Culture, Communication, and Joint Ventures in International Business

This presentation explores international business communication within the context of Chinese culture, emphasizing the impact of Confucianism and Guanxi on business relationships. It identifies success and failure factors for joint ventures in China, highlighting the importance of agreements, alignment, development, and flexibility, while cautioning against issues like lack of finance and control. The presentation also contrasts cultural sensitivities between China and the UK, focusing on punctuality, lifestyle, communication styles, and concepts of reputation and humility. Furthermore, it applies Hofstede's cultural dimensions to compare the UK and China, examining individualism vs. collectivism, uncertainty avoidance, power distance, masculinity vs. femininity, long-term orientation, and indulgence. The presentation recommends utilizing joint ventures for market entry, leveraging local expertise and distribution channels. In conclusion, the presentation underscores the importance of cultural awareness in international business, providing insights into navigating the Chinese business environment. Desklib provides similar presentations and solved assignments for students.

INTERNATIONAL
BUSINESS
COMMUNICATION
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About this templateTABLE OF CONTENT
INTRODUCTION TO THE CONTEXT
INTRODUCE THE CHINESE CULTURE
SUCCESS AND FAILURE FACTORS OF JOINT VENTURES
CULTURAL SENSITIVITY IN CHINA/ THE DIFFERENCES FROM THE UK
HOFSTEDE CULTURAL DIMENSION: UK AND CHINA
RECOMMENDATIONS
CONCLUSION
REFERENCE
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INTRODUCTION TO THE CONTEXT
Business communication is the exchange of information between
individuals both within and outside of a firm. Management and staff communicate to
achieve organisational goals through effective business communication. Its goal is to
enhance organisational procedures and cut down on mistakes. International
communication is crucial since the Web has dissolved the borders between
countries. The world has evolved into a global society in which members must
interact in order to learn from one another and settle disputes.
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Confucianism has had a significant impact on Chinese
corporate culture. Thus, the Confucian idea of Guanxi essentially implies
the need of a connection network built on the principles of solidarity,
loyalty, humility, and politeness. Second, in both business and privacy,
China's hierarchy is entirely vertical and widely respected. Third, in order
to safeguard individual reputations, influence, and dignity, Chinese people
will be cautious about saving face.
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INTRODUCE THE CHINESE CULTURE

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Chinese people prefer to form long-term connections rather than
negotiate contracts. Failure to establish a personal foundation for a
commercial connection may result in failure to accomplish corporate
objectives. Developing a connection might take anything from a few days to
several months. Formal meetings, house visits, invites to sporting events,
long meals, and beverages are all part of it.
INTRODUCE THE CHINESE CULTURE

SUCCESS AND FAILURE FACTORS OF JOINT VENTURE
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SUCCESS FACTORS
 Agreement
 Alignment
 Development
 Flexibility

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SUCCESS AND FAILURE FACTORS OF JOINT VENTURE
(cont..)
FAILURE FACTORS
 Lack of a proper Joint Venture Agreement
 Lack of finance
 Control issues
 Compatibility

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Major Cultural Differences between China and the United Kingdom
include more than simply methods of thinking and communicating.
 Punctuality: Less Punctual vs On Time
 Lifestyle: Dependent vs Independent
 Communication: Indirect vs Direct
CULTURAL SENSITIVITY IN CHINA/ THE DIFFERENCES FROM
THE UK

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 Reputation
 Standard of Beauty: White vs Tan
 Humility: Virtue vs Weakness
CULTURAL SENSITIVITY IN CHINA/ THE DIFFERENCES FROM
THE UK

HOFSTEDE CULTURAL DIMENSION: UK AND CHINA
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Geert Hofstede created Hofstede's cultural aspects theory as a
foundation for cross-cultural communication. It employs a framework
developed from component analysis to demonstrate the impact of a society's
culture on the values of its people, as well as how these values connect to
behavior.
 Individualistic and collectivistic
 Uncertainty avoidance
 Power distance index

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 Masculinity vs femininity
 Long term orientation
 Indulgence
HOFSTEDE CULTURAL DIMENSION: UK AND CHINA

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In order to enter into the markets of China, it can be
recommended to enter using Joint Venture. It is feasible
accessibility to commercial areas that are limited in terms of equity
ownership by Chinese government. Learning from the local
partner's expertise conducting business in China. Using the
partner's current sales and distribution channels. Also helps while
participating in official and public auctions, seek for local
treatment.
RECOMMENDATIONS