International Management | Assignment

Running Head: MANAGEMENT 0
INTERNATIONAL
MANAGEMENT

MANAGEMENT 1
Answer 1 – Guanxi actually signifies connections, however, in relation to the business
environment, it can better recognise as relations (Zhao & Timothy, 2015). The reason to
which cultivation of guanxiwang and guanxi is important in China as the relations they are
made at the time of business can either make or break the organisation. There are various
legislations where in the absence of guanxiwang and guanxi, the organisation would go out of
business and nothing would get done. If the deal goes right, it will offer businessman a
prestige and enable for him easy access to other resources in the future. Hence, it can also be
said that cultivating both is also significant so as to adopt the inner culture of the nation.
Ultimately, it is an essential mechanism to do a long term business and achieving successful
business in China and so, with setting up in relationships would benefit to do a better
mechanism and practice in doing business in China.
Answer 2 – Rather than the rule of law, associations and personal power or connections
(guanxi), has always been the main aspect to getting things done in China. In China,
companies that play by rules and laws may also face challenges to compete as in this country,
people will not do something for free. It can also be called as bribery in other nations and
while looking at the case of DMG in Shangai, the influence of guanxi can be identified more
seemingly.
The originator of DMG i.e. Dan Mintz had no past understanding in the marketing arena and
he also had no connection in China. Though, he had maintained guanxi with the two young
Chinese and these two have linked with various people at a different level. With the help of
their links as a base of the organisation guanxiwang, they were able to develop as of the
country fastest growing marketing agencies.
The familiarity of DMG tells us of the way corporate is operated and led in China and this
methodology is differing to that of Western ethos. In China, social status and personal
connections are more significant than the law (Hu et al, 2016). To work in China, DMG
implies that culture plays an important role where Guanxi signifies to the corporate
association that is essential to firms doing business in the country. In addition, Guanxiwang
states to the relation network that organisations cultivate and both of these are necessary to
the Confucianism beliefs – honesty, faithfulness and shared obligations in dealing with others
– that operate a business in China. According to Dan Mintz, guanxiwang and guanxi are both
significant as they help businesses get outside the boundaries that confine the firm’s ability to
function effectively. It is also very beneficial when one has a business that brings a well job.