Management in International Business

Chairman

The company will be expanding its operations to China. The Chinese market is big and expanding, offering numerous opportunities for growth. Besides, low cost of production offers a perfect opportunity to penetrate the Asian market and indeed the whole world.

The Chinese government plays an important role in the Chinese market, and it will be advisable to have programmes that fit into the government agenda (Zadek, 2013).The company should ensure that measures are taken to conserve the environment and avoid pollution. Besides, to avoid adverse government action, the firm must ensure that all regulations are complied with. This is because Chinese laws are erratically enforced, and one may be caught off guard (Zadek, 2013, and Kroeber, 2013).The mode of entry the firm should use is joint venture. This is because the Chinese government tends to favour Chinese firms over foreign firms (US-China Business Council, 2013), and this kind of arrangement will help weather initial challenges such as getting permits.

Chinese is a collectivist society (Zadek, 2013) and any motivation program should have this outlook; that of rewarding a group rather than individuals. Programmes aimed at rewarding individuals may be viewed as embarrassing to the recipients. The same should be seen in the king of leadership put in place.It should encourage group participation in pursuit of organizational goals rather than individual participation. However, social responsibility programmes should be in line with the government programmes (Zadek, 2013) rather than what the company feel is best for the society. This is because the society itself is ready to subjugate its own needs in favour of what it consider to be in the country’s benefit.

Vice Chairman

The risks of doing business in China are numerous. To begin with, there are many administrative requirements to be complied with and no clear timelines for the same (US-China Business Council, 2013) .This means that getting licenses and permits may take longer. Another risk is that the Chinese economy has been slowing down in recent months, and the market may not be big enough to accommodate our company.

Staffing of the company’s operations will be done by employing competent Chinese nationals. However, the danger is that qualified staff  attract huge pay, and they are not readily available (US-China Business Council, 2013).Expatriates may not readily get permits to work, and it may take a lot of time to get them on the ground, due to Chinese bureaucracy. On the other hand, Chinese community is a collectivist community (Zadek, 2013,), and the chosen manager should be able create an environment whereby the workers will feel that they are working for a common organizational benefit and not for their own good. This then requires a good understanding of the Chinese culture.

Secretary

Some of the legal issues to be dealt with while settling in China includes the need conserve the environment as the Chinese governments has been getting tough on polluters lately, after years of laxity (Zadek, 2013, and Kroeber, 2013).Besides, proper labeling of products should be taken seriously, as any slight problem may not be viewed favourably by the authorities (Lee, 2011).

According to Kroeber (2013) the Chinese are proud of their culture and would prefer products with a ‘Chinese touch’ rather than a foreign one. They will therefore not want to buy or consume what they feel foreign to them. It therefore means that the firm should look for ways of giving their products a local Chinese feel.

Some of the opportunities that the Chinese market presents is a very large internal market. The Chinese population is very huge and the economy is growing. Besides, the huge population, especially for unskilled labour, is cheaper than most parts of the world, and a firm can enjoy cost savings. Exports to foreign markets can also be done easily.

The Chinese business culture is one anchored on the face saving principles, It will therefore not be good for an executive to openly contradict another.

Treasurer

There are numerous barriers to import into the Chinese market (US-China Business Council, 2013).Getting requisite permits may take longer than expected. Besides, getting established in China will have to go through the Chinese bureaucracy, sometimes, replicating the same process at various levels of government.

The easiest way to enter the Chinese market is through joint ventures. This is because the Chinese firms are aware of how to go round the government bureaucracy. However, care should be taken so that money is not lost through buying into a firm that has overstated it actual worth.

The 5 stages of negotiation includes; Preparation, Having an Initial Position, Discussion, Compromise and Making a Deal. In preparation for negotiations, one should look for a contact who can introduce him to his Chinese counterpart. This ensures that he is familiar to those he has to negotiate with.

Some of the cultural sensitivities includes the need to have a team. Team negotiation is valued over individuals (Perkowski, 2011). Avoid openly contradicting your counterpart as saving face is also valued. Lastly, the Chinese tends to favour those they know and it is advisable to have a third party introduce you to the organization before you sit down to negotiate.In the event of a conflict, avoids commitment, and find ways postpone decision making, hoping to get time to explain to your horst the objectionable aspects.

Reference

Kroeber, A. (2013, July, 31) .China is Still Risky for Foreign Businesses—but the Rewards Are

Too Great to Ignore. The Atlantic. Retrieved from

http://www.theatlantic.com/china/archive/2013/07/china-is-still-risky-for-foreign-businesses-but-the-rewards-are-too-great-to-ignore/278238/

Lee, M. (2011, October, 14) .Wal-Mart’s latest troubles in China involving mislabeling of its

pork products reflect the retail giant’s struggles in a complex market where rapid

expansion and a cumbersome takeover has marred profit and growth. Reuters. Retrieved

from. http://www.reuters.com/article/2011/10/14/us-walmart-china-idUSTRE79D1S020111014

Perkowski, J.(2011, March 28).Negotiating In China: 10 Rules for Success. Forbes. Retrieved

November 1, 2013, from

http://www.forbes.com/sites/jackperkowski/2011/03/28/negotiating-in-china-10-rules-for-success/2/

US-China Business Council (2013). China Business Environment. Retrieved from

http://www.uschina.org/reports/china-business-environment-tue-05282013-1050#Restrictions

Zadek, Z. (2013, October, 6). The end of irresponsible business practices by multinationals in

China. Insight and Opinion. Retrieved from

http://www.scmp.com/comment/insight-opinion/article/1298364/end-irresponsible-business-practices-multinationals-china?page=all