Multiculturalism: A Key to Business Success in China Markets

This report investigates the impact of multiculturalism on business success in China, examining how diverse ethnic backgrounds and cultures in the workplace contribute to creativity, respect among employees, improved customer service, and an enhanced work environment. It analyzes the effects of globalization on consumer behavior, highlighting the importance of brand perception, cultural values, and effective marketing strategies. By comparing China's culture with that of the US and UK using the Hofstede model, the report identifies key cultural dimensions such as power distance, individualism, and long-term orientation. Furthermore, it provides strategies for marketers and investors aiming for success in the Chinese market, emphasizing relationship building and understanding local market dynamics. The report concludes by offering recommendations for businesses seeking to thrive in China's multicultural landscape, emphasizing the need for cultural sensitivity and adaptation.

Running head: MULTICULTURAL
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Multicultural

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Table of Contents
Introduction......................................................................................................................................3
How Multicultural make the business success in China..................................................................3
How about Globalization change impacts to customer’s behavior.................................................7
Compare China with the US or other countries with a number of population, or investors that
come across to do multicultural. Using a graph or diagram to support points..............................10
Power Distance.......................................................................................................................10
Individualism..........................................................................................................................11
Masculinity.............................................................................................................................13
Long-Term Orientation..........................................................................................................15
Indulgence..............................................................................................................................16
Some strategies for marketers or investors who want to be successful in business......................17
The idea for Business success in China.........................................................................................21
Relationship building can be slow, but the actual business gets done fast in China.....................22
Conclusion and Recommendation.................................................................................................23
References......................................................................................................................................25

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Introduction
In the current business scenario, multiculturalism affects the business success in China. This
report discusses the ways in which multiculturalism make the business success in China. It also
demonstrates the impact of globalization change on the behavior of customers. This report also
compares the culture of China with US and UK culture by using Hofstead model. This report
also illustrates some strategies for marketers who want to be successful in business. In the last,
this report presents the idea for business success in China.
How Multicultural make the business success in China
Multiculturalism brings together a diverse set of ethnic background and culture in the workplace
environment. The employer should identify the diverse business culture as it provides different
benefits. Multicultural makes the business success in China as people belonging to different
nations and socio-ethnic backgrounds. Managers can incorporate the more diversity and
multiculturalism into the recruiting efforts and management style (Kim, 2016).
Following are different multicultural factors that lead to business success in China:
Encourages Creativity
Different culture uses their diverse way to deal with the business issues. When a company deals
in China then it will work with the diverse cultural background. It is assessed that each company
looking towards a situation with a different lens and unique perspectives. The wealth
perspectives in a wide array of ideas can provide the benefit to the team. Encouraging
workforces facilitates the input and feedback during empowering meeting. It is an effective
procedure to engage the workforces in Chinese business (Prato, 2016).
Builds Respect among Employees

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An individual often completes the things or do things that are impolite to others. When an
employer applies diversity training and teaches the team member regarding diversity then
positive things can produce. Role-playing provides the opportunity to employees to put one
another’s shoes to understand the other’s perspective. The company uses different services to
engage the workforces in a dialogue regarding cultural history and family. These small things
can encourage for enhancing the communication and deal in China. Communication will also
lead to workforces who have good knowledge to make feasible interaction. Through this, the
company can appreciate the co-workers in terms of passing their viewpoints on the team
(Postiglione, 2017).
Improves Customer Service
Multiculturalism improves the customer services. It is assessed that customers come as per their
desires in spite of marketing efforts of the company. Having a multicultural employee
demonstrates several faces to customers. In this way, customers have a probability to speak with
someone who knows their native language and also understands to certain customers. A
multicultural employee engages in the global marketplace as it is beneficial for the company to
deal with the customers in China (Prato, 2016).
Enhances Work Environment
Multicultural concept aids an individual to feel appreciated at the workplace. It also develops
unique skills among employees. There are different skills developed by employers related to
cultural backgrounds but the fact is that diversity provides the value to employees at the
workplace. Valued workforces tend to be satisfied and satisfied workforces tend to be more
creative. A diverse company culture has a direct impact on the performance of the business and
provides huge benefits to business owner (Ho, 2016).

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Different Perspectives
It is stated that people from a different culture can see the business in different manners. There
are different priorities and beliefs that need to learn for business to deal in the china. The big
benefits of dealing in China are that people use advanced technology. It is stated that different
culture has a different style of collaboration, which is beneficial to make a conscious effort.
Many Asian and Central American cultures place high worth to develop harmony in a team
before moving forward a culture of U.S. It puts greater focuses on an individual’s action and
thought. But, at the same time, questioning with superior and telling him bad news is a terrible
artificial pas. There is needed to make a balance between different styles in order to get the
advantages of different perspectives (Leibold, and Chen, 2014).
Operating in Other Cultures
Dealing with vendors and customers from other nations and cultures demonstrate different
challenges. There are different approaches who handshake distinctly from those in the U.S. For
illustration, in China, a person can squeeze quietly, not decisively and holds the hand f an
individual for a longer duration. The company should be familiar with their staff with other
cultures as it would be a quick source for how to advise on cross-culture communication (Wang,
Ye, and Schapper, 2016). In China, the company would be competent to speak in the language of
customers due to diverse culture people. The disadvantage is that in the multicultural workplace,
the same issue can emerge in the office. Although, it may take time and provides guidance to all
employees to learn and understand each other’s customs and body language (Graburn, 2015).
Growth and Learning
If a company manages the multicultural team then, employees will be benefited at the workplace.
The company should understand other cultures and identify how to communicate across cultural

