Table of Contents 1. Introduction..................................................................................................................................1 Reference.........................................................................................................................................5
Topic :-“Intercultural competence of foreign companies operating in China” 1. Introduction Intercultural competence can be understood as scope of psychological feature, emotional, and behavioural accomplishment which helps business firms in doing communication in an appropriate manner with the other companies or members who are following a whole antithetic culture(Briscoe, Tarique and Schuler, 2012). On the other hand, China's culture is being stated as 5000 years old where most of Chinese people do follows Confucianism, Taoism and Buddhism. It has been located that economy of China always stayed at a booming position and can be stated as sort of magnet for foreign companies who are looking forward to expand their business so that to enhance profitability. China is a developing economy which is one of leading country over the world; itsa magnet for foreign investors. Its a multi racial nation which consider 56 ethnic groups. In order to gain sustainable development, all economies are joint hand together for developing a great cultural of China and also boom up its economic development. In this aura, international business associations found China is a beneficial and wealth generated country due to its high population, however there are certain cultural changes which are taken into consideration so as to avoid misunderstandings, disputes and substantial costs to the organisations. The report has stated that many foreign companies are willing to do their business in china so as to accomplish high competitive edge (Jiang and et. al., 2011). German are directed express their views and opinions whereas Chinese people tend towards feel some kind of hesitation while giving their views. There are several benefits to do business in China as it can ensure success of international business venture as well as improve economic growth of the nation and business cultural also. It 1
will also provides clear understanding of cultural of the country and recognising all internal and external factors which will affect foreign companies in direct and indirect manner. According to Fang and Faure, (2011), there are ample number of problems which can be faced by foreign companies who are trying to expand their business in China. Here, it has been critically analysed that the major problems that can be faced by alien firms in China is culture, technology, laws and language. If German companies like Deutsche Bank, Bosch are looking forward to expand their business in China it is may be possible that they may face issues because GermancultureistotallydifferentfromChina.Alongwiththis,legislations,rulesand regulations that has been made by government of China stays strict for alien companies which can be stated as another issue that can be faced and may put impact on decisions of managers and leaders of these organisation.The thesis is based upon how intercultural differences can affect business growth and success of the foreign companies so as to gain high cutting edge. The concept of joint ventures has also raised in this present scenario, it helps in growth and expanding business at global level (Tian and Borges, 2011). Along with this, while doing businesses in other countries like- language barriers, needs and wants of customers, climate changes etc. at this time firms are required to analyse these factors so as to make necessary business decisions. Normally the companies have their own objectives which will be different than the JV objectives. Imbalance in levels of expertise, assets andinvestmentswillleadtoapoorintegrationandco-operation.Differentcultureand management styles will also lead to poor performance and co-operation. There are several cross cultural training programmes should be provided to businesses as they can doing business in China; it increases awareness and understanding towards the cultural of the nation. Along with this, in order to ensure stumbling blocks of the cultural it is essential 2
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for foreign investors to ensure about developing strategies so as to attain future benefits by reducing all differences. While locating into different aspects current thesis is an academic document where topic is “Intercultural competence of foreign companies operating in China” which is being made through following steps. Current situation in china is filled with ample number of problems and under descriptionabout the topic which has been chosen for entire study. It provide more and relevant information to readers as they can know what is going to be explained later. In this present study, readers will get aware about cultural differences which can affect foreign companies investment in China. The report has stated corporate cultural of china. After that,report will also show proper description of viewpoints of different authors and writers who have studied on the same area of the concern previously (Kankaanranta and Lu, 2013). It helps researcher to accomplish relevant data and information about the chosen topic. 3
German cultural is totally different from China thus it is essential for nations to understand the cultural of an economy so as to do business at there in an effective manner. Although, Germans are little bit more individualised in comparison with Chinese people. Maybe that is why the depression rate in China is very low since few people have the chance to shut interaction with other people easily.It describes several methods which are getting used while doing a thesis so as to arrive better conclusion in the best possible manner. For doing this research, there is used qualitative research method so as to get more relevant and effective information. In addition to this, qualitative data assists in getting making entire thesis in the best possible manner and arriving towards better outcomes. It involves evaluating the data and information which has been gathered by the company or researcher so as to make imperative research. Findings are based upon customers' viewpoints and opinions of customers. According to this research, it get analysed that Chinese economy is developing day by day which opens door of success for future business organisations. Along with this, understanding the cultural environmentofanationiscrucialtogethighmarketgrowthandsuccessofbusiness associations. Cultural is essential and describe various differences towards the living standards of people (Jiang and et. al., 2011). Variableculture and different management styles will lead to dissolution of the venture. Thus, it can be said that intercultural differences always affect decision making process of companies and helps them in re4solving business problems as well (Bücker and et. al., 2014). Therefore, it is necessary for investors who wants to invest in China economy needs to recognise all those factors which have vast impact on market growth and success of the company. 4
Reference Books and Journals Briscoe, D., Tarique, I., & Schuler, R. (2012).International human resource management: Policies and practices for multinational enterprises. Routledge. Fang,T.,&Faure,G.O.(2011).Chinesecommunicationcharacteristics:AYinYang perspective.International Journal of Intercultural Relations,35(3), 320-333. Bücker,J.J.&et.al.,(2014).Theimpactofculturalintelligenceoncommunication effectiveness, job satisfaction and anxiety for Chinese host country managers working forforeignmultinationals.TheInternationalJournalofHumanResource Management,25(14), 2068-2087. Birkinshaw, J., Brannen, M. Y., & Tung, R. L. (2011). From a distance and generalizable to up closeandgrounded:Reclaiming aplacefor qualitativemethodsininternational business research. Jiang, C. X. & et. al., (2011). Effects of cultural ethnicity, firm size, and firm age on senior executives’ trust in their overseas business partners: Evidence from China.Journal of International Business Studies,42(9), 1150-1173. Kankaanranta, A., & Lu, W. (2013). The evolution of English as the business lingua franca: Signs of convergence in Chinese and Finnish professional communication.Journal of Business and Technical Communication,27(3), 288-307. Tian,K.,&Borges,L.(2011).Cross-culturalissuesinmarketingcommunications:An anthropological perspective of international business.International Journal of China Marketing,2(1), 110. Moran, R. T., Abramson, N. R., & Moran, S. V. (2014).Managing cultural differences. Routledge. 5