Culture & Business: Australian Organisation Venture in China-MGT205

This report provides a detailed analysis of the challenges and opportunities faced by an Australian organization specializing in English language education as it ventures into China. It includes a PESTLE analysis covering political, economic, social, technological, and legal factors relevant to the Chinese market. The report also examines management practices prevalent in China, highlighting the need for partnerships with the Chinese government and the adaptation of Western management customs. Furthermore, it discusses the skills and abilities required for expatriates to succeed in China, such as overcoming linguistic barriers and implementing smart marketing strategies, while also emphasizing the importance of understanding Chinese culture and traditions. The report concludes that establishing an English-speaking school in China can be a viable business venture, given the increasing demand for English language skills.

Foreign Culture Presentation Reports

Executive Summary
The below project has provided in details about the different problems as well as the
advantages that are faced by the Australian organisation venturing into China. The
organisation is an example of an organisation that specialises in teaching English to the non-
English speaking areas of the world. In nutshell, the company promotes English and aims at
adopting all the steps that may be useful for the purpose. Proper as well as effective political,
economic, social, technological and legal analyses have been carried out for the purpose of
analysing the different political, economic, social, technological as well as the legal factors.

Table of Contents
Introduction................................................................................................................................4
A general description of the culture...........................................................................................4
Specifics of the political, economic, technological and legal environment as relevant.............5
Management practices prevalent in the culture of China...........................................................7
Skills and abilities that expatriates need in order to be successful in the culture of China.......7
Other Specific Details of the Culture.........................................................................................8
Conclusion..................................................................................................................................8
Reference List............................................................................................................................9

Introduction
The report discusses various theories and models of social integration mechanism in working
within an alien culture with the expansion of an establishment like opening up Disney land
Theme parks outside the United States. A business venture of opening up a school in Beijing,
China for helping the populace there to learn English may not be analogous to the scale of
business of opening up a Disney land Theme park outside the United States, though. Yet it
would have gone through the same processes of opening up an Australian Business outside
Australia, in a predominantly non-English speaking country like, China. Besides, the
managers and employees working in new business location, which is China in the case under
discussion in the current report, needs to know the culture of China. Besides, analyses
political, economic, social, technological and legal would have been helpful to make
important business decisions about opening and running business in China. Knowledge of
management styles and culture in China would also help the Australian expatriate in China
about establishing and running business thereof. Australian expatriates may also find the
knowledge of Chinese Language and adroit marketing aptitude helpful for foraying into
Chinese market. How additional knowledge of the destination country can help expatriate
Australian managers in China has also been discussed in the report.
A general description of the culture
At present Chinese Culture has become very receptive. It seems enthusiastic enough to accept
and accommodate worldwide cultural presentations. Especially, it has adapted to new
balanced Yin Yan formula for adapting to westernized culture and life style. Erstwhile, China
was very unfriendly and closed for western and all other oriental cultures. Even after its
defeat in Opium war, China has been largely reluctant to know the ethos the British
(Feinberg, 2015). However, after gradual liberalization of Chinese nation, which started since
late seventies of the twentieth century, China has started exchanging its cultural hues with its
oriental neighbors and western business partners. It has been more open to western culture
compared to oriental cultures in the beginning of the liberalization and cultural exchanges.
Chinese culture has been among the oldest inheritances of the world. It has been marinated by
diversity and variety, which is 5000 years old. It has been depicted in several artistic
traditions in painting, scientific discoveries like gunpowder paper, printing technologies and
calligraphy. The ancient Chinese traditions have been enshrined in its age old potteries,

