International Business Management: Opportunities, Risks, and Negotiations in the Chinese Market

This study discusses the representation of the US Corporation in the Chinese business market, the opportunities, problems and the negotiations that the rubber tire business will be facing in the new business market of China. It also describes the market entry strategies for the business and the roles of the Chairman, Vice-Chairman, Treasurer and Secretary of the organization.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
INTERNATIONAL BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author note

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Introduction
This study discusses the scenario regarding the representation of the US Corporation in
the Chinese business market. The study describes the opportunities, problems and the
negotiations that the rubber tire business will be facing in the new business market of China.
This study also describes the market entry strategies for the business.
Chairman
The three major roles of the management are:
Interpersonal role: The Chairman is required to perform the interpersonal roles of the manager
that is by remaining concerned with the interactions among the people within the organization.
The Chairman is required to figurehead that is by performing the activities involving the
ceremonial and the symbolic nature and this functions mostly includes the functions that involve
the employees (Mencl, Wefald & van Ittersum, 2016). The chairman is required to play an
effective leadership role by leading the subordinates and motivating the employees. The
Chairman is required to play the liaison role that is serving the connecting link between him and
the outsiders.
Information role: The chairman should monitor the business operations by collecting
information that affects organizational activities. The Chairman should distribute the information
by playing the role of disseminator. The Chairman should play the role of the spokesperson for
representing the organization by interacting with the outside suppliers and other agencies in
society (Mencl, Wefald & van Ittersum, 2016).
Decisional role: While entering in the new business market the Chairman should play the role of
entrepreneurs for assuming the certain risks in the business for determining the risks the
organizations might face in the business market. The role of conflict handler should be

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performed by the Chairman for taking care of the certain disturbances that might take place in
the business market (Maine, Soh & Dos Santos 2015).
The mode of entry in the business market is quite attractive for the business companies as
the economic growth and the rising income of the business attract most of the foreign companies
to enter into the business market (Hofer & Baba, 2018). The business should enter the business
market by determining certain factors. The Chairman will determine the foreign trading
corporations, the industrial trading companies, independent trading companies, direct end-
user sales. By determining all these strategies the Chairman would run business in the new
business market (Verbeke et al., 2018).
The Chairman should determine such entry strategies as it is quite hard for any marketing
companies to enter the business market for running a business in the new business market. The
chairman, therefore, found that the business will enter the business market via Hong Kong
distributor, and also by exporting via Direct channels in China and would set up a joint venture
for entering the business market (Deresky, 2017).
The business will be following the transformational leadership as mostly cultural
hurdles are found out in the business. The transformational leadership mostly look forward to
creating a high-performance workforce that has become increasingly important and this enables
the organizational members to go beyond the task requirements (Hamilton & Webster, 2018).
Vice-chairman
The political, cultural, environmental and the economic risks that the business will be
facing are:
Political risks: The political condition in China is not stable for doing business over there and it
is found out that the corruptions have become an issue of the communist party of China’s

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policies and institutions and the norms have recently clashed with the market liberalization (Noe
et al., 2017).
Cultural risks: The cultural risks in China is that cultural understandings are always an issue for
the business in the Chinese business market.
Environmental risks: The new business entering in the Chinese business identified the
environmental risks that is the environmental conditions are constantly degrading. For
these the Chinese Government has invested a lot for bringing alternative energy sources,
water treatment plants, pollution monitoring and the mitigation equipment (Mencl, Wefald & van
Ittersum, 2016).
Economic risks: The economic condition of the country is becoming stagnant so it is becoming
a great risk for the economic conditions to deal with stagnant economic condition. The economic
stagnation generally affects the business as if there is no economic growth in the business market
then it is of no use in entering a new business market.
The business would operate by following the marketing strategies for entering the
business market and are require to set the business operation process by following the rules and
regulation of operating business in the new business market (Noe et al., 2017).
The staffs those are fully observed to have effective leadership skills, they will become
team leader for managing the team and the tasks will be allocated as per the expertise of the
employees, this will make the business operation more efficient.
The Vice Chairman will select the manager based on the following factors:

