There is a depiction that, managements vary with the change in the culture; my client wants to establish its business in China, while its company is American Base organization. Culture of United States of America and China differ from each other therefore the clients’ wants to know the management variation due to this culture gap, the hitches he would come across in establishing it’s business. The present state and forthcoming market will be analyised using PESTEL Analysis and Trompenaars dimensional model in comparing the cultures between the two countries. A brief recommendation on how to manage across culture.
Executive summary 2
Contents page 3
Terms of reference 4
Overview of the situation 4
Analysis of the situation 4
Management varying across culture 12
Forcast and outcomes 16
Terms of Reference
A briefing paper by a Consulting organization specializing in the field of managing across cultures to an American based company (the Client), wants consultation on the change on the management style with the variation of the culture.
American Based Company wants to setup its business in China, Company wants to know the change in the management style in China, because of the change culture of China from America. American based company does not know the Chinese Culture particularly business culture.
ANALYSIS PESTEL Analysis
American Based company wants to identify the political issues, economic, social,technological, environmental and legal analysis of China for the purpose of making decision regarding the establsihement of its business in China. Political
Type of government in China is a Communist state; the political status of the Republic of China is a contentious issue. China is a single-party, bureaucratic, authoritarian state in which capitalism is approved to flourish but many rights that are considered basic in democracies are denied(Williams & Adrian, 1997, pp52-67). International Political Situation
It is a fact that in the international political situation china’s importance have prominent role no body can deny the importance of China in the international political situation. In the present situation of the international politics China always attempts to resolve the conflicts of its regional countries, China played a vital role to act as a bridge between its neighbors relations especially India and Pakistan. China alos contribute in International organizations such as World Bank, Asian developmental Bank, and IMF etc for the purpose to contribute in welfare on international level(Sullivan & Dooley, 2008, pp269-282). .
Administrative policies are bureaucratic rules intended to make it hard for imports to enter into the Chinese market. For example, before the US was allowed to import Genetic Modified Foods such as soybean to China, it had to wait until the relative local authority approved such kind of food safe and unharmful. However, the waiting period may range from one to one and half years (Casson, 1994, pp206-212).
At first, since the initiation of economic reforms in 1979, China has become one of the world's fastest growing economies. As known to all, china's GDP grew at an average rate of 9.88% during 2000-2009. The GDP is the total money value of all the last goods and services produced in the domestic economy during a given year, regardless who owns the factors of production(Sullivan & Dooley, 2008, pp269-282).. When chairman of Xiao ping Deng speech in southward of China in 1992, the economy of China entered a fast growing phase. In the mid of last decade, economic appear overheat again. The problem is that the aggregate desired expenditure is less...