sculptures and sericulture products. As a sum of all, China as bestowed the world with
gunpowder, paper, silk and many initial objects of modern human civilization. Moreover,
China has given the world greatest religious philosophies like Taoism, Confucianism and it
has played a pivotal role in preserving and propagating Buddhism in the world. The Chinese
inheritance of social hierarchy has been propagated through its Confucian ideologies.
Confucian ideology is still enshrined in the core of Chinese culture.
Specifics of the political, economic, technological and legal environment as relevant
FACTORS CHINA
Political  Legal systems to limit of the official ability and innovatory
excesses have been urbanized by the Chinese government.
 In the present years, disturbances have happened in China that has
produced the unbalanced circumstance for overseas organizations'
venture in China.
 The Chinese Government has engaged strict methods to put off
and discontinue the state of affairs that produces a safe
surrounding and environment for overseas shareholder and
investors (Schaltegger et al, 2017).
Economic  The Chinese management has accepted a more practical thought
on a lot of socio – economic and political troubles and
consequently the role of principles in the economic strategy and
policy have been partially abridged.
 China has changed its economy into the market familiarization that
has a positive influence on the world including China.
 Over the past 2 decades, some economic reorganization in China
has been put into practice and has overpoweringly exaggerated
both entrepreneurship and individual proposal.
 The deficiency has been considerably abridged and the regular
earnings have arrived at the highest level.
Social  China is very apprehensive concerning its populace growth and
has made efforts with assorted results to put into practice a severe
confinement restraint policy, with a population, legitimately over
1.3 billion and an approximate enlargement rate of 0.494%

 As per the 2009 outcrops from the U.S. Census Bureau, the
Chinese populace will reach a height of around 1.4 billion by the
year 2026.
 The goal of the Chinese Government is to alleviate the populace in
the first part of the 21st century. It can be stated that China has a
huge populace that provide to the market a generous labour force,
which is an occasion for several organizations to develop its
business and commerce in China.
Technological  Many districts for ultra-modern development have been
recognized for investigating and initialising technical functions.
 For instance, in 1996 the Silicon Valley was constructed with a
huge investment in the infrastructure construction.
 Until now there have been just about 17,000 ultra-modern ventures
functioning in those districts, with the workforce more than 2.2
million.
Environmental  Alongside China's rapid manufacturing expansion are the grave
pessimistic impacts on environment that comprises growing
pollution and lessening natural resources (Atighechian et al, 2016).
 In the year 2007, China became the world's major emitter of
carbon dioxide and other harmful gases that lead to greenhouse.
 WTO carried out a report on the eminence of air in 272 cities
globally and states that the most populated seven cities out of the
ten cities in the world were in China.
 Into the bargain, depending on China's own assessment, they
stated that two-thirds of the 402 cities are severely or moderately
polluted in China.
 Consistent with an environmental report, there is water pollution in
approximately all of the rivers of the country to some extend and
half of the populace does not obtain fresh water on a daily basis.
Legal  In order to persuade foreign companies to invest and do business
in China, the Chinese Government has progressively set up a
comparatively absolute law arrangement.
 In the year 1979, The Law of the People's Republic of China on

Chinese-Foreign Equity Joint Ventures was made available.
 The Chinese government has also broadcasted and issue a chain of
laws and rulings about the operation, establishment, termination
and insolvency of foreign-invested ventures (Pestle et al, 2014).
Management practices prevalent in the culture of China
The government of china has made several policies and laws, which states that any
organization that plans to set up a new venture in China need to form a partnership with the
government of the Country. As per the policy of the government, the company will have to
provide the government of China with 51% of share in the partnership.
China’s nationalized ventures are predominantly, synchronized colossal, which are trying-out
with the Western management customs (Thomas and Peterson, 2017). The country has yet to
create an outstanding company or corporation like Samsung or GE, and external to the
country, the majority of its industry persons are best recognized for gathering capital rather
than for pioneering management designs. Nevertheless, the country proposes more
administration programmes at present than other countries.
Skills and abilities that expatriates need in order to be successful in the culture of China
Linguistic Barriers- Linguistic barriers refer to the difficulties that people or groups of
people speaking different languages experience. Very less communication happens unless
one or both the groups learn a new or common language, which necessitates a speculation of
more effort and time. People who travel to different places quite often face a lot of difficulties
because of language barriers (Feinberg, R.A., 2015. Linguistic barriers to international
marketing: Information overload in non-dominant languages. In Proceedings of the 1995
World Marketing Congress (pp. 137-141). Springer, Cham.). The Company focuses on
providing English lessons to the population of China who cannot communicate in English at
all. The target section of the company are the individuals who do not understand English at
all and people who know very little of the English language.
Smart Marketing- The term mainly indicates all the modern technologies that can be
adopted for making the whole of the marketing process an effective one. The Australian
organization can actually utilize a number of modern marketing tools in this regarded. The