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 The Vice-chairman will look after the problem-solving cluster skills which involve
conceptual thinking, innovative thinking, and strategic operations.
 The interpersonal influencing characteristics will also be followed for selecting a
manager. This characteristic will involve impact and influencing characteristics of the
person, the listening, understanding and the responding skills will be identified as well.
 The leadership characteristics will also be followed for identifying the manager of the
organization (Chetty, Karami & Martín, 2018).
 The Vice Chairman will choose the manager based on the personal and the corporate
skills for the business.
Secretary
The opportunities and strengths are that the Secretary determines for doing business in the
Chinese business market.
 Economic growth is high in the Chinese business market that mostly attracts foreign
business.
 The population rate is high in China that ensure a great number of sales for the business.
 The major opportunity that the business faces is that cheap labor that ensures the business
will get the right pool of labor in the business.

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Source: National Bureau of Statistics of China
The cultural issues that the secretary faces while dealing with the team are that the
secretary are required to find out the cultural values of the different member, the subject matter
needs to be interpreted as per the cultural values of the member. Therefore the cross-cultural
event should be introduced in the company for reducing such problems.
Some of the protocols and etiquette that the business will follow will be based on the
Chinese Human right acts and the Human right codes. The secretary should maintain the
business operation by looking after the various issues of any type of harassment in the working
place. The secretary should also deal with political issues by running the business as per the
business policy (Surdu, Mellahi & Glaister, 2018).
Treasurer
The foreign trade issues that the treasurer will have to deal with the issues like primary
exporting, unfavorable terms of trade, mounting developmental and maintenance imports, higher
import intensity, lack of coordination, depleting foreign exchange reserve and import covers and
steep depreciation.
The treasurer will look after the foreign entry determinants that is the entry of any
foreign business in the Chinese business market, the industrial trading companies, independent
trading companies, direct end user sales (Surdu, Mellahi & Glaister 2018). The major
fundamental strategies that could be used by the treasurer for entering the China market that is
exporting via Hong Kong distributor, exporting via direct channels in China and by developing
the joint venture.
The five stages of negotiation that the treasurer are going to prepare for the business on
the international level are

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Prepare: Identifying the potential value and the treasurer should begin to understand the
interests and require developing the fact base.
Information exchange and validation: Discovering and developing values, the treasurer should
assess interest and build rapport and trusts.
Bargain: Developing the distribute values and addressing the interests and managing
concessions
Conclude: The treasurer is required to capture values and confirm interests that could have been
met.
Execute: The treasurer is required to expand the values and address the changing interests and
could strengthen the relationships.
The treasurer might find out the political issues that the country are comprised of
corruptions thus this might affect any running business in China. The environmental problems
like soil erosion might affect the business and the economic risk that the business might face is
that for meeting the requirements of excessive population rate (Lasserre, 2017). The cultural
conditions are not stable in the business market that affects the working places of the business
(Weller, 2018).
The manager will handle the negotiation conflicts by accommodating strategy that
essentially entails giving the opposite side of the subject. The manager will try to collaborate and
compromise for avoiding negotiation conflicts (Shen, Puig & Paul, 2017).
Conclusion
Therefore from the above solution, it can be concluded that every foreign business is
attracted to enter the Chinese business market. The economic growth is high in the Chinese

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business market and not only that the labor cost is also very cheap in the country. Moreover,
population growth creates a great opportunity for foreign business. This study determined that it
is beneficial for the business as the business market provides high economic growth and along
with the political risks the business also enjoys various political opportunities. The business
would also run the business operation in the cost effective process as the labor cost is lower in
this business market. This study also determined the role of the Chairman, Vice-Chairman,
Treasurer and Secretary of the organization.

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