Investing in Foreign Country

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Excusive Summary
This report aims at discussing the project of investing in China. Our company is a British multinational company in household goods and home furnishing industry whose bedding products are popular. We are planning to invest in a foreign country and China is a good choice. While doing business in China, cultural difference would be the first problem that company have to face. The report examines the cultural difference between the United States and China in five respects: the language differences, unique and accustomed customs, gender difference, mode of thinking and values. Furthermore, the issues that are likely to arise in the foreign country in two functional areas will be mentioned. In the marketing area, entry mode, meeting the need of local market and competitive power are the main point to be analysed. In the human resource management area, three points referred: different personalities of employees, making employees meet the working requirement and raising working enthusiasm. After the analysis, a conclusion can be safely given that considering cultural difference issues roundly helps to solve the problem s of marketing and human resource management. Recommendations for the first part are: 1) Entering Chinese market with a joint-venture mode 2) Transferring some Chinese employees to the England and offering some training program 3) To hold seminar meeting regularly 4) Creating a new manufacturing line of furniture specially in Chinese market. Recommendations for the second part are: 1) To determine a suitable entry mode 2) Doing some wide-range researches. Recommendations for the third part are: 1) get familiar with the nature of the local labour 2) Socialization 3) Training 4) Compensation and rewards 5) Stock option plans

Introduction
This report aims at discussing the project of investing in China. Our company is a British multinational company in household goods and home furnishing industry whose bedding products are popular. We are planning to invest in a foreign country and China is a good choice. While doing business in China, cultural difference would be a problem that company have to face. At the first part, cultural difference would be analysed. British people live in different life style from Chinese people. For example, the language differences, unique and accustomed customs, gender difference, mode of thinking and values. Secondly, the issues that are likely to arise in the foreign country in two functional areas of marketing and human resource management would be mentioned. In the aspect of marketing, the selection of entry mode is firstly referred. Following is the importance of meeting the need of local market and the competition against both other investors and local companies. In the part of human resource management, three issues included: different personalities of employees, making employees meet the working requirement and raising working enthusiasm.

Culture Difference
Investing in China, cultural differences are the vital factor which could not be overlooked. Cultural integration makes it easier to run business successfully. To identify the cultural differences is therefore the main objective for achieving cultural integration (Fabbi, 2011). Generally speaking, there are five main cultural differences.

·Language
Language could not be separable but related closely to culture. Some sociologists believe that the language is the cornerstone of culture— no language, no culture. As entering into a foreign market, language barrier could be the first problem to solve. Language customs are totally different in UK and China. In United States, that people usually speak loudly and even be aggressive or assertive when arguing and sharing ideas is common. In comparison, in the orient countries like China, people always speak softly and more passive than the one from European countries. Chinese people are famous for being hospitable. Being Meticulous is also a good virtue of...
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