Marketing and Strategic Planning Paradigm

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Marketing Intelligence & Planning
Emerald Article: Managing strategic planning paradigms in China Hong Liu, Lars-Uno Roos

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To cite this document: Hong Liu, Lars-Uno Roos, (2006),"Managing strategic planning paradigms in China", Marketing Intelligence & Planning, Vol. 24 Iss: 5 pp. 432 - 445
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http://dx.doi.org/10.1108/02634500610682845
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Hong Liu, Lars-Uno Roos, (2006),"Managing strategic planning paradigms in China", Marketing Intelligence & Planning, Vol. 24 Iss: 5 pp. 432 - 445
http://dx.doi.org/10.1108/02634500610682845
Hong Liu, Lars-Uno Roos, (2006),"Managing strategic planning paradigms in China", Marketing Intelligence & Planning, Vol. 24 Iss: 5 pp. 432 - 445
http://dx.doi.org/10.1108/02634500610682845
Hong Liu, Lars-Uno Roos, (2006),"Managing strategic planning paradigms in China", Marketing Intelligence & Planning, Vol. 24 Iss: 5 pp. 432 - 445
http://dx.doi.org/10.1108/02634500610682845

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MIP
24,5

Managing strategic planning
paradigms in China

432

Manchester Business School, China Business Centre,
Manchester, UK, and

Hong Liu
Lars-Uno Roos

Received June 2004
Revised April 2006
Accepted May 2006

Volvo Truck Corporation, Sweden
Abstract
Purpose – To review the importance of the Chinese cultural phenomenon, guanxi, and the marked difference in both consumer behaviour and management practices between China and the West, all from the perspective of market entry by multinational firms. Design/methodology/approach – General conclusions are drawn and strategic imperatives inferred from a review of the relevant literature and a set of case histories based on personal interviews with key executives in the Chinese operations of six large overseas consumer-goods companies. Findings – The undoubted strategic significance of guanxi has been diluted recently among joint ventures designated as “encouraged” by the Chinese government, and is being replaced by a market-driven paradigm of marketing operations. The guanxi-driven paradigm remains a crucial factor in planning and managing effective working relationships when the Chinese partner is one officially classified as “restricted”. Case histories show that early success is no guarantee of continuing dominance, as indigenous competition intensifies and Chinese corporations become larger and better resourced.

Research limitations/implications – Foreign multinational entrants to the Chinese market must remain sensitive to...
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