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barriers. It can be an effective source to make business in China. The company should provide
the chances for employees to use foreign languages that are significant to stay fluent (Jijiao,
2016).
Paperwork Challenges
It is assessed that one of the key disadvantages is to develop a multicultural workforce in the
paperwork. For example, U.S. has strict visa requirement to bring employees from abroad into a
corporation. The regulation may vary from nation to nation and over time. Business should focus
on it in hiring individuals from Indianapolis (Ardakani, Yarmohammadian, and Ardakani, 2016).
Multiculturalism encourages the integration of diverse culture and sharing the ideas and
perspectives of others. The sharing of ideas can encourage to new innovation for business and
leads to building the effective working liaison. Communication and open-mindedness are key
advantages of multiculturalism that can advantage to the business. The company should also
motivate the open dialogues and generates the collaboration, and develops teamwork amongst
staff. Furthermore, multiculturalism illustrated the respect, tolerance, and acceptance that
enhances the culture of the company and declines the conflict within an organization (Farrer,
2016).
A diverse employee provides competitive benefits to the company, particularly when dealing in
China. Employees with diverse cultural background may make easier to interact internationally.
Hence, the company should gain the understanding of company about diverse environment and
cultures (Bernardo, Salanga, Tjipto, Hutapea, Yeung, and Khan, 2016).
Multiculturalism indicates that business provides the equal opportunity at the workplace.
Transforming document into multiple languages exhibits a commitment of the company to
facilitate the diversity and equal opportunity within an organization. A corporation that wants to

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business in China should focus on diverse culture rather than focusing on a minority group. It is
common business practices for certain documentation like legal and medical document can be
transformed into the language. It is generally found in local business. Certain areas of UK are
committed to multiculturalism and bilingualism (Ho, 2015).
Multilingual communication not only enhances the accessibility but also enhances the
opportunity of trading. Multiculturalism provides chances to business for making their
international presence and enhances the corporate accountabilities. Localisation, language
translation, and interpretation can aid the company to build a more effective working association
with clients from different cultural backgrounds and also generates a healthy working
atmosphere (Park, 2017).
How about Globalization change impacts to customer’s behavior
Globalisation is demonstrated by global and government company as a substance to integrate the
developing nation into the world economy. Globalisation may improve their production and
export capacities. Along with this, the number of citizens is increasing in developed nations and
does not perceive globalization as an opportunity for the economic growth of their own nation.
Due to vast globalization, the brand is considered as one of the key drivers that have an impact
on the behavior of the consumer. Brand involves both local and global brand. In this way, global
brand increases homogeneity in the people’s behavior (Malik, 2015).
Generally, these are considered as a type of brand which has very strong popularity with regards
to availability, awareness and strong recognition from the market. In addition, the demand for
international brand increases day by day because several factors have an impact on the
customer’s behavior such as perceived value and image of the customer. There is complexity to
measure the impact of a global brand in buying decision of consumer as a company should use

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an effective approach such as brand preference and brand equity to influence the behavior of the
consumer (Teng, 2015).
A global brand has different benefits with regards to cost saving and attaining economies of
scale. It indicates that corporation, which operates internationally can save cost by producing a
product on large scale. The company can measure the term of consumer perception outlook.
Furthermore, a global brand can have different sort of perception in a different area of world
markets (Hong, and He, 2015).
Due to globalization, the origin of consumer culture has been improved. International consumer
focuses on culture in their service. Nowadays, the company focuses on trend to make the product
as per the global consumer. Consumers make a preference to purchase the products which are
associated with own culture. Culture has a strong impact on the behavior of the consumer. It has
a direct influence on the behavior of consumer hence company should manufacture the products
as per the culture of people. The corporation should understand the culture of customers and also
give respect to their culture. A customer gives value to culture and also focuses on their tradition
and religion before purchasing the products (Morgan, and Qiao, 2016).
Culture has an impact on the state of mind of consumer towards particular products and services.
When a corporation adopts the cultural values then it will help in marketing. The cultural value
may influence the loyalty of brand. It is assessed that consumers prefer those brand that supports
to their culture. Factor that influences the marketing is technology customization and
globalization.
Different sort of strategies can be used in marketing to influence the behavior of the consumer at
the time of globalization (Gao, 2016). One of the significant strategies is marketing mix that
composes the product, price, place, and promotion. Under the promotion strategy, a corporation

