Eng Paper - Shaq’s Accounting Firm - China Expanding

Essesstial Report of China’s

Culture and Business Conduct

by

CEO

Submitted to

Nash Bryant

Director of Business Operations

Shaq’s Accounting Firm

New York, NY

July 29, 2015

ABSTRACT

Shaq’s Accounting Firm has an interest in expanding its company to another country. They are interested in the opportunity to expand to China. The firm researches about China’s culture, business culture, and business etiquette to better understand it. To understand China, the firm analyzes the most common customs associated with China. The firm learns more about China’s cultural conducts such as their communication, interaction, behaviors, hospitality, and values. The firm compares and contrasts this lifestyle with the U.S.

TABLE OF CONTENTS

INTRODUCTION …………………………………………………………………………………………………………………………4

CHINA’S CULTURE ……………………………………………………………………………………………………………………..4

CHINA’S BUSINESS CULTURE ……………………………………………………………………………………………………..4

CHINA’S BUSINESS ETIQUETTE ………………………………………………………………………………………………….5

CONCLUSION …………………………………………………………………………………………………………………………….6

FIGURE 1 …………………………………………………………………………………………………………………………………..7

WORKS CITED …………………………………………………………………………………………………………………………...8

INTRODUCTION

Starting a company is a difficult task and keeping it going is even more of a challenge. To expand a company to a foreign country, that takes the right team and scenario to be successful. The company is an accounting firm that wants to expand its company to China. Expanding to China can create enormous amounts of opportunities because it is one of the largest countries in the world and has one of the best educational systems in the world. Before expanding to China, there are some things that are vital to having success in China. Some of the most important matters to be aware of are China’s culture, China’s business culture, and China’s business etiquette.

CHINA’S CULTURE

        One of the first things you need to do before taking action to expand a business to China is to learn about China’s culture. Some of the China’s cultural norms are being group oriented, using full names and titles. In most cultures people think of themselves before thinking of the group. They take more of an individualistic perspective than a group oriented perspective. According to De’Edra Williams, “The Chinese rank lower than any other Asian country in the Individualism ranking, at 20 compared to an average of 24. This may be attributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism.” In China, people take more of a group oriented perspective than an individualistic perspective. This helps builds stronger relationships with others which is one of the goals of China’s people. According to E Diplomat, “Deeply rooted in Chinese society is the need to belong and conform to a unit, whether the family, a political party or an organization. The family is the focus of life for most Chinese” Their people really value the meaning of a family or team. They work together as one and are accountable for fellow group members. Another one of China’s cultural norms that foreigners need to know is the way you introduce yourself with your name and title. In the US, you usually just say your name and throughout your conversation you learn of whom people work for and what is their role in the company. According to the Trade Commissioner, “know that Chinese will refer to their company first, then their title, and then their name when introducing themselves to others.” In China, they do not wait to start a conversation to learn about a person’s company and title. They mention it when they introduce themselves. According to E Diplomat, “Names may have two parts; for example: Wang Chien. Traditional Chinese family names are placed first with the given name (which has one or two syllables) coming last (family name: Wang; given: Chien).” Not only do they introduce themselves fully, foreigners have to be aware of China’s culture when introducing them. People in China usually starts with their last name first and their first name last. Introductions in China are very formal when being initiated to show others respect. These are just a few things that are incorporated in China’s culture, there are many more others.

CHINA’S BUSINESS CULTURE

Once a company understands China’s culture, the next thing to do is to learn more about China’s business culture. Not only is China’s culture unique but so is its business culture. There are a lot of traditions that other countries would call subtleties but China’s business people notices. Some of the most important aspects of China’s business culture are the business meetings behavior and emphasis on building lasting relationships. In the US, business meetings usually just require formality. In China, it is much more than just being formal. According to Kwintessential, “Doing business always involves meeting and greeting people. In China, meetings start with the shaking of hands and a slight nod of the head. Be sure not to be overly vigorous when shaking hands as the Chinese will interpret this as aggressive.” In China, people tend not to shake hands too long because they do not like to be physical or touching each other much in a business setting. They tend not to act anyway they could be considered informal during business time, even if it is an event or get together dealing with a business transaction or conversation. According to E Diplomat, “The Chinese will enter a meeting with the highest-ranking person entering first. They will assume the first member of your group to enter the room is the leader of your delegation. The senior Chinese person welcomes everyone. The foreign leader introduces his/her team, and each member distributes his/her card.” Seniority is valued strongly in China’s business culture. Everything happens with the most senior person first, coming into a room, speaking first, introducing others, and leaving first. The most important or powerful people in a room are usually the most senior people and have to be respected at all times. It is extremely important to know who the most senior person in the room is at the time, otherwise it would come off as disrespectful if someone didn’t know. Another important aspect of China’s business culture is the ability to building long lasting relationships. When people in China decide to involve themselves in any business dealing they tend to want a long relationship with a business partner or corporation. According to De’Endra Williams, “The decision making process is slow. You should not expect to conclude your business swiftly.” They prefer to get to know the people who they think they have potential business opportunities with. They want to make sure they can trust a potential business partner and figure out if they are welcomed to be a part of their business and relationship. Chinese people value the importance of a good relationship. According to Kwintessential, “When doing business in China establishing a contact to act as an intermediary is important. This brings with it multiple benefits. They can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks.” One important factor is to hire someone to be an intermediary for your company. The main purpose is to have an interpreter just in case the business partner you are going to in China doesn’t speak your language, you will be able to have a conversation. It would be disrespectful to go to China and expect them to speak English if that is not their native language. During this time period to get to know one another, China business professionals usually will take out the guests out to eat or give out gifts so it is important to know China’s business etiquette.