AstraZeneca: Strategic Analysis of UK-China Joint Venture in China

This presentation examines the cultural challenges that AstraZeneca, a UK-based pharmaceutical company, is likely to encounter when forming a joint venture with a Chinese company. It begins by introducing the cultural differences between the UK and China, covering aspects such as greetings, communication styles, business approaches, punctuality, language barriers, and legal frameworks. The presentation then delves into the success and failure factors of joint ventures, specifically in the Chinese context. It also explores cultural sensitivity in China, including the application of Hofstede's cultural dimensions to compare UK and Chinese values. Finally, the presentation provides actionable recommendations for AstraZeneca to navigate these cultural differences, improve business communication, and ensure the success of their joint venture in China.

Assessment

Table of content
• INTRODUCTION
• CHINESE CULTURE AND ITS DIFFERENCE FROM UK
CULTURE
• SUCCESS AND FAILURE FACTORS OF JOINT VENTURE
• CULTURAL SENSITIVITY IN CHINA / THE
DIFFERENCES FROM THE UK
• HOFSTEDE CULTURAL DIMENSIONS: UK AND
CHINA
• RECOMMENDATIONS
• CONCLUSION
• REFERENCES

Introduction
Culture can be defined as way of living life by a group of people
and way of doing things. It is based on various factors such as
Knowledge, behavior, belief etc. Culture can vary from area to
area, country to country. The culture and practices in China may
be lot different that what is followed in UK, therefore it is one of
the important factors to be considered while making important
strategic decisions of business organization

Chinese Culture and its
difference from UK Culture
From the above understanding of
culture, it can be asserted that there are
lot of cultural differences between
Chinese and UK traditions. Culture
can vary from various aspects such as
Languages, beliefs, art, religions,
literature, preferences of consumers,
business laws and regulations,
festivals celebrated, traditional
practices followed etc

Continue…
Greeting: In China greetings are
shared by bowing down to each
other and they are not so
comfortable in being touched by the
stranger whereas in UK and most
other part of the world greetings are
shared by shaking hands and
patting arms or shoulders
sometimes along with that.

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Readability: There is huge difference
in the expression style of people of
UK and China. It is tough to read
mind or thinking of Chinese people
from their expression as they are quite
constant face or poker face whereas
people from UK has expressing faces.
It is sometimes to predict them based
upon their expressions.

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Business Approach: Every country has its own resources and
dependencies. The supply of labor is not so high therefore cost of
labor workforce in UK is high therefore, there are automation
and machine-oriented approach whereas in China labor supply is
adequate which leads to affordable labor cost so, their businesses
are human oriented.

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Punctuality: Chinese people are considered to be more punctual
and follow different meeting ethics strongly, non-adhering with
any of them is considered rude by them whereas there are not
that much set of rules established in UK other than being on
time, therefor they have to be aware of all those principles and
follow them strictly to establish their business in China and get
success.

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Language barrier: One of the major culture changes is change
of communication language between China and UK, language
preferred by UK people is English where Chinese is preferred by
people there. This might be one of the biggest culture differences
between the two countries.

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Legal and Ethical Culture: UK follows various legal systems
like English Law, Northern Ireland Law, European Union Laws
etc. whereas Chinese legal culture is based on Confucian
Philosophy from long and adopted soviet law influenced laws.

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These are some of the prominent cultural differences between
China and UK and this might affect the decision of AstraZeneca
a pharmaceutical company to establish its joint venture in China.
They must critically evaluate all these cultural differences and
analyze the affects that a cultural factor might have on its
decision and come out with an action plan to overcome the
difference.

Success and failure Factors
of Joint Venture
Joint Venture is a form or type of business organization in which
two organizations enters into a business agreement to carry on
the business operations by sharing their resources with each
other. In context of this report we are discussing the plans of
AstraZeneca to expand its business operations out of UK to
China by forming a Joint Venture.