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can attract the consumer with regards to products and sales promotion like discount rates. A
marketer can pull the attention of consumer for the product and have a greater impact on the
consumer purchase behavior (Shohat, and Stam, 2014).
Marketing is an essential technique for generating the demand of the product. But, at the same
time, it is evaluated that marketer cannot take control of the buying behavior of the consumer.
Although, it may persuade the consumer for purchasing certain products but they cannot take all
control on buying decision of consumers (Benton, and Gomez, 2014).
There are several factors that have an impact on the consumer buying behavior are price, place,
promotion, and distribution of products. The advertisement is the key element of sales promotion
that may affect on the consumer purchasing behavior during globalization. It is stated that
advertising is a key technique by which awareness regarding the product is generated in the state
of mind of the consumer so that they can buy the product as per their needs. Advertising is one of
a key source of interaction that may impact on the consumers and influence the consumers to
purchase the products (Zang, 2015).
Normally people focus on those products of the brand in the advertisement to which they are
loyal and want to buy. During the globalization change, it is identified that dominance, pleasure,
arousal and brand recall is considered as emotional responses of consumers that have a direct
impact on consumer buying behavior. When advertisement increases the emotional response of
consumer then company may get the opportunity to influence the buying behavior of consumers.
Further, the key factor that highly affects the consumer purchasing behavior during changes in
globalization is technology (Chen, 2015).
The Internet is the key powerful technique of the technology as it avoids the barriers in all terms
such as any individual of any nation can excess the internet without any excise duty on the use of

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it. The Internet may bring the radical alteration in the world of computerization. There is a wide
opportunity with the company for selling their products through the internet. In addition, the
internet is becoming a key source of information knowledge, learning and getting excess to the
global market (Wu, 2017).
Compare China with the US or other countries with a number of population, or investors
that come across to do multicultural. Using a graph or diagram to support points
(Sources: Hofstead insight, 2018).
Power Distance
This dimension is based on the fact that all people in societies are not equal. It also indicates the
attitude of culture with regards to inequalities amongst us. Power distance is described as the
extent to which the less influential individuals of organizations and institution within a nation
accept and expect that power is allocated unequally (Momesso, 2016).
As per the above index chart, it is depicted that China has got 80 scores in power distance. It
shows that in China, society believes that inequalities between people are suitable. The superior
and subordinates association tends to be polarized and there is security against power abuse by

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top authority. Further, in China, an individual is persuaded by formal authority and sanctions and
capacity of people rely on initiative and leadership of authority. An individual should not have
ambitions beyond their position (Wong, 2017).
In contrast to this, Britain got low rank i.e. 35 in PDI. It shows that in the United Kingdom, a
society believes that inequality between people should be eliminated. Research indicates that
Power Distance index is lower between the higher classes in Britain as compared to between the
working classes. The Power Distance score shows the dissimilar and well-developed society of
Britain. This chart also depicts the inherent stress in the British culture and also shows the
significance of birth rank. There is a deep-seated belief that where an individual born and also
there is no limit how far an individual can travel in life. A sense of fair play leads to a belief that
an individual will treat in some way as equals (Jackson, 2017).
Individualism
The key issue identified by this dimension is the extent of interdependence that a society
maintains between its members. It also indicates that whether self-image of people can be
defined in terms of ‘I’ or ‘We’. In the individualist societies, individuals are supposed to look
after themselves and their family. In the collectivist societies, an individual belongs to ‘in-group’
that take care of them in exchange for reliability (Zhang, 2015).
As per the above chart, it can be stated that China has obtained 20 scores in highly collectivist
culture in which people perform in the interest of group but not necessarily of themselves. Group
collectivist influence the promotion and hiring with closer in-groups. It is about getting a
preferential deal (Liu, 2016). In China, employee’s commitment is low but not required that all
people in the organization do not engage at the workplace. In addition, liaisons with colleagues

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are cooperative for in-group and even hostile to out-groups. Personal liaisons can exist over task
and company (Zang, 2016).
On the other hand, UK has obtained 89 marks that are highest of the individualist scores due to
initiating by some of the Commonwealth nations such as Australia and USA. The British nation
considers highly individualist and private people (Goh, 2016). Children learn from their early
age to consider for themselves and to find out what their unique intention in life is and how they
distinctively contribute to society. The path of happiness is personal satisfaction. It is assessed
that wealth of Britain has increased throughout last decade. In the UK, there is uncontrolled
consumerism and it also focuses on supporting the ‘ME’ culture (Sun, and Yu, 2016).
The moderately low score on power distance i.e. 40 shows the combination most individualist
culture i.e. 91 in the United States. It shows that the American premises of liberty and fairness
for all. It explicitly focuses on fair rights in all aspects of American government and society.
Under the American company, the hierarchy is developed for convenience where, supervisors are
accessible and managers depend on each individual’s performance and teams for their expertise
(Byrne, 2016). In this nation, both employees and managers are expected to consult and data is
shared regularly. Communication can be direct, participative and informal to a high extent. In
this nation, society is loosely-knit where the expectation is that an individual will look after
themselves and then their family only (Kuan, 2016). They will not depend on authority for
support.
There is also the high extent of geographical mobility in the US. American is the best joiners in
the world. But, it is often complex, particularly between men in order to build deep friendships.
Americans are familiar to initiate the business and communicate with people (Goh, 2016). It is
also assessed that Americans are not shy regarding approaching the prospective counterpart in