www.bu.ac.th/knowledgecenter /executive_journal/july_sep_10/pdf/aw26.pdf…

    • 4308 Words
    • 124 Pages
    Powerful Essays
  • Satisfactory Essays

    Chinese Market Entries

    • 378 Words
    • 2 Pages

    Use the internet to identify and communicate with appropriate trade corporations in China or their own governments embassy in China…

    • 378 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    would like to study the problem of the cross-culture management and the Causes of problems. and then…

    • 3034 Words
    • 11 Pages
    Best Essays
  • Satisfactory Essays

    • China’s rapid economic growth offered many opportunities as well as many challenges for foreign firms trying to integrate themselves into the Chinese banking sector.…

    • 547 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    With its booming economy, huge manufacturing base, enormous supply of natural resources, and expanding consumer spending, it’s no surprise that China is high on the agenda for businesses around the world. More than 90 percent of multinational companies say that China is important to their global strategies, with 52 percent calling it critical (Marsh, 2006). In the past decade, China has been growing at an extremely rapid pace resulting in a huge increase in the number of middle class consumers creating many opportunities for foreign companies. However, along with the opportunities from doing business in China, risks occur and as a result do foreign companies face different challenges when they invest in China.…

    • 4291 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    Establishment of operating subsidiaries in other countries. Many require a local partner in order to authorize the establishment of foreign corporations.…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Investing in Foreign Country

    • 3365 Words
    • 14 Pages

    This report aims at discussing the project of investing in China. Our company is a British multinational company in household goods and home furnishing industry whose bedding products are popular. We are planning to invest in a foreign country and China is a good choice. While doing business in China, cultural difference would be the first problem that company have to face. The report examines the cultural difference between the United States and China in five respects: the language differences, unique and accustomed customs, gender difference, mode of thinking and values. Furthermore, the issues that are likely to arise in the foreign country in two functional areas will be mentioned. In the marketing area, entry mode, meeting the need of local market and competitive power are the main point to be analysed. In the human resource management area, three points referred: different personalities of employees, making employees meet the working requirement and raising working enthusiasm. After the analysis, a conclusion can be safely given that considering cultural difference issues roundly helps to solve the problem s of marketing and human resource management. Recommendations for the first part are: 1) Entering Chinese market with a joint-venture mode 2) Transferring some Chinese employees to the England and offering some training program 3) To hold seminar meeting regularly 4) Creating a new manufacturing line of furniture specially in Chinese market. Recommendations for the second part are: 1) To determine a suitable entry mode 2) Doing some wide-range researches. Recommendations for the third part are: 1) get familiar with the nature of the local labour 2) Socialization 3) Training 4) Compensation and rewards 5) Stock option plans…

    • 3365 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    The increase of foreign direct investment in China has resulted in the presence of a number of Western expatriates working in Sino–foreign joint ventures. These expatriate managers have to make things work in absolutely new settings. Therefore, without cross-cultural trainings, they may have very stressful experience in China. Understanding of the Chinese culture and Chinese society may ultimately save much frustration and money. With our thesis therefore we would like to explore how companies manage training processes before sending expatriates to China, and prepare them for further knowledge transfer to the employees in China. This has lead us to the following research question: “How do the Western companies manage process of sending expatriates to China?” The research is based on the experiences of three companies: IKEA, Texol Technical Solutions and NCR and demonstrates possible means that can be engaged by the companies to facilitate adjustment processes of their expatriates in China. The empirical data were gathered from interviews with managers from the mentioned companies. In order to analyze our empirical findings we present literature that was structured as follows: Training in the international context, training in the Chinese context and communication between expatriate and local employees. Both the literature review as well as our empirical data with analysis aspire to provide the reader with an in depth study of the importance of the selection of the right candidates and the provision of trainings, as it can help both to understand the unique Chinese cultural and…

    • 36923 Words
    • 148 Pages
    Powerful Essays
  • Best Essays

    In this paper I have discussed the differences in the business and consumer markets of China and…

    • 2728 Words
    • 11 Pages
    Best Essays
  • Best Essays

    Eu Yan Sang Report

    • 4533 Words
    • 19 Pages

    We first will identify the operating model in China and analyze challenges it faces in entering the Chinese market. We will also compare the Eu Yan Sang’s China business model with that of other countries, highlighting some of the…

    • 4533 Words
    • 19 Pages
    Best Essays