Chinese & Us Culture and Its Characteristics

Introduction:

This case study is based on a joint venture between an American and Asian companies which are Electrowide and Motosuzhou. Electrowide is a company which is based in USA; it develops equipments which are used in cars. The company is thinking about changing the hierarchy of a company which consists of streamlining their operations as well as flattening their organizational structure. Electrowide is focusing on practicing a more easy style of production to improve their business. They also want to expand their business overseas to compete globally. In order to do that, Electrowide have a chosen a Chinese company named as Motosuzhou. It is a large venture based in china. This company is wholly owned by the government of china. It is a typical government company with a regular top down hierarchy structure. The aim of Electrowide is to sell their products to Motosuzhou. The purpose behind this was the believe which Electrowide had in Motosuzhou that it will able to distribute their equipments all over the world specifically in the automobile industry based on China. It is fact that one cannot be lucky every time, this joint venture was not a success. The case would analyze the dimensions and variables with regard to Chinese and United States culture. Secondly, it will explain and analyze the stages required in the process of negotiation and how each factors was affected by culture. Thirdly, it will describe the team of Electrowide and their choices about the negotiation. Lastly, it will tell some up to date tactics to deal negotiations in a better way.

Chinese & US Culture and its characteristics:

The culture of china is one of the oldest cultures of the world. From the business perspective, the practices and culture of china differ from other countries of the world. If one is thinking of expanding its business to china or thinking of doing a joint venture with china then one should understand the culture and customs of china as it is very important for the other country to understand the etiquettes Chinese use in their business and it will be a major source of successful venture with Chinese people. By getting the knowledge of their customs and practicing it will help in avoiding blunders, embarrassment and other problems and focus on the critical factors of success.

From the china's perspective, as the country is growing, it needs a better economic system to boost its economy. They must focus on the development of new infrastructure; focus on educating its youth, balancing the urban and rural population along with its environment. The success in china is amazing for the world but at the same time it also brings certain challenges to compete with the whole world.

The country is growing and expanding from the social as well as economic perspective. China is gaining a lot of importance among different countries of the world specially in US and Europe. China is now a major interest for many countries of the world. Whenever a company is thinking about expansion the first country which comes to the mind is China.

Significant characteristics of Chinese culture:

Among the characteristics of Chinese culture, the most important one is focusing and giving extra value on the cooperation of group. Chinese culture prefers doing their business related work in a group. Team effort produces more result as compare to individual work. Secondly, they focus so much on