Thirdly, of personal friendships is a prerequisite for

Thirdly,
as a country with the second largest economy in the world, but the Chinese
still have very conservative thinking. They often avoid uncertainty decisions. In
fact, no one can control and anticipate problems in the future so many people
have missed the opportunity because they are afraid to make decisions that are
considered risky. Unlike foreign businesses such as the United States and the
United Kingdom, which are referred to as adventurous and risk-takers, the
Chinese business community does not consider risk acceptance to be a natural
part of the business. They often do not make venture investment decisions when
they have not yet felt uncertain about it. They always carefully consider all
aspects and details of the project to avoid cases that may lead to losses. Therefore,
not surprisingly when they often spend a lot of time and effort exploring and
changing the contract terms as well as learn thoroughly about the people they
will work with before signing a contract or making any decision in order to
minimize the risk as possible. In general, Chinese enterprises prefer low-risk
options, even if it offers the chance to reach great opportunities cost along
with potential markets. Therefore, they always take a strict attitude in
developing new markets or cooperating with other parties.

 

Lastly,
any investor who intends to invest in the Chinese market should know that
building a strong relationship is the key to everything. Unlike some western
countries, the creation of personal friendships is a prerequisite for
determining success in China. In the business cultural, the Chinese call it
“guanxi” – the art of creating a business relationship, it means the
mutual relationships necessary for success that investors should pay attention
when approaching the Chinese market. In fact, Chinese people tend to want to be
collaborating with people they know and trust, so building relationships is one
of the most important steps. However, it is not easy to build a solid
relationship, because it takes time and need to have patience to companies or
individuals to prove they are trustworthy and cooperative. From that a good
relationship grows over time and will helps keep the business going smoothly. To
be more specific, in the case of Microsoft, they failed to enter the Chinese market
while not thoroughly researched on how to work here. According to Segurd Leung
(n.d), Microsoft has spent ten years and billions of dollars to learn how to do
business in China. After a long period of time Microsoft finally realized that
all of the basic concepts that made their success in the US and Europe were
meaningless in China. As a result, they began rebuilding “guanxi”, start
by building a relationship with the Chinese government to make business
activities more convenient and assert their place in the Chinese market. Moreover,
Chinese people are very hospitable so people often have a habit of meeting
their partners and discussing their work during the dinner or tea sessions. During
the meeting outside the boardroom, Chinese people will mention some personal
topics to know more about the family as well as the characteristics of the
person that they will work with in the future. Hence, for success in the
Chinese market, it is important for investors to pay attention and spend time
developing relationships with partner companies, government agencies and also
some of trade organizations. 

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