The establishment of Swedish/German Company "Kunstwerke" in China

Résumé du document

This business report deals with the difficulties in the establishment of Swedish/German Company "Kunstwerke" in China. The aim of this report is to give as many solutions and recommendation as possible, to ensure the good setting up of Kunstwerke. It will allow the readers to understand the culture of Chinese people, the differences that it generates from a trade point of view, and how adapt their self as much as possible to the Chinese market. Thus, this report will be essential for an efficient establishment in China. Our business report will be centered on three important axes. In fact, the first part will be dedicated to the comprehension of the problems incurred in China. The second part will tackle the different objectives and constraints with which the company will be confronted. The third part will put in place different steps in order to take decisions and to resolve problems. At the end of the report, a recommendation will be give to Kunstwerke to make their establishment easier. Thus, it will allow the company to begin on a strong foundation and to be the more effective in the Chinese market.

Extraits

[...] In other word, it is easy to understand that its culture plays a significant role in the way of life, of view things and of thinking. We have noted three cultural traits which can characterize the Chinese population and can influence the good progress of the negotiation. The first one is the requirement of harmony. In fact, the term wants mean the anxiety of harmony, this quest of harmony is essential and it is an integral part of the life in the Chinese's society. Thus, to have a benevolent and conciliatory attitude is a foundation principle. [...]

[...] So, the only option that you have, if you want to take the good decision for your business, is to prepare your company to the reality of the Chinese market. In order to improve your chance of success in China you have to respect steps: To understand the Chinese culture. To understand the notion of “guanxi”. To understand and learn the way to treat a business in china. To learn and know the Chinese law and its administrative system. To start your in Germany, Sweden, and more generally in Europe with companies or people who have a link in China. [...]

[...] This perpetual quest of harmony is directly linking by the fact that China is in a high-context of communication. In fact, according to Edward Hall (1976), high context communication means that people in conversation will use indirectness, implicitness and non-verbal expression. Moreover, during interactions, the potential conflicts have to be resolved before work can progress The second trait is the handling of the paradox; Chinese people are very good for that. In fact, as like the yin and the yang which made grey, Chinese use the true and the false, the reality and the dream in the same way during negotiation. [...]

[...] (2000), Exploring Chinese cultural influences and hospitality marketing relationships, International Journal of Contemporary Hospitality Management, Vol No Hall, E. (1976), Beyond culture, New York: Anchor Books. Hofstede, G. (1991), Cultures and Organisations: Software of the Mind, McGraw-Hill, London. Itim International , (2009), Geert Hofsted Cultural Dimensions, [cited the 20th March], http://www.geert-hofstede.com/hofstede_china.shtml Luo, Y. (2000), Guanxi and Business, World Scientific, Singapore Luo, Y., & Chen, M. (1996). Managerial implications of guanxi-based business strategies. Journal of International Management. Zhu Y. and A. [...]

[...] And the best would be to establish your directly with these influential persons. Fifthly, you have to maintain your “guanxi”. In fact, you have to meet your Chinese business partners regularly. To maintain regular contacts can give to you opportunities to emphasize your old and to establish a new through these new contacts. Sixthly, it could be a good idea at the start to hire a translator until you master Chinese. However, you have to be careful because the translator can interfere in your negotiation, try to negotiate in your place. [...]