utilization of the different social marketing tools can be useful. It has been estimated in the
PESTLE analysis of the section that China is a country that is readily adaptable to the current
and the updated technological changes (Cohen et al, 2015). However, the greatest
disadvantage is there are a number of social media platforms that are practically banned in
the country. So the organization needs to choose the tools appropriately for connecting with
the customers. As part of their Smart Marketing strategy, the organization can actually
organize for seminars and conferences in a few target schools of the country. They can also
organize for demo classes where learners will actually have an idea as to what are they
actually going to learn and what are the prospects of opting for these services.
Other Specific Details of the Culture
The Australian expatriate at China should better known that Chinese conventional belief is
that China sits at the center of the earth. Literally, the name of the country is means that it
belongs to Middle Earth. Further, Australian expatriates in China should know that unlike
western societies, Chinese people do not believe in greeting unknown people. Chinese king
Qin Shi Huang has preserved his entire Army in Terra Quota figurines (Schaltegger et al.,
2017). It has now become part of touring exhibitions from China. Along with The replicas of
these figurines are sold now and keeping them as souvenirs are now quite fashionable
worldwide. China has also been famous for its panda populations. China has preserved its
tradition of poetry and songs. It has also famous for festivals of flying kites and lantern. It has
made several natural resources its cultural icons. Like its jade stones and turquoise stones are
natural resources which it has incorporated in usages and cultural ethos. It has also preserved
its century old culture of martial arts practices. China has given the world tea. Though,
erstwhile Chinese values was in favor of identifying with different ethnic groups like Han,
Hui, Zhuang et cetera, now they identify themselves as Chinaman with emergence of a pan
China nationalist vibe. China has excelled in modern sports and they compete to the highest
ranks in athletic meets like Olympics. China, at present, is much more adopting to western
technologies than before. They have great tourist generators to all global tourist destinations.
Conclusion
The above project has provided in details all the factors that need to be considered by the
Australian Organisation for opening an organisation in China. It has been estimated that
opening an English speaking School in China will indeed be a useful business of the

organisation. It has been estimated that in China approximately 50% of the individuals speak
English and are actually well versed in it. The organisations main emphasis will be on the
next 50 % of the population. It has been estimated that the organisation is going to face a
number of problems. However, the political condition of China is quite subtle but problems
will be faced adopting with the cultural differences of the country. The Australians will
actually face a problem in adopting with the cultures of China. However, it has also been
estimated that the economic conditions of China is quite stable and this will actually turn to
be a boon for the organisation. China is quite advanced country and hence all the recent
technologies are easily available and are used by the country. All these factors may prove to
be extremely fruitful and beneficial for the organisation. However, the significance of the
linguistic barrier should also be noted in this regard.

Reference List
Atighechian, G., Maleki, M., Aryankhesal, A. and Jahangiri, K., 2016. Are Macro and Micro
Environment Affecting Management of Fresh Water Resources? A Case from Iran with
PESTLE Analysis. Materia socio-medica, 28(4), p.307.
Cohen, B., Ogorek, D., Oifa, S., Cattan, A. and Matot, I., 2015. Smart marketing may
improve public understanding of the anesthesia profession. Israel journal of health policy
research, 4(1), p.16.
Feinberg, R.A., 2015. Linguistic barriers to international marketing: Information overload in
non-dominant languages. In Proceedings of the 1995 World Marketing Congress (pp. 137-
141). Springer, Cham.
Pestle, W.J., Crowley, B.E. and Weirauch, M.T., 2014. Quantifying inter-laboratory
variability in stable isotope analysis of ancient skeletal remains. PLoS one, 9(7), p.e102844.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate
environmental management: Striving for sustainability. Routledge.
Thomas, D.C. and Peterson, M.F., 2017. Cross-cultural management: Essential concepts.
Sage Publications.